The Government of Indonesia has inaugurated the upgraded Balikpapan refinery, following a USD7.4 billion redevelopment that lifts its processing capacity to 360,000 barrels per day, up from 260,000 bpd. Operated by Pertamina, the facility is now the country’s largest refinery and a central pillar of Indonesia’s strategy to reduce reliance on imported refined fuels.
Also, with higher refinery output and Indonesia’s biodiesel blending mandate, the government expects the country to eliminate imports of gasoil and jet fuel by 2027, leaving crude oil as the main remaining import.
The Balikpapan upgrade forms part of a broader effort to strengthen domestic energy security as fuel demand rises. Alongside downstream investments, Indonesia is also seeking to reverse declining crude oil production by opening new exploration acreage, including multiple new blocks and previously untapped basins, to attract upstream investment and curb long-term import dependence.
