On January 12, 2026, Indonesian President Prabowo Subianto inaugurated the $7.4 billion upgrade of the Balikpapan Refinery, owned by state-owned energy company PT Pertamina. This upgrade boosts the refinery’s capacity from 260,000 to 360,000 barrels per day, making it the largest oil refinery in the archipelago nation to date, according to Reuters.
Indonesian President Prabowo Subianto, photographed on December 10, 2025. Photo: Alexander Zemlianichenko/Pool via REUTERS/File Photo
As reported by Hydrocarbonengineering, President Prabowo Subianto emphasized that the development of integrated energy infrastructure marks Indonesia’s progress in maintaining sustainable energy independence for its people, industries, and national economy.
“Today, we inaugurate the Balikpapan Refinery as part of the Asta Cita program, aimed at achieving energy independence for the Republic of Indonesia. With the Balikpapan Refinery in operation, we can reduce reliance on imported fuel and liquefied gas while producing Euro V-compliant, environmentally friendly products,” stated Minister of Energy and Mineral Resources Bahlil Lahadalia, as reported by Antaranews.
The Balikpapan Refinery is expected to produce 360,000 barrels per day, meeting Euro V standards.
Minister Bahlil added that Indonesia will also halt diesel imports, thanks to increased production from the refinery upgrade and the country’s mandatory biodiesel usage regulations.
What Does Euro V Fuel Mean?
“The Balikpapan Refinery’s products will be of higher quality, meeting Euro V standards, which means they are more environmentally friendly and reduce emissions,” said Simon Aloysius Mantiri, President Director of Indonesia’s state-owned oil and gas company PT Pertamina.
The Balikpapan Refinery in East Kalimantan, Indonesia, photographed in 2023. Source: REUTERS/Willy Kurniawan
Euro V (Euro 5) is one of the European Union’s (EU) stringent vehicle emission standards, designed to reduce air pollution from motor vehicles. It applies to passenger cars and light commercial vehicles, focusing on key pollutants: Carbon monoxide (CO), Hydrocarbons (HC), Nitrogen oxides (NOx), and particulate matter (PM).
Euro 5 is a critical step before transitioning to Euro 6, which imposes even stricter NOx limits, reflecting the EU’s commitment to reducing transport emissions.
Euro V-compliant fuel from the Balikpapan Refinery ensures two key factors:
Ultra-Low Sulfur Content: Typically below 10 ppm (parts per million), also known as ultra-low sulfur diesel (ULSD). Compared to Euro II standards, Euro V reduces sulfur content by hundreds of times, significantly cutting harmful emissions like SOx (sulfur oxides), which cause acid rain and air pollution.
Reduction of Other Pollutants: Cleaner fuel with fewer impurities helps vehicles meet Euro 5 emission standards (or equivalent) by more effectively reducing NOx, PM, HC, and CO emissions.
To produce Euro V-compliant fuel, the Balikpapan Refinery employs advanced technologies such as Residual Fluid Catalytic Cracking (RFCC), which converts crude oil into high-quality, environmentally friendly fuel. This reduces fuel imports and supports Indonesia’s energy self-sufficiency goals.
RFCC is the “heart” of modern refineries processing heavy crude oil, optimizing economic value and environmental sustainability compared to traditional Fluid Catalytic Cracking (FCC) processes.
