Indonesia officially opens upgraded Balikpapan refinery

Core Insights - The inauguration of Pertamina's upgraded Balikpapan refinery marks a significant enhancement in Indonesia's oil refining capacity, with an investment of $7.4 billion aimed at boosting energy independence [1] - The refinery's processing capacity has increased to 360,000 barrels per day from 260,000 barrels, making it the largest refinery in Indonesia [1] Group 1: Refinery Upgrade and Production - The upgraded refinery is expected to produce 5.8 billion liters of gasoline annually, reducing gasoline imports from 24 billion to 19 billion liters [2] - The modernization project includes the ability to produce lower-sulphur fuel and an increase in liquefied petroleum gas (LPG) production capacity from 48,000 to 384,000 tonnes annually [3] - A new petrochemical production unit at the facility is set to produce 283,000 tonnes of petrochemicals each year [4] Group 2: Energy Independence and Policy Impact - The expansion is projected to decrease LPG imports by 4.9% and aims to eliminate the need for gas oil imports due to rising production levels and the biodiesel mandate [2][4] - Indonesia's oil production is expected to reach 580,000 barrels per day in 2024, with further increases projected by 2026, attributed to policy measures and new technologies [5] - The focus on energy security is a priority for the administration, aiming to reduce reliance on imported fuels and enhance economic resilience [5] Group 3: Environmental and Technological Advancements - The refinery features advanced processing units that comply with Euro V emission standards, supporting environmental goals while meeting domestic demand [4] - The operationalization of the residual fluid catalytic cracking unit in November 2025 is a key component of the refinery's modernization efforts [6]