The lenders include export credit agencies from South Korea, Italy and the United States, and 22 commercial banks, Pertamina said in a statement.
Pertamina will use the funds for the expansion of its Balikpapan oil refinery to a capacity of 360,000 barrels per day , from 260,000 bpd. The refinery would also be able to produce fuel with Euro V emission standards after the upgrade, the company said. "With the improvements, Pertamina will be able to produce more environmentally friendly fuels and this certainly will support reaching Indonesia's net-zero emissions target," said Pertamina spokesperson Fadjar Djoko Santoso.
As of June, the Balikpapan construction was about 74% complete, according to Feri Yani, president director of Kilang Pertamina Balikpapan, the company unit responsible for the refinery. The Balikpapan project is part of Pertamina's long-term refinery investment blueprint, a 2015 plan to nearly double its total processing capacity to 1.5 million bpd.its expansion plans to align with the global transition towards the greater use of renewable energy.