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Pertamina’s Balikpapan Energy Project Boosts Local Economy

The Jakarta Globe
January 15, 2026 | 2:37 pm
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A street food vendor prepares tofu dishes at his cart near the Pertamina Balikpapan refinery area in East Kalimantan. (Photo Courtesy of Pertamina)
A street food vendor prepares tofu dishes at his cart near the Pertamina Balikpapan refinery area in East Kalimantan. (Photo Courtesy of Pertamina)

Jakarta. Pertamina reaffirmed its commitment to delivering tangible benefits to the national economy through the development of an Integrated Energy Infrastructure project at the Balikpapan refinery.

The upstream-to-downstream integrated project includes the Senipah gas pipeline, the Lawe-Lawe large-capacity storage tanks, a Crude Distillation Unit (CDU), a Residual Fluid Catalytic Cracking (RFCC) Complex, and the Tanjung Batu fuel terminal. Once operational, the facilities are expected to support energy distribution across eastern Indonesia.

Beyond strengthening energy supply, the project has also generated economic spillovers for surrounding communities. Yanti, a food stall owner near the refinery site, said daily foot traffic has increased as construction workers frequent her business, helping sustain household income during the project period.

“Alhamdulillah, we are grateful. There is a daily cash flow. Hopefully, Pertamina workers and Pertamina Hulu Mahakam staff will continue having lunch at nearby stalls even after construction is completed,” Yanti said.

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Similar benefits have been felt by other micro and small enterprises. Tuti, owner of Warung Kube Mandiri in Mekar Sari, East Kalimantan, said her eatery is often packed during lunch hours by refinery project workers.

“Lunch hours are very busy; sometimes we even run out of seats. The project really helps. We hope it continues, so more people keep coming,” she said.

Pertamina’s Balikpapan Energy Project Boosts Local Economy
Motorcycle riders pass the Pertamina Balikpapan refinery complex in East Kalimantan, as workers commute around the Integrated Energy Infrastructure project that supports fuel processing and distribution in eastern Indonesia. (Photo Courtesy of Pertamina)

Pertamina Vice President of Corporate Communication Muhammad Baron said the project has helped create jobs and stimulate local economic growth. During the construction phase, the national strategic project absorbed around 24,000 workers, most of them domestic labor. In the operational phase, the refinery is projected to employ about 2,000 workers directly, while also creating indirect employment opportunities across supporting sectors.

“Projects developed by Pertamina are not only focused on strengthening national energy security, but also on delivering real multiplier effects for communities,” Baron said.

He added that local businesses have been involved across the project’s supply chain, from supporting services to logistics and consumption needs during both construction and operations, contributing positively to East Kalimantan’s broader economic growth.

Baron also noted that Pertamina has maintained the local content requirement (TKDN) at around 35% throughout the refinery development. The policy reflects the company’s commitment to supporting domestic manufacturing and services so they can grow alongside national strategic projects, strengthening the domestic industrial ecosystem and national competitiveness.

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