Consistent Governance Earns PT KPB Highest Rating of idAAA(sf) from PEFINDO

Friday, 3 October 2025

PT Kilang Pertamina Balikpapan (KPB) has once again received the highest rating of idAAA(sf) from PT Pemeringkat Efek Indonesia (PEFINDO) for structured project financing instruments. This rating is valid from September 1, 2025 to September 1, 2026 and confirms the high level of confidence in the financial strength and prospects of the Balikpapan Refinery Development Master Plan (RDMP) project. In its report, PEFINDO stated that the idAAA(sf) rating reflects KPB's superior ability to meet its long-term financial obligations.

PT KPB's Director of Finance and Business Support, Nailul Achmar, considers PEFINDO's highest rating as proof of market confidence in the company's financial strategy. "This achievement shows that KPB's financial management and financing strategy are considered credible by independent institutions. With this rating, we are increasingly confident in maintaining the smooth running of the Balikpapan and Lawe-Lawe RDMP projects while ensuring their benefits for the community and national energy security," he said.

The main factors supporting this highest rating are strong sponsor support from PT Pertamina (Persero) through PT Kilang Pertamina Internasional (KPI), a solid project structure, and stable demand prospects for refinery products. However, the rating still has limitations, mainly due to the high dependence on project completion and a fairly high level of financial leverage. “The rating could be downgraded if there is no direct support from PT Pertamina (Persero) in maintaining KPBA (PT Kilang Pertamina Balikpapan-ed) debt payments, which indicates low support,” Pefindo wrote in its report.

The Balikpapan and Lawe-Lawe RDMPs are National Strategic Projects (PSN) with an investment value of USD 7.4 billion. This project will increase refinery processing capacity from 260 thousand barrels per day (kbpd) to 360 kbpd, improve product quality from EURO II to the more environmentally friendly EURO V standard, and increase refinery complexity to drive operational efficiency and expand product range.

In addition, this project provides a multiplier effect for the regional and national economy through the absorption of local labor, opportunities for supporting industries, and improvements in the domestic supply chain. As of August 2025, the construction of the Balikpapan and Lawe-Lawe RDMP has reached more than 96% and is now entering a crucial phase towards equipment testing (commissioning) and the start of refinery operations (start-up).

Meanwhile, PT KPB's VP of Legal & Relations, Asep Sulaeman, believes that recognition from this independent rating agency can strengthen public confidence in PT KPB's commitment. "This rating reflects not only financial strength, but also confidence in KPB's commitment to maintaining governance, environmental compliance, and work safety. We want to ensure that the benefits of the Balikpapan and Lawe-Lawe RDMP are truly felt by the wider community while supporting national energy security," he said.

With the idAAA(sf) rating assigned by PEFINDO, PT KPB's position as a key entity in supporting the PSN in the energy sector is strengthened. Strong support from Pertamina, credible financial management, and a commitment to governance and sustainability are the determining factors for this achievement.