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

(September 23, 2025)--The rating reflects KPBA’s very strong sponsor supports, its strong project structure, and stable demand for petroleum products. However, the rating is constrained by high dependence on project completion and its high financial leverage.

PEFINDO equalizes KPBA’s rating with that of its ultimate parent, PT Pertamina (Persero) based on our assessment of parent linkage criteria to the project. The rating may be lowered if there is a lack of timely support from PT Pertamina (Persero) to support KPBA’s debt service payments, which would indicate weaker sponsor support.

KPBA executes the Refinery Development Master Plan (RDMP) Balikpapan and Lawe-Lawe project developments to increase refinery production capacity to 360,000 barrels per day from 260,000 barrels per day with Euro V product quality standards.

The oil refinery development project is scheduled to commence operations through a sequence of phases starting in September 2025, with operational testing to be conducted as the initial phase.

Besides, KPBA will operate its existing oil refinery business in the Refinery Unit V Balikpapan, East Kalimantan. As of June 30, 2025, its shareholders consisted of PT Kilang Pertamina Internasional (KPI, 99.9971%) and PT Pertamina Pedeve Indonesia (0.0029%), both of which are part of the Pertamina group. (ends)