Balikpapan RDMP, Boosting the City's Economic Growth

Friday, 28 November 2025

The Balikpapan Refinery Development Master Plan (RDMP) project, run by PT Kilang Pertamina Balikpapan (PT KPB), a subsidiary of PT Kilang Pertamina Internasional (KPI), continues to have a positive impact on the city of Balikpapan. In addition to being a strategic project with an investment value of around USD 7.4 billion or equivalent to IDR 120 trillion, the RDMP construction activities have also boosted the city's economy and opened up many opportunities for the community.

VP Legal & Relations of PT KPB, Asep Sulaeman, revealed that during the peak construction period, the number of workers involved reached 24 thousand people. “The presence of thousands of workers has boosted the city's economy through daily spending, transportation, food and beverage services, and accommodation. Logistics and project support services have also increased demand for local businesses,” said Asep.

Asep explained that the ripple effect of the RDMP can be seen in the field. The food, restaurant, and catering businesses experienced an increase in demand. Lodgings, hotels, boarding houses, and house rentals were fully occupied by workers. Laundry services were in high demand, while transportation businesses such as car, motorcycle, bus, and city transportation rentals experienced an increase in activity. “Even public transportation vehicles, which were previously empty of passengers, are now being used to transport project employees,” he added.

Asep added that the use of Domestic Component Level (TKDN) reaching 35% also strengthens the project's contribution to Balikpapan's economic growth. “The construction sector is increasing, transportation and warehousing businesses are becoming more active, and trade and corporate services are also developing,” he explained.

Data from the Balikpapan Central Statistics Agency (BPS) shows that RDMP activities have had a ripple effect that has driven the local supply chain and strengthened the city's economic structure. Balikpapan's Gross Regional Domestic Product (GRDP) per capita in 2024 reached IDR 214.11 million, up 6.22% from the previous year.

The 2024 Balikpapan City Economic Report notes that the impact of the RDMP Project is also evident in the increase in city investment, where the realization of Foreign Investment (PMA) and Domestic Investment (PMDN) rose by around 7.08% from 2023 to 2024. This increase also reflects the strong industrial activity during the RDMP construction period.

Balikpapan Mayor Rahmad Mas'ud expressed his appreciation for the synergy between the City Government and Pertamina. According to him, the presence of this project has opened up job opportunities for the people of Balikpapan and other regions while strengthening national energy security.

“We thank Pertamina for employing many workers, both local workers and workers from various regions in Indonesia. This is very important for national energy security, and thank God it is located at the Balikpapan Refinery,” he said.

Rahmad also noted that this project provides a tangible boost to the local economy and urban development. “It also enhances our potential, both in terms of revenue and the economy, as well as the development of our city into a modern urban center,” he added.