Indonesia's Energy Milestone: RDMP Balikpapan Refinery Inaugurated

Strategic Energy Infrastructure Enhancement

President Prabowo Subianto officially inaugurated Pertamina's Refinery Development Master Plan (RDMP) Balikpapan on January 12, 2026, marking a significant milestone in Indonesia's energy sector ¹

. This $7.4 billion strategic project represents a crucial step towards achieving national energy independence and reducing fuel imports ³

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https://finance.detik.com/energi/d-8303207/prabowo-bakal-resmikan-kilang-raksasa-balikpapan-kita-akan-hemat-devisa

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Key Upgrades and Modernization

The RDMP Balikpapan project has successfully modernized Indonesia's largest oil refinery, achieving several key improvements ²

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1. Capacity Increase: Refining capacity expanded from 260,000 BOPD to 360,000 BOPD
2. Quality Enhancement: High-value product output increased from 75.3% to 91.8%
3. Environmental Compliance: Upgraded to Euro V emission standards
4. Infrastructure Integration: Includes 78 km gas pipeline from Senipah to Balikpapan
5. Storage Capacity: Additional crude oil storage capacity of 2 million barrels

Economic and Energy Security Impact

The modernization of the Balikpapan refinery is expected to have significant economic and energy security implications for Indonesia ⁴

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• Reduced Import Dependence: Increased domestic refining capacity will decrease fuel imports
• Energy Security: Enhanced ability to meet domestic fuel demands
• Economic Benefits: Projected savings in foreign exchange
• Environmental Gains: Lower emissions due to Euro V compliance

Historical Context and Future Implications

This project marks the second major refinery development in Indonesia's history, following the first RDMP inauguration in 1994 by President Soeharto ⁵

. The successful completion of this project demonstrates the government's commitment to energy infrastructure development and sets a precedent for future investments in the sector.