Indonesian President Prabowo Subianto has officially inaugurated Pertamina’s upgraded Balikpapan refinery in East Kalimantan province, representing a major boost to the country’s oil refining capacity.
This $7.4bn upgrade is managed by Kilang Pertamina Internasional and aims to strengthen Indonesia’s energy independence by expanding domestic refining capabilities.
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The facility, now capable of processing 360,000 barrels per day (bpd), up from its previous 260,000 barrels, is the largest refinery in Indonesia.
Indonesia’s Energy Minister Bahlil Lahadalia highlighted that the expansion would significantly reduce reliance on fuel imports.
The upgraded refinery is expected to produce 5.8 billion litres of gasoline annually, which could lower Indonesia’s gasoline imports from 24 billion to 19 billion litres.
Additionally, Bahlil announced that rising production levels from the refinery, coupled with the country’s biodiesel mandate, would eliminate the need for gas oil imports.
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By GlobalDataBahlil said: “In 2027, God willing we no longer import jet fuel, only importing crude oil.”
The comprehensive modernisation project began in 2019 and is classified as a National Strategic Project.
It includes enhancements such as the ability to produce lower-sulphur fuel and an increase in liquefied petroleum gas (LPG) production capacity from 48,000 to 384,000 tonnes (t) annually.
This increase could potentially decrease LPG imports by 4.9%. Furthermore, a new petrochemical production unit at the facility is set to produce 283,000t of petrochemicals each year.
The project also features advanced processing units that adhere to Euro V emission standards, supporting environmental goals while meeting growing domestic demand.
Bahlil reported an upswing in Indonesia’s upstream oil performance, noting a recovery after a decade of unmet national oil lifting targets.
He cited that oil production reached 580,000bpd in 2024 and is projected to increase further by 2026.
This improvement results from policy and operational measures such as reactivating idle wells and deploying new technologies.
President Prabowo has prioritised energy security as a key focus for his administration.
By reducing reliance on imported fuels, Indonesia aims to shield its economy from global market volatility and reinforce national resilience.
In November 2025, Pertamina initiated operations for the residual fluid catalytic cracking unit at the Balikpapan refinery.
The residual fluid catalytic cracking (RFCC) complex is a central component of the Balikpapan refinery development master plan and represents a significant step forward in Pertamina’s effort to modernise its refineries.
Functioning as the main processing unit, the RFCC complex is engineered to maximise the conversion of residual oil into high-value fuel and petrochemical products.
This component is critical for achieving enhanced refining capabilities and supporting efforts to meet Euro V standards.
