President Prabowo Subianto on Monday inaugurated the Refinery Development Master Plan (RDMP) project in Balikpapan, East Kalimantan, marking a major milestone in Indonesia’s efforts to reduce fuel imports and strengthen energy independence.
The Balikpapan RDMP is a National Strategic Project (PSN) undertaken by PT Kilang Pertamina Balikpapan (KPB), a subsidiary of PT Kilang Pertamina Internasional (KPI), the processing and petrochemical subholding of state-owned energy company PT Pertamina (Persero).
Energy and Mineral Resources Minister Bahlil Lahadalia said the project would significantly cut Indonesia’s reliance on imported fuel. With an investment of US$7.4 billion, or around IDR 123 trillion, the RDMP has increased crude oil processing capacity by 100,000 barrels per day (bpd). The Balikpapan refinery now has a total processing capacity of 360,000 bpd, up from 260,000 bpd previously, making it the largest oil refinery in the country.
“This project, with an investment of US$7.4 billion or IDR 123 trillion, is Indonesia’s largest RDMP. We are increasing production from 260,000 barrels to 360,000 barrels per day, moving toward EURO V fuel standards and net zero emissions,” Bahlil said at the inauguration ceremony.
He explained that the operation of the Balikpapan RDMP would reduce gasoline imports by boosting domestic production by 5.8 million kiloliters per year. Indonesia’s current gasoline consumption stands at around 38 million kiloliters annually, while domestic production is about 14.25 million kiloliters.
“With the additional 5.8 million kiloliters, gasoline imports will fall to around 19 million kiloliters per year,” Bahlil said, adding that the project would save approximately IDR 60 trillion in foreign exchange.
The RDMP is also expected to significantly reduce diesel fuel imports. Combined with the mandatory biodiesel blending programs of 40 percent (B40) and 50 percent (B50) this year, Indonesia is projected to eliminate diesel imports and potentially achieve a surplus.
“Our total diesel demand is about 38 million metric tons. With B40 and B50, we add around 5 million metric tons. This means imports can be fully covered, and we may even see a surplus of around 1.4 million metric tons,” Bahlil said.
Pertamina President Director Simon Aloysius Mantiri said the Balikpapan RDMP is an integrated upstream-to-downstream oil and gas project. Key components include a 78-kilometer refinery fuel gas pipeline from Senipah to Balikpapan, the construction of a Residual Fluid Catalytic Cracking (RFCC) unit and upgraded facilities to meet EURO V fuel standards.
“The heart of the RDMP is the RFCC, which allows residues that were previously unprocessed to be converted into valuable products,” Simon said.
Additional facilities include fuel storage terminals with a combined capacity of 125,000 kiloliters, four marine piers, and expanded crude oil storage at Lawe-Lawe, increasing capacity from 5.6 million barrels to 7.6 million barrels. With the project now operational, the Balikpapan refinery has overtaken the Cilacap refinery, which has a capacity of 348,000 bpd, to become Indonesia’s largest oil refinery.
January 12, 2026, CNBC Indonesia
(https://www.cnbcindonesia.com/news/20260112173931-4-701737/breaking-kilang-terbesar-diresmikan-prabowo-ri-kurangi-impor-bbm)