EXECUTIVE SUMMARY

As it reported in 2017, Indonesia demand for domestic fuel has reached 1,3 Million BOPD.
To fullfil its demand, Pertamina as a state-owned Oil company owns 6 Refinery Units (RU)
with total capacity reached 1.046 Million BOPD and still continue to running up until now. As
the fuel consumption grow exponentially every year, Since 2016 Pertamina has built
Refinery and Petrochemical Megaproject Directorate to manage giant-scale projects to
optimize its domestic crude refining product and to reduce the processing of imported
crude. Those projects are consist of 4 Refinery Capacity Development ( Cilacap, Balongan,
Dumai, and Balikpapan ) and 2 New Grass Root Refinery ( Tuban and Kuala Tanjung ).
According to this programme, the refinery processing capacity are expected to reach 1.8
Million BPD and the fuel itself would be 1.5 Million BPD from 600.000 BPD of fuel
production capacity.

RDMP ( Refinery Development Master Plan ) Balongan

Balongan RDMP project is divided into 3 phase. The first 2 phases are upgrading the total
capacity, by which would be processed into petrochemical products. These expected to be
completed in 2022. As for the third phase, Pertamina and Adnoc are planning to build
refinery which later would be integrated with Petrochemical in which collaborated with CPC
Taiwan. Currently, the phase one is still ongoing for Front End Engineering Design (FEED),
meanwhile phase two and phase three still on study basis. As for its first phase, the EPC
project was awarded to a joint-venture between PT. Rekayasa Industri and PT. Enivromate
Technology International.

RDMP Balikpapan

Similar to Balongan Refinery, RDMP Balikpapan has reached 17% for its progress realization
as per May 2020. The refinery processing capacity will be upgraded from 260.000 BPD to
360.000 BPD together with the fuel product quality will be optimize from Euro II eq., to Euro
V eq. It will be synergized with the New Crude Lawe-Lawe Tankage Facility with total
capacity of 2 Million barrel. This construction project was awarded to 4 Joint-Operation local
and international companies, which are SK Engineering, Hyundai Engineering, PT. Rekayasa
Industri, and PT. PP. The total amount of the contract is Rp. 57,8 trillion and would be
completed in 53 months.

NGRR Tuban

NGRR Tuban has already finished its land selection and acquisition phase and is now
preparing for GED ( General Engineering Design ) which consist of BED & FEED. GRR Tuban is
a form of a joint venture between Pertamina & Rosneft PJSC with the amount of share 55 %
and 45 %, respectively. With the investment value of Rp. 211,9 Trillion, this project will be
released for EPC tender in early 2022.
RDMP Cilacap

Its already announced that Pertamina has already terminated its partnership with Saudi
Aramco to build RDMP Cilacap. Meanwhile, Pertamina still looking for new partner to
accelerate the development process. Divided into 2 phases, its first phase is still on BED
( Basic Engineering Design ) phase. Meanwhile, simultaneously the second phase has
already finished its assignment for land acquisition. The investment value for this project is
estimated around USD 5,5 Billion.

Figure 1.1 MP 2 Execution Schedule Summary