RDMP Balikpapan Basic Foundation For Import Foreign Exchange Savings Up To IDR 1,134 Trillion

JAKARTA - Executive Director of the ReferMiner Institute, Komaidi Notonegoro, emphasized that the construction of the Balikpapan Refinery Development Master Plan (RDMP) project by Pertamina is an important step in strengthening the capacity of the national refinery industry and accelerating the Indonesian oil and gas downstream agenda.

According to him, the existence of the refinery industry has a strategic role in the Indonesian economy, and the modernization of the Balikpapan Refinery is on the right track to answer the increasing national energy needs.

The refinery industry has been the main support for the economy since the beginning of national development. Downstream oil and gas has had a big economic impact, both directly and indirectly. The Balikpapan RDMP is a very strategic project because it strengthens the downstream foundation," said Komaidi to the media in Jakarta, Monday, December 1.

Based on the ReforMiner analysis, downstream oil and gas has a broad multiplier effect. Any additional IDR 1 trillion investment in the refinery industry can create economic benefits of up to IDR 9.16 trillion in various economic sectors. With the investment value of the Balikpapan RDMP which reaches more than 7 billion US dollars, this project is considered to be a motor of new economic growth that will strengthen the region and nationally.

In terms of linkage, the refinery industry has a very wide connection. There are 93 economic sectors that supply input to refineries, and 183 other sectors that use refinery products. So, when refinery capacity rises, the effect immediately drives almost the entire national economic structure," explained Komaidi.

The Balikpapan RDMP will increase production capacity from around 260 thousand barrels per day to 360 thousand barrels per day, as well as produce Euro V standard fuel with sulfur content below 10 ppm. New technologies such as Residual Fluid Catalytic Cracking (RFCC), Naptha Block, and Hydrotreating Unit will ensure a more environmentally friendly product quality.

Komaidi assessed that the modernization of this refinery is very relevant to national energy challenges. Currently, Indonesia still has to import around 0.4 million barrels per day of fuel to meet the needs of 1.5 million barrels per day. The increase in Balikpapan RDMP capacity will reduce import figures and improve the oil and gas trade balance.

This project is not only the modernization of refineries, but also the strengthening of national energy security. Fuel imports that have been suppressing the country's foreign exchange can be significantly reduced. At the same time, Indonesia will have better quality fuel products, have the standard of Euro V, and are more environmentally friendly," he said.

ReferMiner also noted that downstream oil and gas for the 2025-2040 period has the potential to save import foreign exchange of up to 73.3 billion US dollars or around Rp1,134 trillion. According to Komaidi, the Balikpapan RDMP is an important foundation to achieve these benefits.

In addition to foreign exchange savings, the refinery industry contributed greatly through job creation, regional economic growth, and state revenues. In 2022 alone, Pertamina's refinery sector revenue reached around Rp572 trillion and contributed more than Rp49 trillion in taxes.

"With the completion of the Balikpapan RDMP, the contribution of the refinery industry's economy will certainly increase. Therefore, the government needs to ensure policies that support the development of the refinery industry remain consistent, including incentives and regulations that make projects like this sustainable," said Komaidi.

He closed by emphasizing that the Balikpapan RDMP is proof that Indonesia can build a stronger, independent, and competitive energy industry. This is a strategic investment for Indonesia's energy future," he said.