Committed to Supporting the Use of Domestic Products, This is the Local Content (TKDN) of the RDMP Balikpapan Project
Jakarta, October 5, 2024 – PT Kilang Pertamina Internasional (KPI) demonstrates its commitment to supporting local industries through domestic product use, particularly in the Refinery Development Master Plan (RDMP) Balikpapan project. The largest project managed by KPI's subsidiary PT Kilang Pertamina Balikpapan (KPB), has achieved a Domestic Component Level (TKDN) of 35%.
"The domestic product use in the RDMP Balikpapan project reflects KPI's support for the local industry growth," said the Corporate Secretary of KPI, Hermansyah Y Nasroen.
The RDMP Balikpapan project is the most complex and highest-investment national strategic project currently managed by Pertamina, with an investment value of USD 7.4 billion. According to Hermansyah, using domestic products in this project will undoubtedly create a multiplier effect for local industries.
"One of the RDMP Balikpapan project goals is to increase refinery complexity, achieved by upgrading processing technologies. However, KPI is also committed to using domestic products, ensuring that this project directly impacts local industries," Hermansyah explained.
As with other oil and gas industry projects, this project also involves high-tech materials and equipment. However, according to Hermansyah, KPI still prioritizes the use of domestic products.
"If these products can be produced locally and meet or even exceed quality standards at competitive prices, the domestic product use will be the primary option," Hermansyah added.
In the RDMP Balikpapan project, domestic products are primarily used for welding carbon steel pipes & fittings, pumps, cables, transformers, and manual valves.
To ensure the use of domestic products in goods and services procurement within the company, KPI has implemented guidelines and governance that regulate the use of local products, according to Hermansyah.
These internal company guidelines are based on Government Regulation No. 29 of 2018 on Industry Empowerment and its implementing regulations.
"This governance also represents the company’s compliance with government regulations," said Hermansyah.
Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, added that the Pertamina Group plays a crucial role in driving national economic growth. In addition to providing energy for public needs, the TKDN aspect contributes positively to state revenue.
"Pertamina applies the use of domestic components, so as a state-owned enterprise (BUMN), we can contribute more to the country and society," he explained.
KPI, a subsidiary of Pertamina, runs its core business in oil and petrochemical refining based on ESG (Environmental, Social, and Governance) principles. KPI is also registered with the United Nations Global Compact (UNGC) and is committed to the Ten Universal Principles of the UNGC in its operational strategy as part of ESG implementation. KPI will continue to conduct its business professionally to realize its vision to be a world-class oil and petrochemical refining company while upholding environmental and social responsibility, as well as good corporate governance.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina’s business lines and operations.**