Megaproject Refinery and Petrochemical

Pertamina currently manages projects of massive scale in the refinery sector with a view to increase refinery capacity while supporting business development in the Pertamina petrochemical business. In October 2016, Pertamina formed the Directorate of Refinery and Petrochemicals Mega Projects (MP2) focusing on addressing the mega projects which consist of the revitalization program of existing refineries (Residual Fuel Catalytic Cracking/RFCC Cilacap projects, Project Blue Sky Cilacap/PLBC, and Project Refinery Development Master Plan/RDMP at Balikpapan, Cilacap, Dumai and Balongan refineries, and the construction of new refinery (Grass Root Refinery/ GRR).

Based on the roadmap of increasing the capacity of Pertamina refineries, the fuel production target after the completion of RFCC, PLBC, RDMP and New GRR projects will be 2 million bpd by 2025. The realization of this project will mean the liberation of Indonesia from a dependence on fuel imports and produce significant revenues and contribution to the state in the form of foreign currencies. In addition, the construction of a new oil refinery also has the potential to expand the Indonesian economy through the creation of added value in the downstream sector by integrating oil refineries with petrochemicals.