That’s a significant development for Pertamina and Indonesia’s refining sector. Pertamina, the state-owned oil company of Indonesia, has secured a $3.1 billion financing deal for the upgrade of its Balikpapan refinery. The financing package involves export credit agencies from South Korea, Italy, and the United States, as well as 22 commercial banks.
The funds will be utilized to expand the capacity of the Balikpapan refinery from 260,000 barrels per day (bpd) to 360,000 bpd. Additionally, the upgraded refinery will be capable of producing fuel that adheres to Euro V emission standards, which are more environmentally friendly.
By increasing its capacity and upgrading the refinery to meet higher emission standards, Pertamina aims to produce cleaner fuels that align with Indonesia’s commitment to achieving net-zero emissions. This development highlights Pertamina’s efforts to enhance its refining capabilities and contributes to Indonesia’s environmental goals.