Prabowo Inaugurates Balikpapan Refinery, Launches Operations of Indonesia’s Largest Oil Facility
Jakarta, The Gulf Observer: President Prabowo Subianto on Monday inaugurated the Refinery Development Master Plan (RDMP) project at Refinery Unit V in Balikpapan City, East Kalimantan, marking the start of operations at Indonesia’s largest oil refinery.
In a livestreamed speech observed in Jakarta, President Prabowo said the Balikpapan refinery, operated by state-owned energy company Pertamina, is the first RDMP project to be inaugurated in Indonesia in the past 32 years.
The President welcomed the completion of the facility and expressed hope that it would significantly reduce Indonesia’s dependence on imported fuel, citing the country’s vast potential in biodiesel, geothermal, solar and hydropower energy. He stressed the importance of effectively managing and utilizing Indonesia’s abundant energy resources to achieve energy self-reliance.
“We must not depend on imported energy. This nation aspires to be self-reliant and has the capacity to achieve it, as our country is blessed with abundant resources,” Prabowo said.
Energy and Mineral Resources Minister Bahlil Lahadalia confirmed that the Balikpapan facility is Indonesia’s largest oil refinery, developed with an investment of Rp123 trillion, or approximately US$7.3 billion.
He said the government considers the refinery a strategic national asset aimed at modernizing the oil industry, increasing processing capacity, producing higher-quality and more environmentally friendly fuel, supporting downstream development in the petrochemical sector, and strengthening national energy security.
The Balikpapan refinery has a processing capacity of up to 360,000 barrels of oil per day, equivalent to about one quarter of Indonesia’s national fuel demand. Its output includes fuel products, liquefied petroleum gas and petrochemicals.
The facility is projected to reduce fuel imports by Rp68 trillion, contribute Rp514 trillion to gross domestic product, lower sulfur content in fuel products to 10 parts per million, and increase the yield of high-value products to 91.8 per cent.
