Conducting Closing Project Financing, Pertamina Secures USD 3.1 Billion for Balikpapan Refinery RDMP Project Funding

Jakarta, June 24, 2023 - As part of the acceleration efforts for one of the National Strategic Projects (NSP), namely the Refinery Development Master Plan (RDMP) of Balikpapan Refinery, PT Pertamina (Persero) conducted the Project Financing Closing Ceremony for the Balikpapan Refinery RDMP project. This activity marks an important milestone in the project's development, as Pertamina has successfully secured project funding support of approximately USD 3.1 billion.

Pertamina’s Refining & Petrochemical Sub Holding through PT Kilang Pertamina Balikpapan as a subsidiary of PT Kilang Pertamina Internasional (KPI), has gained funding trust from lenders such as Export Credit Agency (KEXIM, K-SURE, SACE, and US EXIM), as well as 22 banking institutions.

The Balikpapan Refinery RDMP Project Financing Closing Ceremony was attended by the Deputy Minister I of State-Owned Enterprises, Pahala N. Mansury; President Director of Pertamina, Nicke Widyawati; Director of Finance of Pertamina, Emma Sri Martini; President Director of PT Kilang Pertamina Internasional, Isnanto Nugroho S; President Director of PT Kilang Pertamina Balikpapan, Feri Yani; Director of K-Sure, Park Sig-Weon; Vice President & Head of Project Finance Group of K-EXIM, Kim Hyung Jun; Head of APAC SACE, Marco Ferioli; along with 22 representatives from commercial banks. It was held at the Grha Pertamina Ballroom on Friday (23/06).

In his speech, Deputy Minister I of State-Owned Enterprises, Pahala N Mansury, expressed that with this financial support, Pertamina will be able to complete the Balikpapan Refinery RDMP project development, which will undoubtedly have a positive impact on national energy resilience.

"The Balikpapan Refinery RDMP Project financing success is certainly an achievement for Pertamina. Congratulations to KPI and the entire team. This is the largest project financing in Indonesia to date," said Pahala.

Today's achievement proves that Pertamina is regarded as a reliable global energy company that can provide guarantees to lenders. Furthermore, Pahala gave directions for Pertamina to maintain the lenders’ trust by completing the project according to the schedule.

Improve Product Quality and Reduce Emissions

As an NSP, the Balikpapan Refinery RDMP Project is a crucial project for strengthening national energy resilience by increasing the crude oil processing capacity from 260,000 barrels per day to 360,000 barrels per day. The refinery will also support motor vehicle emissions reduction by improving environmentally friendly petroleum products quality to EURO V standards.

In the future, the Balikpapan Refinery will also be able to increase its Nelson Complexity Index or the refinery's ability to process bottom products as much as possible, rising from 3.7 to 8.

Feri Yani, President Director of PT Kilang Pertamina Balikpapan, stated that collaboration with trusted partners would accelerate project completion.

"I would also like to express my gratitude to the entire project team who have worked hard to achieve the project progress target. Solid teamwork and exceptional dedication have ensured the project’s smooth progress, even during the pandemic, where the construction project progress (Engineering Procurement Construction/EPC) reached 74.03% as of June 2023," explained Feri.

Fadjar Djoko Santoso, VP of Corporate Communication of Pertamina, stated that the Balikpapan Refinery RDMP would become one of the Energy Resilience pillars in the Central Region of Indonesia, supplying energy not only to Kalimantan but also to parts of Sumatera, Sulawesi, and even Papua.

Fadjar also mentioned that the Balikpapan Refinery RDMP aligns with Pertamina's commitment to maintaining national energy resilience and supporting the Net Zero Emission (NZE) 2060 target.

"With the increased refinery capacity, Pertamina will be able to produce more environmentally friendly fuel, which undoubtedly supports Indonesia's NZE achievement," explained Fadjar.

PT Kilang Pertamina Internasional is a subsidiary of PT Pertamina (Persero) engaged in the primary business of oil refining and petrochemicals following the ESG (Environmental, Social & Governance) principles. PT KPI is also registered with the United Nations Global Compact (UNGC) and is committed to the UNGC's Ten Universal Principles in its operational strategy as part of implementing ESG aspects. PT KPI will continue to conduct its business professionally to realize its vision of becoming a world-class oil refinery and petrochemical company with environmental awareness, social responsibility, and good corporate governance.**

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