On the east coast of Kalimantan Island, a city that has been thriving due to "black gold" has been boiling for over a hundred years. In 1897, when the first oil well gushed out here, Balikpapan was destined to become the deepest imprint on Indonesia's energy map. Now, as the core refining heart of Pertamina, the Indonesian national oil company, this city is once again in the spotlight. Unlike the hustle and bustle of the past, this time it carries the ambition of the entire country to transform from "selling raw materials" to "selling products".

In 2026, Indonesia's energy industry will experience unprecedented changes. In order to get rid of the passive situation of crude oil exports and refined oil imports for a long time, the Indonesian government is playing a big game. From upstream exploration to downstream refining, from policy loosening to supply chain reshaping, a series of combination punches are thoroughly activating this dormant treasure. For Chinese energy companies seeking to go global, this is not only an opening of the market, but also a feast for technology and equipment.

Ending Import Dependence

Indonesia's strategy of energy independence has taken the most crucial step forward. The Balikpapan large-scale oil refining project, with a total investment of 7.3 billion US dollars, has now been officially put into operation. This not only ends the country's more than 30-year history of importing refined oil products, but also achieves complete self-sufficiency in gasoline and diesel. Taking this as an opportunity, Indonesia is no longer satisfied with simple resource exports, but is taking big strides towards high value-added petrochemical downstream industries such as ethylene and propylene. This shift in industrial logic means that the market demand for fine chemical equipment, deep processing technology, and supporting services will experience explosive growth.

Sprint towards the goal of one million barrels

In order to further tap into underground potential, the Indonesian government has launched the largest oil and gas block bidding in recent years. By 2026, a total of 118 new oil and gas blocks will open their doors to global capital, with the goal of producing 1 million barrels of crude oil per day. In order to attract foreign investment, the government has significantly simplified the approval process for exploration and mining, and given preferential tariff policies. This measure directly drives the rigid demand for oilfield operation and maintenance, geological exploration, and production equipment, providing a broad incremental space for technical service providers and equipment suppliers.

Link to core resources

The explosion of the industry requires an efficient docking platform. The IGEX/BEX exhibition, scheduled to be held at the Balikpapan Sports Convention Center from November 11th to 13th, 2026, is an excellent window to deeply cultivate the core hinterland of eastern Indonesia. The scale of this exhibition has been upgraded, with an exhibition area of 23000 square meters, expected to attract more than 400 exhibitors and 21000 professional visitors. Unlike Jakarta's comprehensive exhibitions, this one focuses more on the actual implementation of resource development and refining upgrading in the eastern region. During the exhibition, the core team of the Indonesian Ministry of Energy and Pertamina will be in person to provide exhibitors with opportunities to directly face the decision-making level through multiple government enterprise matchmaking meetings and technical exchange sessions.

From the first roar of a century old oil well to the modernization and upgrading of the entire industry chain, the transformation of Balikpapan reflects the ambition of Indonesia's energy industry. On this land full of opportunities, whoever can take the lead in layout will be able to seize the opportunity in the new round of energy reshuffle in Southeast Asia.Editor/Yang Meiling