The Refinery Development Master Plan (RDMP) project at Kilang Balikpapan is set to boost gasoline and gasoil series production while also expanding into petrochemical products, solidifying PT Kilang Pertamina Internasional’s (KPI) position in the petrochemical business.
“Operating petrochemical production units is not new to KPI,” KPI Corporate Secretary, Hermansyah Y. Nasroen said on Friday, April 19, 2024.
KPI has operated petrochemical production units in several existing refineries. The company owns refineries that have produced petrochemicals, including the Polypropylene Plant at Refinery Unit (RU) Plaju, producing Polytam (Pertamina Polypropylene), the Paraxylene Plant at RU Cilacap, producing Paraxylene and Benzene, and the Olefin Conversion Unit (OCU) at RU Balongan, producing Propylene.
“After the RDMP Balikpapan project is completed, in addition to meeting national fuel needs, the Balikpapan refinery will also produce petrochemical products, namely Propylene, totaling 225 thousand tons per year. This product will serve as feedstock for New Polypropylene (PP) Balongan to substitute imported products. NEW PP Balongan is managed by Polytama Propindo, an affiliate of Pertamina,” Hermansyah said.
The processing capacity of the Balikpapan refinery, which has been 260 thousand barrels per day, will increase to 360 thousand barrels per day. Additionally, there will be an improvement in the quality of fuel products from Euro II to Euro V.
The petrochemical product market in Indonesia still has significant potential. Data from the Reforminer Institute shows that the installed capacity of refineries, both owned by Pertamina and other private entities, has not been able to meet the national petrochemical demand. Approximately 70 percent of the domestic petrochemical demand must be fulfilled through imports.
In addition to increasing the processing capacity of Kilang Balikpapan, the operation of petrochemical production units at the Balikpapan refinery will also support the development of human resource competencies.
“The operation of petrochemical production units will be a new endeavor at the Balikpapan refinery, and this will serve as a platform for knowledge transfer on operating petrochemical production units from workers at other refinery units that already have petrochemical production units,” Hermansyah said.
KPI is a subsidiary of State energy company PT Pertamina engaged in oil refining and petrochemical business in accordance with the principles of ESG (Environment, Social & Governance).
KPI is also registered with the United Nations Global Compact (UNGC) and is committed to the Ten Universal Principles of the UNGC as part of its operational strategy in implementing ESG aspects.
