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Pertamina Targets 330,000 Tonnes Additional Production from RDMP Balikpapan

RDMP Balikpapan, a national strategic project executed by PT Kilang Pertamina Balikpapan, is designed to increase refinery capacity from 260 kbpd to 360 kbpd and enhance quality from Euro II to Euro V.

Stepanus I Nyoman A. Wahyudi

11 Feb 2024 - 15.19
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Pertamina Targets 330,000 Tonnes Additional Production from RDMP Balikpapan

Balikpapan Refinery. /Pertamina

Bisnis, JAKARTA — PT Kilang Pertamina Internasional (KPI) targets an additional production capacity of liquefied petroleum gas (LPG) by 330,000 metric tons per year from the Refinery Development Master Plan (RDMP) project in Balikpapan.

Currently, the average LPG production from KPI remains stable at around 900,000 metric tons. All LPG production capacity from the Pertamina group is derived from crude oil processing.

"In the future, once the development of the Balikpapan refinery is completed, it can add LPG production by around 330,000 metric tons per year," said PT KPI Corporate Secretary, Hermansyah Y. Nasroen, when contacted on Friday (9/2/2024).

Through the potential additional production from the Balikpapan refinery capacity enhancement project, LPG imports can be slightly reduced.

"LPG production from KPI has been stable around the 900,000 metric tons range for the past few years," he said.

Previously, PT Pertamina (Persero) successfully secured funding of $3.1 billion equivalent to IDR46.18 trillion (assuming an exchange rate of IDR14,898 per US dollar) to complete the Balikpapan RDMP project.

Pertamina's finance director Emma Sri Martini said the funding from the Export Credit Agency (ECA) and several commercial banks would support the continuation of the refinery expansion project, which is one of the government’s national strategic projects (PSN).

"We're about to close, with facilities obtained totaling approximately $3.1 billion. Currently, the project is still on track with 72 percent progress," Emma told Bisnis at the House in June last year (14/6/2023).

Emma added that the company is also finalizing several loan and financing schemes from several international financial institutions to complete the government assignment project.

RDMP Balikpapan, a national strategic project executed by PT Kilang Pertamina Balikpapan, is designed to increase refinery capacity from 260 kbpd to 360 kbpd and enhance quality from Euro II to Euro V.

The project, with an investment value of $7.2 billion or equivalent to IDR107.26 trillion, employs 20,250 workers during the project phase and 600 people during the operational phase. The project is also aimed at absorbing domestic content levels of 30 percent to 35 percent.


In addition to meeting national fuel needs, the Balikpapan Refinery will also produce petrochemical products, namely 225 KTPA of propylene, which will serve as feedstock for the New Polypropylene (PP) Balongan to substitute imported products.

The Energy and Mineral Resources (EMR) Ministry reported that the domestic LPG refinery capacity has been decreasing annually. The decline in liquefied gas processing capacity is due to the cessation of investment and operations of several major refineries over the past five years.

According to the 2022 performance report released by the Directorate General of Oil and Gas, LPG refinery processing capacity in Indonesia in 2021 reached 3.78 million tonnes per year.

This figure experienced a decrease from the positions in 2020 and 2019, which recorded processing achievements of 3.88 million tonnes and 4.74 million tonnes, respectively.

Meanwhile, the LPG production targets from 2020 to 2024 are set at a conservative figure of 1.97 million tonnes annually.

According to the EMR Ministry, the decline in processing capacity and LPG production is largely due to PT Yudistira Energi refinery’s cessation of operation in April 2021.

The processing company was known to have not extended its business license due to the lack of certainty in the supply of natural gas raw materials from upstream.

Additionally, the EMR Ministry also received a report regarding the cessation of operations of the Pertamina Mundu LPG Refinery in May 2016 due to the same reason. The report was only received by the ministry in 2021.

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Editor: Ibeth Nurbaiti

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