Pertamina's Balikpapan Energy Project Drives Local Economic Growth

Economic Impact on Local Communities

PT Pertamina (Persero)'s integrated energy infrastructure project in Balikpapan, East Kalimantan, is having a transformative impact on the local economy. The comprehensive development includes various components such as the Senipah Gas Pipeline, Lawe-lawe giant storage tanks, CDU (Crude Distillation Unit), RFCC (Residual Fluid Catalytic Cracking) Complex, and Tanjung Batu Fuel Terminal. This massive project is not only enhancing energy distribution in Eastern Indonesia but also creating substantial economic opportunities for local residents.

Boosting UMKM through Increased Demand

The presence of this major infrastructure project has significantly benefited local businesses, particularly micro, small, and medium enterprises (UMKM). Local food vendors, such as Yanti who runs a home-cooking style warung near the refinery, have seen increased customer traffic from project workers. "Alhamdulillah, we are grateful. Daily turnover has improved. Hopefully, Pertamina workers and contractors will continue to visit our warung even after the project is completed," Yanti shared. Similar positive impacts were reported by Tuti, owner of Warung Kube Mandiri, who experienced peak customer numbers during lunch hours.

Employment and Economic Multiplier Effects

According to Muhammad Baron, Vice President of Corporate Communication at Pertamina, the project has created considerable employment opportunities and stimulated local economic growth. During the construction phase, the project has absorbed approximately 24,000 workers, with the majority being local labor. In the operational phase, the refinery is expected to directly employ around 2,000 workers. Moreover, the project is anticipated to generate indirect employment and business opportunities across various supporting sectors.

Local Content Optimization

Pertamina has emphasized its commitment to supporting national industry through the implementation of a 35% local content (TKDN) rate during the refinery construction. This policy demonstrates the company's dedication to enhancing domestic industrial capabilities in both manufacturing and service sectors. By optimizing local content, Pertamina aims to strengthen the national industrial ecosystem and improve the country's competitiveness.

Conclusion

The Pertamina Balikpapan refinery project represents a significant investment in Indonesia's energy infrastructure while simultaneously driving local economic development. Through job creation, support for UMKM, and commitment to local content, the project is generating substantial positive impacts on the regional economy.