Ministry of Investment and Downstream Industry/BKPM Reviews Balikpapan RDMP Project to Ensure Energy Investment is on Track

Monday, 29 September 2025

PT Kilang Pertamina Balikpapan (KPB) received a working visit from the Ministry of Investment and Downstream Industry/Investment Coordinating Board (BKPM) to directly review the progress of the Balikpapan and Lawe-Lawe Refinery Development Master Plan (RDMP) on Thursday (9/25). This activity was an important moment to ensure the sustainability of strategic investments in the energy sector while strengthening the foundations of national energy security. Discussions took place in the Cilacap Room of the PT KPB New Site Office (NSO) building, focusing intensively on project progress, strategies for accelerating completion, and various technical obstacles encountered in the field.

Director of Oil and Gas Downstreaming, Muhammad Nasir Udin Latif, said that this visit was a follow-up to the government's plan in the context of the National Action Plan for the Acceleration of Downstreaming Projects (RENAKSI KOALISI). “On this occasion, we visited KPB to follow up on the roadmap that we had prepared for 2022-2023 and also to achieve the investment realization targets, particularly the realization of oil and gas that has been targeted in the 2025-2029 RPJMN,” he said.

The Balikpapan and Lawe-lawe RDMP is a National Strategic Project (PSN) with an investment value of USD 7.4 billion. This project will increase the refinery's 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 the refinery's complexity to promote operational efficiency and expand product range. The project also targets propylene production of 225,000 tons per year, which is the main raw material for the national petrochemical industry. The presence of this derivative product is projected to reduce import dependency while supporting the growth of the domestic manufacturing industry.

Furthermore, Nasir added that the operation of the Balikpapan RDMP project is expected to have a real impact on the wider community. “We hope that the realization of PT KPB's investment can reduce imports of LPG, fuel, and propylene. Thus, the products produced by KPB can be utilized for the greatest prosperity of the Indonesian people,” he added.

As part of the visit, the BKPM delegation directly observed the Main Control Room (MCR) of RDMP Balikpapan. In this control room, all integrated refinery operations are monitored through a modern digital system equipped with Distributed Control System (DCS) technology. In addition, BKPM also visited the Residue Fluid Catalytic Cracking (RFCC) unit, which is a top priority for the project, as it is capable of converting residue into high-value products with a capacity of 90 kbpd. The completion of the RFCC unit will add to the refinery's products, namely gasoline, Liquid Petroleum Gas (LPG), and plastic raw materials (propylene).

Beyond the technical aspects, this project also has broad socioeconomic impacts. With a Domestic Component Level (TKDN) of 35%, the involvement of local contractors and workers is an important part of the development. Thousands of local workers have been absorbed into this project, thereby boosting the economy in Balikpapan and East Kalimantan.

Vice President (VP) Legal & Relations of PT KPB, Asep Sulaeman, said that the RDMP project is part of a major transformation of the national energy industry. "The Balikpapan and Lawe-Lawe RDMPs are expected to be important milestones in strengthening energy security, reducing dependence on imports, and providing a multiplier effect for the regional and national economy. We ensure that every stage, from construction, commissioning, to start-up, is carried out in accordance with safety standards and brings significant benefits to the community," he concluded.