Balikpapan Refinery RDMP Development Targets TKDN 30 To 35 Percent

RDMP Balikpapan Refinery. (Doc. ESDM)

JAKARTA - As one of the largest investment projects in Indonesia, the Balikpapan Refinery Development Master Plan (RDMP) project, namely the development of oil refineries and petrochemicals in Balikpapan, will certainly provide a multiplier effect for regional economic growth by involving local companies, creating local jobs, and targeting a domestic component level (TKDN) of 30-35 percent.

Head of the Communications, Public Information Services and Cooperation Bureau of the Ministry of Energy and Mineral Resources Agus Cahyono Adi emphasized that the Balikpapan RDMP project is one of the national strategic projects prioritized by the government.

"The government continues to support Pertamina in completing the Balikpapan RDMP project. We are sure that this project will provide great benefits to the nation and state," said Agus, Saturday, March 30.

Agus explained, with the addition of national fuel, LPG, and petrochemical production, it is hoped that it can save Indonesia's trade balance deficit of up to 2 billion US dollars per year.

Just so you know, the RU V Balikpapan refinery is one of the operational units of the Pertamina International refinery whose products are distributed to the eastern part of Indonesia, which is 2/3 of the Republic of Indonesia, and several products are distributed to western Indonesia and exported.

This refinery has been operating since 1922 and currently supplies up to 26 percent of the total fuel needs throughout Indonesia. The RU V location is very strategic to supply fuel needs in the Eastern Indonesia region, and is supported by a good distribution network, including distribution pipes, tankers, and land transportation modes.

Agus added that the Pertamina Balikpapan Refinery is trusted to increase capacity, complexity and quality so that the Balikpapan RDMP project runs more agile and fast.

"The project will increase refinery capacity from 260,000 barrels per day to 360,000 barrels per day, as well as improve product quality and reduce the cost of fuel oil production (BBM)," he continued.

This will encourage increased foreign exchange and tax revenue, and help realize energy independence and reduce the trade balance deficit or current account deficit (CAD) by significantly reducing imports of fuel and petrochemical products.

"This project carries aspects of sustainability and the environment by producing high-quality products with a standard of Euro 5 which has a lower sulfur content, so it is more environmentally friendly," concluded Agus.