Balikpapan: After nearly a decade of development, the Refinery Development Master Plan (RDMP) Balikpapan project, the flagship initiative under the national RDMP programme of PT Pertamina (Persero), has entered its initial operation phase, marking a major milestone in Indonesia's refinery modernisation efforts.
According to BERNAMA News Agency, Pertamina corporate communications vice-president Muhammad Baron stated that the RDMP is a national strategic programme aimed at modernising Indonesia's existing refineries. "The programme aims to increase refining capacity, improve fuel quality to meet international standards, and enhance energy security and competitiveness," he said.
Baron explained that the Balikpapan refinery is currently producing 260,000 barrels per day, with expectations to increase its refining capacity to 360,000 barrels per day under the RDMP. Pertamina operates five other refineries across Indonesia, achieving a total production capacity of approximately 1.1 million barrels per day.
According to Pertamina data, the RDMP Balikpapan project was initiated around 2016 and progressed through several construction and commissioning phases before reaching operational readiness toward the end of 2025, culminating in its official inauguration this year. The project, supported by the construction and expansion of integrated energy infrastructures, was inaugurated by Indonesian President Prabowo Subianto last Monday.
The infrastructure developments include a single-point mooring facility with a capacity of 320,000 deadweight tonnage. This floating buoy system, anchored offshore of Kalimantan, allows very large crude carriers to moor and transfer crude oil to the refinery. Additionally, the project comprises two giant crude oil storage tanks at Lawe-lawe, each capable of holding one million barrels of crude oil.
Central to the project are the main refinery facilities, including the crude distillation unit and the residual fluid catalytic cracking complex, which form part of the Balikpapan refinery upgrade. These upgrades are detailed in Pertamina's RDMP documentation.
In addition to the refinery facilities, the integrated infrastructure includes other energy assets such as a 78-kilometre Senipah-Balikpapan gas pipeline that supplies gas for refinery operations, and the Tanjung Batu Fuel Terminal, serving as a receiving and distribution hub for fuel products to end customers in eastern Indonesia.
Baron highlighted that under the RDMP, Balikpapan refinery is also projected to significantly boost gasoline production from approximately 42,000 barrels per day to 142,000 barrels per day, and LPG production from approximately 48,000 tonnes per year to 384,000 tonnes per year. The project is set to improve fuel quality to Euro 5 standards and increase flexibility in processing crude oil and producing high-quality products.
The refinery will also produce petrochemical products, including 58,000 tonnes per annum of sulfur and 225,000 tonnes per annum of propylene, supporting downstream integration and value creation. "With the RDMP programme, Balikpapan refinery will be the most advanced and the biggest refinery in Indonesia," Baron said.
He added that the programme would enhance energy security for eastern Indonesia due to the increased refinery capacity, create jobs since the development phase, and boost the local economy with support for small and medium enterprises, shops, and supporting facilities such as restaurants, cafes, and hotels.