House of Representatives Commission XII Oversees Completion of Balikpapan RDMP Project to Reduce Fuel Imports and Strengthen National Energy

Wednesday, 24 September 2025

As one of the National Strategic Projects (PSN), the Balikpapan and Lawe-Lawe Refinery Development Master Plan (RDMP) has once again received special attention. This was demonstrated by a specific working visit by Commission XII of the House of Representatives (DPR) of the Republic of Indonesia (RI) to PT Kilang Pertamina Balikpapan (KPB) on Wednesday (18/9). The purpose of this activity was to ensure the completion of the project according to the planned schedule while providing tangible benefits to the community.

Also present at the event were the President Director of PT Kilang Pertamina Internasional (KPI) Taufik Aditiyawarman along with the board of directors, the President Director of PT KPB Bambang Harimurti, and representatives from the Ministry of Energy and Mineral Resources (KESDM) Directorate General of Oil and Gas, Acting Director of Downstream Oil and Gas Business Development, Muhiddin. This collaboration is an important factor in supporting the smooth completion of the Balikpapan and Lawe-Lawe RDMP Projects.

Deputy Chairman of Commission XII of the Indonesian House of Representatives, Dony Maryadi Oekon, emphasized that the Balikpapan RDMP project has a strategic role for Indonesia, especially with the presence of the national capital in East Kalimantan. "East Kalimantan Province is transforming into a national energy-industry hub as well as a buffer for the capital of the archipelago. With a surge in regional fuel demand of around 10 percent by 2024, the role of RDMP Balikpapan is becoming increasingly vital," he said.

Currently, RDMP Balikpapan and Lawe-Lawe are entering a crucial phase towards equipment commissioning and the start-up of the refinery. This stage will determine the success of the project in increasing production capacity and fuel quality.

Dony also highlighted the progress of the project with the operation of the Saturated Liquefied Petroleum Gas Treater Unit. This unit functions to clean LPG produced by the refinery from impurities, especially sulfur, which is odorous and corrosive, resulting in safer, odorless LPG products that meet standards. “So, if we look at the results of our visit today, we can see that progress is evident, and, God willing, production will begin this year. Actually, production has already begun because the LPG has entered the tanks, so they are ramping up production,” explained Dony.

Furthermore, he emphasized the significance of this unit for national energy needs. “Yes, currently, the main product entering the tank is LPG, and we still import the majority of our LPG. So, with this product, it will also reduce our imports. Secondly, our import prices are very high, so with this, our gas needs will also be helped,” he added.

The Balikpapan RDMP project has three main objectives, namely to increase refinery processing capacity from 260 thousand barrels per day (kbpd) to 360 kbpd, to improve product quality from EURO II to the more environmentally friendly EURO V standard, and to increase refinery complexity in order to promote operational efficiency and expand product range. The completion of this project is expected to strengthen national energy security, sovereignty, and independence.

Vice President (VP) of Legal & Relations at PT KPB, Asep Sulaeman, emphasized that the support of the Indonesian House of Representatives strengthens the spirit to complete the project. “This visit provides positive energy for all PT KPB employees and partners who are working hard to complete the Balikpapan and Lawe-Lawe RDMP. We are committed to maintaining safety, environmental, and community empowerment aspects so that this project will bring broad benefits,” he said.

With the full support of the government, the Indonesian House of Representatives, and the community, the Balikpapan and Lawe-Lawe RDMP Project will be an important milestone in strengthening national energy independence, reducing dependence on imported products, and increasing the competitiveness of Indonesia's oil and gas industry at the global level.