Project Financing for RDMP Balikpapan Receives the Asset Award

Jakarta, August 1, 2024 - Pertamina continues its commitment to enhancing its processing capacity through the Refinery Development Master Plan (RDMP) projects in Balikpapan and Lawe-Lawe. This project is a key initiative for PT Kilang Pertamina Internasional (KPI).

"The RDMP Balikpapan and Lawe-Lawe project is the largest project currently undertaken by Pertamina," said the Corporate Secretary of KPI, Hermansyah Y Nasroen.

Hermansyah explained that this project aims to increase the Balikpapan Refinery processing capacity, improve product quality, and enhance processing complexity. Through this project, the refinery’s capacity will increase from 260,000 to 360,000 barrels per day. The quality of the products will also improve from Euro II to Euro V standards.

According to Hermansyah, the success of this project depends not only on physical progress.

"As with any project, financing aspects are also crucial. Financing will significantly determine whether the project can be completed on schedule," Hermansyah said.

As proof of KPI's capability in the financing managing aspect of the RDMP Balikpapan - Lawe-Lawe project, it has recently received recognition at the international “The Asset Triple A Sustainable Infrastructure Awards 2024”.

KPI's subsidiary, PT Kilang Pertamina Balikpapan (KPB), which manages the RDMP Balikpapan project, successfully received the Best Corporate Trust Mandate award from The Asset Triple A Sustainable Investing Awards 2024 for its role as the managing company of this National Strategic Project (PSN), securing project funding of USD 3.1 billion through HSBC.

"This award is a form of recognition of KPI's capability in managing large-scale projects from a financing perspective," Hermansyah explained.

The Asset Award is the most prestigious recognition in the banking, finance, treasury, and capital markets industries. Through the Sustainable Infrastructure Awards 2024, The Asset recognizes Asian institutions for their infrastructure development contributions. Infrastructure is vital for economic development and challenges in project development.

Previously, KPI secured funding from lenders such as Export Credit Agencies (KEXIM, K-SURE, and SACE) and 22 commercial banking institutions.

Director of  Finance of PT Pertamina (Persero), Emma Sri Martini, who received the award, stated that this project is one of Pertamina's commitments to ensuring energy sustainability and availability in Indonesia.

"We hope the RDMP Balikpapan project proceeds smoothly and contributes to achieving national energy resilience, independence, and sovereignty. This recognition is a tangible proof of Pertamina's commitment to supporting sustainable energy projects," said Emma.

Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, added that The Asset award for the RDMP Balikpapan project is a positive thing, reflecting the project's appeal to global investors, particularly in the financial and capital markets. "This award positively impacts not only the RDMP project and Pertamina but also the Indonesian economy, reflecting investor confidence in domestic projects. The Balikpapan refinery is one of the significant projects. We hope Pertamina's refinery projects can realize national energy independence," Fadjar emphasized.

The RDMP Balikpapan project will be an environmentally friendly refinery, significantly reducing emissions through energy efficiency in operations and the products produced, supporting the government’s Net Zero Emission (NZE) program.

PT Kilang Pertamina Internasional (KPI) is a subsidiary of Pertamina, focusing on oil and petrochemical processing following ESG (Environment, Social & Governance) principles. KPI is also listed in the United Nations Global Compact (UNGC) and is committed to the Ten Universal Principles of the UNGC in its operational strategy implementing the ESG aspects. KPI will continue to operate professionally to achieve its vision of becoming a world-class oil and petrochemical refining company with environmental awareness, social responsibility, and good corporate governance.**