PEFINDO: PT Kilang Pertamina Balikpapan (KPBA) rated idAAA(sf)

(April 2, 2024)--The rating reflects KPBA’s very strong sponsor supports, its strong project structure, and stable demand for petroleum products. The rating is constrained by high dependence on project completion and high financial leverage.

PEFINDO equalizes KPBA’s rating with that of its ultimate owner, PT Pertamina (Persero) based on our assessment of parent linkage criteria to the project. The rating may be lowered if there is an absence of immediate supports from PT Pertamina (Persero) in maintaining KPBA’s debt services payment, which indicates lower sponsor supports.

KPBA executes Refinery Development Master Plan (RDMP) Balikpapan and Lawe-Lawe project developments to increase refinery production capacity to 360,000 barrel per day from 260,000 barrel per day with Euro V product quality standards. The oil refinery development project is targeted to commence operation in September 2025. Besides,

KPBA will operate existing oil refinery business in Refinery Unit V Balikpapan, East Kalimantan. As of December 31, 2023, its shareholders consisted of PT Kilang Pertamina Internasional (KPI, 99.9969%) and PT Pertamina Pedeve Indonesia (0.0031%), both are part of Pertamina group. (ends)