The Minister of Energy and Mineral Resources (ESDM) revealed that the progress of the Balikpapan Refinery Development Master Plan (RDMP) project is almost complete. The Balikpapan oil refinery or RDMP itself is managed by PT Kilang Pertamina Internasional (KPI) as a Subholding Refining & Petrochemical of PT Pertamina (Persero).
Arifin said that until now the project has progressed up to 91%. Even so, Arifin said that completing the construction of the project would take time.
“The progress is now more than 91%. But to reach 100%, it will take time. And indeed, there are challenges that must be resolved,” said Arifin when met at the Balikpapan RDMP Office of PT KPI, East Kalimantan, Sunday (11/8/2024).
Meanwhile, he said that although it would take time to complete the construction of the project, his party is targeting the largest refinery in Indonesia to be completed in September 2025.
“(Target completion) September 2025. Deadline. We hope it’s not too late,” he said.
Furthermore, he revealed that there were various things that made the project still need time, such as the Covid-19 pandemic that had hit the world to the geopolitical conflict between Ukraine and Russia.
“So yesterday there was a Covid problem. The Covid problem disrupted the progress. After that there was a geopolitical crisis, Russia-Ukraine apparently also affected the logistics system. This is what really needs to be resolved,” he explained.
During Arifin’s visit to RDMP Balikpapan today, Sunday (11/8/2024), Arifin witnessed firsthand a number of production units that had been successfully completed, including the Crude Distillation Unit (CDU) IV. CDU IV is now operating normally; the completion of this unit makes the Balikpapan Refinery the refinery with the largest production capacity currently owned by Pertamina.
Arifin also directed that all teams involved in this project always evaluate and support teamwork so that the project can run well. According to him, communication must be maintained well, and every possible risk must be anticipated with the right steps.
“If it drags on, we must anticipate what the next steps are, of course everyone must provide input,” he added.
Based on PT KPI data, the Balikpapan RDMP project has an investment value of US$ 7.4 billion, equivalent to IDR 118.02 trillion (assuming an exchange rate of IDR 15,949 per US$). Of the total investment, US$ 4.3 billion or IDR 68.5 trillion comes from equity, while US$ 3.1 billion, equivalent to IDR 49.8 trillion, is obtained through loans supported by the Export Credit Agency (ECA).
One of the main objectives of the RDMP project is to increase the refinery’s processing capacity from 260 thousand barrels per day (bpd) to 360 thousand bpd. This increase in capacity will not only increase national fuel production, but also improve the quality of the products produced. With the new technology applied, the Balikpapan Refinery will later be able to produce fuel with Euro V standards, much more environmentally friendly than previous products which were only equivalent to Euro II.
August 11, 2024, CNBC Indonesia
(https://www.cnbcindonesia.com/lifestyle/20240811170434-33-562104/kilang-minyak-terbesar-ri-bakal-operasi-september-2025)