TKDN Balikpapan Refinery Reaches 35 Percent

Oil refinery (photo: intermediate dock)

PT Kilang Pertamina Internasional (KPI) reported the use of the Domestic Component Level (TKDN) in the Balikpa Master Plan Refinery Development Plan (RDMP) project managed by PT Kilang Pertamina Balikpapan (KPB) has reached 35 percent.

"The use of domestic products in the Balikpapan RDMP project is a form of KPI's support to also develop domestic industries," said KPI Corporate Secretary Hermansyah Y Nasroen, quoted on Friday, October 4.

Herman explained that the Balikpapan RDMP project is the most complex national strategic project and the largest investment value managed by Pertamina today. The investment value for this project reaches 7.4 billion US dollars. The use of domestic products in this project, according to Hermansyah, will certainly provide a multiplier effect for the domestic industry.

"The purpose of the Balikpapan RDMP project is to increase the complexity of the refinery. This can be achieved by increasing processing and processing technology in refineries. However, KPI is also committed to using domestic products. Thus this project also has a direct impact on domestic industries," explained Hermansyah.

Like other oil and gas projects, this project also involves materials and high-tech equipment. However, according to Hermansyah, KPI also prioritizes the use of domestic products in the project.

"If these products can be produced and have equal quality and even better prices, of course, the use of domestic products will be the main option," said Hermansyah.

In the Balikpapan RDMP project, the main domestic products are used mainly on welding carbon steel pipes & fittings, pumps, cables, transformers andvalve manuals.

To ensure the procurement of domestic products in the procurement of goods and services within the company, according to Hermansyah, KPI also has guidelines and governance that regulate the provisions for the use of domestic products.

The company's internal guidelines refer to Government Regulation No. 29 of 2018 concerning Industrial Empowerment and its derivative regulations.

"This managed data is also a form of company compliance with Government regulations," concluded Hermansyah.