Can Improve Processing Capacity, Minister Of Energy And Mineral Resources Arifin Tasrif Asks For Balikpapan RDMP Progress According To Target

Minister of Energy and Mineral Resources Arifin Tasrif and President Director of PT PLN Persero when visiting Kilag RDMP Balikpapan which is expected to be completed in stages in 2024-2025. (Photo: Ministry of Energy and Mineral Resources)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif reviewed the Balikpapan Refinery Development Master Plan (RDMP) project.

Just so you know, the RDMP project is designed to increase the processing capacity from 260 kilo barrels per day (kbpd) to 360 kbpd with an increase in quality from Euro II to Euro V.

This is my second visit here. The first visit around the location of this project is still flat ground, now many construction buildings have been built, hopefully this project will not be late," said Arifin, quoted on Saturday, April 8.

The Balikpapan RDMP project is one of the National Strategic Projects (PSN) implemented by PT Kilang Pertamina Balikpapan (KBI).

The projects include the construction of the New Workshop & Warehouse, Residual Fluid Catalytic Cracking (RFCC) Feed Tanks, Boilers, New Flare BPP II, FCC & FCC NHT, and Terminal Lawe-Lawe Facilities.

The Balikpapan RDMP project will be supported by funding from the Export Credit Agency and Commercial Bank with a funding target of 3.1 billion US dollars. This funding scheme is the first time a refinery project in Indonesia is funded by ECA.

The project with an investment value of 7.2 billion US dollars absorbs 20,250 workers in the project phase and 600 in the operating phase.

"This project is also encouraged to be able to absorb the domestic content level by 30-35 percent," continued Arifin.

Meanwhile, the President Director of PT Pertamina (Persero), Nicke Widyawati, explained that in addition to meeting national fuel needs, the Balikpapan refinery will also produce petrochemical products, namely Propylene with 225 KTPA which will become feedstock from New Polypropylene (PP) Balongan for the substitution of imported products.

"With progress overall as of March 2023 which has reached 62.13 percent, this PSN is targeted to be completed in stages by 2024-2025 to be able to immediately meet domestic energy needs," concluded Nicke.