RDMP Balikpapan Expected to Boost Domestic Diesel Supply as Indonesia Sets 2026 Zero-Import Goal

Announced by Minister of Energy and Mineral Resources (ESDM) and Coordinating Minister for Downstream and Energy Transition Bahlil Lahadalia in Jakarta on Monday, October 26, the regulation replaces Pertamina’s long-standing Business-to-Business (B2B) competitive bidding process with Government-to-Government (G2G) and Government-to-Business (G2B) frameworks. Under the new architecture, the central government strikes bilateral supply agreements with producer nations, BLU Lemigas executes the import procurement, and Pertamina purchases the commodities domestically from Lemigas.th"All this time, Pertamina conducted B2B processes where tenders took a very long time, and even after winning a tender at a cheap price and reaching a deal, when another country offered to buy at a higher price, the supplier gave the cargo to the higher bidder," Bahlil said during a press conference at the Ministry of ESDM in Jakarta on Monday.1. End of Routine Direct B2B Tenders:2. Pertamina’s Redefined Role as Offtaker:3. Conditional Direct Import Exception:4. No-Tender and Price Differential Clauses: "We are committed to executing the government's mandate professionally and responsibly so that energy supplies for the public and industry remain secure," Simon said in an official written statement on Tuesday, October 27.From an international energy market perspective, Perpres No. 107/2026 presents a sharp trade-off between sovereign supply security and institutional governance. On the upside, state-backed G2G contracts give Indonesia stronger diplomatic leverage to secure long-term volumes and discounted barrels such as Russian crude oil, which Director General of Oil and Gas Laode Sulaeman confirmed is a focus of the revised regulation while shielding domestic supply from spot-market bidding wars. Perpres No. 107/2026 genuinely fortify Indonesia’s energy sovereignty, or will it create a new bureaucratic bottleneck in the country's fuel supply chain?

In a notable collaboration with SLB, the world's leading energy service company, SPE ITS SC held an enlightening seminar in the format of a talk show. This event was held both online and onsite at Aula BG Munaf at Institut Teknologi Sepuluh Nopember, Surabaya, on September 3, 2023. The main goals of this seminar were, firstly, it aimed to help participants understand the value of SLB in the energy industry, the impact it has, and the opportunities available through the student vacation trainee program. It also aimed to explain the path to getting a full-time job at SLB and shared potential opportunities for university students. This included insights into the selection process and the criteria for eligibility for the trainee program, as well as experiences from previous trainees at SLB.This event is divided into three sessions, the first one is the Introduction to SLB and its commitment toward sustainability: the current & future condition of the oil and gas industry presented by Indah Dwie Jayanti as SLB Campaign Manager to ITS. For decades the oil and gas industry has been in high demand which therefore leads to high profit. With future career prospects, many university fresh-graduates are interested in joining companies involved in the oil and gas industry such as SLB. Hence, the committee was inspired to organize this event to highlight SLB's dedication to sustainability and responsible practices in the oil and gas industry. “The event’s purpose is to serve as a platform to educate, engage, and attract individuals who share the company’s commitment to sustainability while also enhancing SLB’s reputation in the industry”.Sustainability was chosen as the central theme of this event because it addresses global environmental concerns which aligns with SLB's values and mission, and reflects the company's commitment to corporate responsibility and long-term viability. By emphasizing sustainability, SLB demonstrates its dedication to addressing the challenges of our time and contributing to a more sustainable and responsible future.The following segment promises to be an enlightening discussion centered on career prospects. It covered crucial topics such as student vacation trainee opportunities, internships, and insights into future careers in the oil & gas industry. This session was presented by Verra Lakshmi, who holds the esteemed position of SLB Recruiting Manager in Indonesia. This shed light on the question, "Why SLB?" for aspiring professionals.The final session of the event is a significant one, Career Masterclass. In this session, participants had the invaluable opportunity to receive CV feedback and engage in a mock interview, providing them with practical insights and guidance to enhance their professional journey.“Through this event, we strive to create a positive impact by promoting sustainability, sharing knowledge, and fostering innovation. We also aim to contribute to a more sustainable and responsible oil and gas industry while also supporting the professional development of attendees interested in sustainability and career opportunities within SLB.” Written By: Arya Nugraha Aulia Rahman Yusup

