Indonesian President Prabowo Subianto inaugurates Pertamina’s upgraded Balikpapan refinery, boosting the country’s oil refining capacity. The $7.4bn upgrade managed by Kilang Pertamina Internasional aims to enhance energy independence and reduce fuel imports. The facility now processes 360,000 bpd, increasing gasoline production and decreasing reliance on imports.

The upgraded refinery in East Kalimantan province is set to produce 5.8 billion litres of gasoline annually, potentially reducing gasoline imports by 5 billion litres. Indonesia’s Energy Minister highlighted the expansion’s significance in decreasing gas oil imports. The project, a National Strategic Project, includes enhancements like lower-sulphur fuel production and increased LPG and petrochemical capacity.

President Prabowo emphasizes energy security by reducing fuel imports to shield the economy from global market volatility. The modernisation project at the Balikpapan refinery includes Euro V emission-compliant processing units to meet domestic demand sustainably. Upstream oil performance in Indonesia has improved, with production reaching 580,000 bpd in 2024 and projected growth by 2026 due to policy and operational measures.

Pertamina’s residual fluid catalytic cracking unit at the Balikpapan refinery signifies a significant step in modernising Indonesia’s refining capabilities. The RFCC complex is crucial for enhancing fuel and petrochemical production, supporting efforts to meet Euro V standards. The inauguration of the upgraded refinery marks a milestone in Indonesia’s pursuit of energy independence and national resilience.

Read more at Yahoo Finance: Indonesia officially opens upgraded Balikpapan refinery