TEMPO.CO, Jakarta - State energy company Pertamina is fast-tracking the Refinery Development Master Plant (RDMP) for Balikpapan V refinery unit in East Kalimantan. Phase I is will be done in 2019 while phase II is scheduled for 2021.

Pertamina's director of processing and petrochemicals mega project, Rachmad Hardadi, said the project costs US$2.6 billion or Rp34 trillion. "It is a long-term investment," Rachmat said in Balikpapan last weekend.

According to Rachmat, the refinery's first phase development will raise its production capacity from 260,000 bpd to 360,000 bpd. By 2019, this plant will produce fuel with Euro 2 quality. The second phase will result in an ability to produce Euro 4 and Euro 5 quality by 2021.

"In accordance with the public need, fuel quality will be improved," Rachmat said.

Pertamina will fund the refinery development using its own budget. Right now, the project has entered the demolition stage, demolishing several warehousing facilities. Pertamina is also constructing a 24-story apartment building for its employees.

"The apartments will be occupied by employees who initially lived in our housing facility in Parikesit, Balikpapan, which will be turned into warehouses and workshops," Rachmat said.

SG WIBISONO