Jakarta – The Deputy President Director of PT Pertamina (Persero), Wiko Migantoro, revealed the challenges faced by the oil refinery business in 2024.
To maintain operational performance, Pertamina has allocated an investment of USD 4.7 billion or equivalent to IDR 74.4 trillion (exchange rate IDR 15,833) to increase crude oil production.
Wiko explained that the pressure in the refinery sector is not only happening in Indonesia but is also a global trend.
“In 2024, we are facing a situation that puts significant pressure on the midstream business, particularly in the refinery sector. The same is happening in many refineries around the world that are struggling to remain operational,” said Wiko during a Hearing with Commission VI of the Indonesian House of Representatives, Tuesday (3/12/2024).
Pertamina’s Strategy to Maximize Operations
To support the smooth operation of refineries, Pertamina has allocated significant funds in the upstream sector to boost crude oil production.
“This investment of USD 4.7 billion is directed to ensure the optimal supply of raw materials to the refinery,” explained Wiko.
He also revealed that during the 2020–2023 period, Pertamina’s refinery intake experienced a 4 percent growth, while the yield of valuable products increased by 2 percent.
“This shows that our refinery is becoming more efficient, maximizing raw material production, and reducing less valuable products. This efficiency is very important to maintain the sustainability of refinery operations,” he added.
Refinery Production Increases
Until October 2024, Pertamina’s refinery intake reached 266 million barrels, with an end-of-year target of 325 million barrels. The yield of valuable products has reached 82 percent, while the operational availability rate of the refinery is recorded at 99 percent.
Wiko is also optimistic that the capacity of the Balikpapan refinery will increase by 100,000 barrels per day next year, which will positively contribute to the yield of valuable products.
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