PT Kilang Pertamina Balikpapan Achieves ESG and Energy Efficiency Initiative Awards, Encouraging the Development of Environmentally Friendly Refineries as a Sustainable Energy Future

Thursday, 20 March 2025

PT Kilang Pertamina Balikpapan (PT KPB) has again made achievements in the energy industry by winning prestigious awards in the Environmental, Social, and Governance (ESG) and Energy Efficiency Initiative categories in the Anugerah BUMN 2025 event organized by BUMN Track and BTA Academy. This award emphasizes PT KPB's commitment to implementing sustainable business practices and energy efficiency in the refinery processing sector.

PT KPB's Finance Director, Nailul Achmar, said that this achievement is a tangible result of the energy transformation strategy implemented by Pertamina Group. “The Balikpapan Refinery Development Master Plan (RDMP) project that we manage not only aims to increase production capacity, but also produce refinery products that are more environmentally friendly. In this project, we built new refinery units that enable the production of EURO 5 standard fuels, which contribute significantly to reducing sulfur dioxide (SO₂) emissions and improving energy efficiency,” Nailul said.

Anugerah BUMN 2025 raised the theme “BUMN Superior Performance for an Empowered Indonesia: Innovation, Collaboration and Transformation”. SOE Track gives appreciation to SOE companies and SOE subsidiaries, which demonstrate superior performance in various aspects of business, including innovation, governance, and environmental and social sustainability. This event involves a rigorous selection process by an independent jury that assesses the strategy, implementation, and impact of the programs run by the company.

PT KPB won two prestigious awards, namely as one of the three best companies in the ESG (Environmental, Social, and Governance) category for the BUMN Subsidiary category, which reflects the company's success in integrating sustainability principles in its business operations. In addition, PT KPB also won the Energy Efficiency Initiative award, which recognizes the company's commitment in implementing energy efficiency strategies to support the transition to more environmentally friendly refinery operations. This achievement further emphasizes PT KPB's position as a leader in national energy industry innovation, especially in managing sustainability and energy efficiency.

As a national strategic project (PSN), Balikpapan RDMP implements various cutting-edge technologies to realize a cleaner energy transition. Some of the new process units that play an important role in this transformation include Diesel Hydrotreating (DHT), Naphtha Hydrotreating (NHT), and RFCC NHT which function to reduce sulfur content in diesel fuel and gasoline to produce EURO 5 standard products. In addition, the Sulphur Recovery Unit (SRU) processes acid gas containing hydrogen sulfide (H₂S) into elemental sulfur with 99% purity, thereby reducing the potential for air pollution. De-NOx and scrubber technologies are applied to reduce NOx and SOx content in flue gas, while the utilization of waste heat recovery allows the use of heat from turbine exhaust gas and fired heaters to improve energy efficiency and reduce carbon emissions.

“The mitigation and decarbonization efforts implemented in this project have been proven to reduce greenhouse gas (GHG) emissions by 30% compared to the no-mitigation scenario. This shows that the design and technology we use have a real impact in supporting the government's net zero emission target,” added Nailul.

In addition to focusing on energy efficiency, PT KPB is also committed to implementing ESG principles. PT KPB VP Legal & Relations, Asep Sulaeman, emphasized that sustainability has become part of the company's main strategy in managing the refinery. “This award further strengthens PT KPB's position as an energy industry player that prioritizes ESG principles. We ensure that every aspect of operations, from energy efficiency, waste management, to social aspects and corporate governance, always meet national and global standards such as the IFC World Bank Guideline,” said Asep.

Previously, PT KPB has also received various other awards, including the Indonesian Record Museum (MURI) Record in the category of “Simultaneous Cleaning Action on the Most Floors by Oil and Gas Production Facility Workers”, Asia Pacific Petchem Deal of the Year, The Downstream Energy Project of the Year, and Balikpapan Investment Award.

As part of Pertamina Group, PT KPB will continue to strengthen decarbonization and energy transition initiatives towards the Net Zero Emission 2060 target. The completion of the Balikpapan and Lawe-Lawe RDMP Projects will play a key role in supporting national energy security in line with the President of Indonesia's asta cita to strengthen national resilience and independence.

“We will continue to innovate in applying the best technology and ensure that Pertamina Balikpapan Refinery operations will be more efficient, environmentally friendly, and contribute to Indonesia's net zero emission target,” Asep concluded.