Every time you gas up your vehicle, you're drawing on the product of a complicated industrial process that converts raw crude oil into something usable. Natural resource crude oil pumped from below-ground reservoirs cannot be used in its native form. In order to be converted into gasoline, diesel, jet fuel, or even asphalt and plastics, it must go through a complex refining process. This article delves into the intricacy of every process used in oil refining, from raw extraction up to the final distribution.Distillation (Fractional Distillation)Refining starts with distillation, or fractional distillation. First, crude oil is heated in a furnace at temperatures ranging from 350°C to 400°C. The scorching blend is then channeled to a distillation column, which is a large steel column in which the constituents of crude oil are separated on the basis of their boiling points. Lighter fractions like gases (propane and butane) and gasoline rise to the top, middle-weight fractions like kerosene and diesel condense in middle levels. Heavier fractions like lubricating oils and asphalt descend to the bottom. Every fraction exits the column at various levels for processing.Conversion ProcessAfter distillation, heavier fractions with large hydrocarbon molecules undergo conversion to produce lighter, more useful products. Cracking breaks these molecules down—either with heat (thermal) or catalysts (catalytic). Reforming restructures them to boost fuel octane, while alkylation combines light molecules into high-octane components for gasoline. These steps maximize the value and efficiency of each barrel of crude oil.Treatment ProcessBefore sales or use, products must be treated for the removal of impurities that can harm engines, pollute the environment, or rust equipment. The process of hydrotreating with hydrogen gas in the removal of sulfur, nitrogen, and trace metals is a critical treatment process. Desulfurization is also a very critical step, especially for those fuels like diesel and gasoline that are under tight low-sulfur requirements. Sweetening operations are used to remove malodorous hydrogen sulfide and other reactive compounds. Sweetening operations ensure petroleum products are clean, efficient, and friendly to the environment.BlendingOnce products have been refined and processed, they are yet to be marketed. The final process is blending, in which different hydrocarbon streams are combined to achieve wanted qualities such as octane number (in gasoline) or cetane number (in diesel). Additives are also added at this stage—for instance, detergents, antioxidants, or anti-knock additives—to improve performance, increase engine life, and reduce emissions. Blending ensures that every liter of fuel meets regulatory requirements and performance standards before it reaches consumers' hands.After being mixed and processed, the end petroleum products are stored in enormous tanks and available for distribution. Distribution logistics are complex and global in nature. They are transported by pipelines, oil tankers, railroad cars, or trucks to refineries and fueling stations. Some are exported, others to airports, industrial facilities, and retail service stations. Such a vast infrastructure makes energy resources on-demand available across continents and regions.It is a very intricate and engineered procedure to transform crude oil into the wide variety of products we use daily. Starting with distillation and molecular changes, then scrubbing and blending, every move is carefully tailored to achieve highest efficiency, security, and quality of product. The next time you pump your gas or hit the air in an airplane, you're relying on this unbelievable system of science, engineering, and logistics. Understanding the processing of oil not only uncovers the hidden complexity of everyday comforts but also highlights the requirement for innovation and sustainability in our energy infrastructure

On the 13th of October 2023, the Society of Petroleum Engineers (SPE) Institut Teknologi Sepuluh Nopember (ITS) Student Chapter hosted an inspiring event titled 'Delegates Talk 1.0.' The objective of this program was to provide a platform for successful delegates to share their experiences and tips with members interested in excelling in the competitive world of oil and gas competitions.Asta Raziq, the PIC of the event, explained that the idea behind this was to meet the curiosity of numerous members who were eager to learn how to succeed in competitions. This program aimed to fulfill that desire by arranging face-to-face discussions with speakers who have excelled in oil and gas competitions. Asta Raziq stated, "Our main goal is to shed light on competitions since many members have shown an interest in this field. However, we also want to introduce them to SPE ITS SC on a deeper level. With this delegates' talk, we aim to demystify oil and gas competitions while showcasing fields that may be suitable for our members."The event commenced with presentations by two accomplished speakers, Samuel Zagota and Haya Aqila, who had previously achieved success in various oil and gas competitions, including being the 1st Winner in the Petroleum Business Case Competition at IPFEST ITB 2023. They shared insights into the structure, technicalities, and distinctive characteristics of case studies and business case competitions, providing valuable information to the enthusiastic members.Following these informative presentations, an engaging Q&A session was conducted where several members took the opportunity to ask the speakers about various competitions in the oil & gas field, such as oil rig design and paper competition. Many of the participants were freshmen, new to these competitions and unsure of where to begin. They sought advice and tips from the speakers on how to kick start their journey in these competitions. The exchange of questions and answers fostered a dynamic and engaging atmosphere, making it a valuable part of the event.The event continued with Asta Razqi, the Project Officer for the 2023 SPE ITS SC's Petroleague, presenting the 'Petroleague Roadshow.’ Petroleague is the annual internal competition of SPE ITS SC, this competition is suitable for beginners who want to start their competition journey. The highlight of the event was the Focused Group Discussion (FGD), where both speakers delved into their personal experiences and journeys in the oil & gas competitions. They patiently interacted with the members, addressing their questions and providing insights into their journeys in competitions. The speakers' willingness to discuss the hurdles they had overcome, the strategies they had employed, and the moments of inspiration that had fueled their success not only served as a source of motivation but also demystified the often intimidating world of oil and gas competitions.Through 'Delegates Talk 1.0,' SPE ITS SC not only catered to the interests of its members but also expanded their knowledge about the diversity of competitions within the oil and gas sector. Importantly, it encouraged members and delegates to participate in competitions organized by SPE ITS SC, including the annual Petroleague, and to explore many competitions outside of ITS. “Moreover, there will be a series of introduction series events with various competitions such as Oil Rig Design Competitions, Business Case Competition, Paper & Poster Competition, and Case Study Competitions with hope that members will be able to understand more about the competition and be able to take part in events that will be held in the future.” Asta concludedWritten By: Arya Nugraha Aulia Rahman Yusup