Jakarta, October 10, 2024 - PT Kilang Pertamina Internasional (KPI) has reaffirmed its commitment to support the Indonesian government's program aimed at reducing carbon emissions through the development of environmentally friendly fuel production facilities. This initiative is part of the company's Long-Term Plan (RJPP), which includes the establishment of green refineries to meet the Net Zero Emission target set for 2060.
KPI's President Director, Taufik Aditiyawarman, announced that several eco-friendly refinery projects are currently underway, including the Cilacap Refinery Stage 2, projected for completion in 2027 with a production capacity of 6,000 barrels per day (bpd) of Hydrotreated Vegetable Oil (HVO). The first stage has already been completed, with a capacity of 3,000 bpd. Overall, the Cilacap Refinery is one of Pertamina's largest, capable of processing 348,000 barrels per day.
Additionally, the Plaju refinery is expected to be operational by 2030 with a biofuel processing capacity of 20,000 bpd, while the Dumai and Balikpapan refineries are slated for completion in 2031 and 2034, respectively, with capacities of 30,000 bpd each.
Taufik also indicated that KPI is prepared to launch low-sulfur diesel fuel products if mandated by the government. Currently, the Balongan refinery is ready to produce diesel with a sulfur content of 10 ppm, and the Balikpapan refinery is expected to begin operations in 2025, producing EURO 5 compliant fuels.
In producing biofuels, KPI utilizes various methods, including co-processing vegetable raw materials with conventional feedstock to produce Sustainable Aviation Fuel (SAF). Modifications have been made to the THDT unit at the Cilacap refinery to facilitate this process, which has a capacity of 9,000 bpd.
According to Arie Rachmadi, a Senior Researcher at the National Research and Innovation Agency (BRIN), the use of biofuels is a crucial step in reducing emissions from vehicles. He emphasized that Indonesia is on the right track with its biodiesel program, aligning with global trends towards biofuel adoption.
However, challenges remain, particularly regarding raw material supply and high production costs. Ali Ahmudi Achyak, Executive Director of the Center for Energy Security Studies (CESS), highlighted the need for government support and incentives to ensure the availability of feedstock and to encourage the growth of the biofuel sector.