President Prabowo Subianto inaugurated the Refinery Development Master Plan (RDMP) Balikpapan project in East Kalimantan on January 12. The project represents a major modernization of Refinery Unit (RU) V, or the Balikpapan Refinery, owned by PT Pertamina (Persero). 

“I, Prabowo, President of the Republic of Indonesia, hereby inaugurate the integrated energy infrastructure of Pertamina’s Refinery Development Master Plan Balikpapan,” he said. 

The RDMP Balikpapan project has been under development since 2019 and covers the crude oil receiving system, processing facilities, and supporting infrastructure to strengthen the reliability of the national energy supply chain as a whole. The refinery development is designated as a National Strategic Project (PSN). 

The total investment value of the project reaches USD 7.4 billion, equivalent to IDR 124 trillion. Of this amount, USD 4.3 billion was sourced from equity, while USD 3.1 billion was obtained through loans supported by Export Credit Agencies (ECA). 

The investment is allocated to modernizing the refinery, increasing crude oil processing capacity, producing higher-quality and more environmentally friendly fuels, and supporting downstream petrochemical industrial development. 

Prior to the project, the Balikpapan Refinery was Indonesia’s second-largest oil refinery, with a processing capacity of 260 thousand barrels per day (KBPD), accounting for 25.2% of Pertamina’s total refining capacity. 

The RDMP Balikpapan project increases the refinery’s processing capacity from 260 KBPD to 360 KBPD. It also upgrades product quality standards from EURO II to EURO V, boosts fuel production from 197 KBPD to 339 KBPD, and raises LPG output from 48 thousand tonnes per year (KTPA) to 384 KTPA. 

According to the official website of Kilang Pertamina International, the refinery, covering an area of 283.82 hectares, produces diesel fuel, Premium gasoline, Pertalite, Pertadex, aviation fuel (avtur), and smooth fluid. 

Balikpapan Refinery Development 

The RDMP Balikpapan project was designed and implemented through three main, interconnected, and integrated project scopes. This approach was adopted to ensure refinery operational readiness and the sustainability of the national energy supply. 

The first scope consists of 16 preliminary work packages. This stage includes land preparation and development, construction of basic infrastructure, provision of temporary utilities, and development of construction support facilities. 

This initial phase serves as the foundation to support the smooth execution and safety of all subsequent main construction stages of the RDMP Balikpapan project. 

Under the second scope, Pertamina carried out the development and construction of the refinery’s main facilities. This phase includes 39 units, comprising 21 new processing units and 13 supporting utility facilities. 

In addition to building new units, the project also revitalized four main processing facility units, namely the crude oil distillation unit, residue processing unit, hydrocracking and hydrotreating units, and LPG facility recoveries. 

The construction and revitalization of these units aim to enhance the flexibility and reliability of crude oil processing, while also supporting improvements in fuel product quality in line with higher standards. 

The third scope focuses on strengthening crude oil receiving and distribution infrastructure, including the construction of two crude oil storage tanks, each with a capacity of 1 million barrels. 

This infrastructure is designed to improve efficiency, safety, and reliability in receiving crude oil from large-capacity tanker vessels. 

This article is published in partnership with Katadata 

Original article here