The Balikpapan Refinery National Project (PSN) will absorb tens of thousands of workers and stimulate local MSMEs
Balikpapan – The government continues to encourage job creation through the implementation of National Strategic Projects (PSN), one of which is the construction of Integrated Energy Infrastructure at the Balikpapan Refinery, East Kalimantan.
The project implemented by PT Pertamina (Persero) not only strengthens national energy security, but also has a direct impact on employment absorption and economic movement of the community around the project location.
The Balikpapan Refinery PSN is an integrated project from upstream to downstream that includes the construction of the Senipah Gas Pipeline, Lawe-Lawe storage tanks, Crude Distillation Unit (CDU), Residual Fluid Catalytic Cracking (RFCC) Complex, and the Tanjung Batu Fuel Oil (BBM) Terminal.
In addition to serving as a support for national energy distribution, particularly in Eastern Indonesia, this project is a driver of regional economic activity.
During the construction phase, the project employed approximately 24,000 workers, the majority of whom were domestic workers. The presence of these thousands of workers has also created new business opportunities for the surrounding community, particularly micro, small, and medium enterprises (MSMEs).
Yanti, the owner of a food stall near the Balikpapan Pertamina Refinery, has directly experienced these benefits. During construction, her stall has been busy with construction workers, increasing her daily income and enabling her to meet her family’s needs.
“Thank God, we’re grateful. We have daily traffic. Hopefully, Pertamina workers, Pertamina Hulu Mahakam workers, and those eating lunch can still come to the local food stalls even though construction is complete,” said Yanti.
Tuti, the owner of Warung Kube Mandiri in Mekar Sari, East Kalimantan, also felt the positive impact of the Balikpapan Refinery National Strategic Project (PSN). She revealed that her stall is often crowded with Pertamina refinery construction workers during lunchtime.
“Lunchtime is very crowded, and sometimes there’s not enough seating. The project is quite beneficial and very helpful. I hope it can continue so more people can eat,” said Tuti.
Pertamina’s Vice President of Corporate Communication, Muhammad Baron, said the National Strategic Project (PSN) at the Balikpapan Refinery is designed to provide broad economic benefits.
In addition to absorbing a large number of workers during the construction phase, the refinery’s operational phase is projected to involve around 2,000 workers directly.
“The projects built and developed by Pertamina not only focus on strengthening national energy security but also provide a real multiplier effect for the community,” Baron said.
He added that the involvement of local business actors in the project supply chain, providing supporting services, and providing logistics and consumption needs during the construction and operation period also strengthens the regional economy.