PT AGPA Refinery Complex

The AGPA Refinery Complex (ARC) is a significant palm oil refining project currently under development in Balikpapan, East Kalimantan, Indonesia. This initiative is a collaboration between POSCO International and GS Caltex, two prominent South Korean companies. Key Details: • Investment and Ownership: In October 2023, POSCO International and GS Caltex committed to a joint investment of $210 million to establish ARC. POSCO International holds a 60% stake in the venture, while GS Caltex owns the remaining 40%. • Project Scope: The refinery is designed to process 500,000 tons of crude palm oil annually, producing refined oil for both domestic consumption in Indonesia and export to countries such as South Korea and China. • Construction Timeline: Construction commenced in the first quarter of 2024 on a 300,000-square-meter site within the Balikpapan industrial complex. The facility is expected to be operational by the second quarter of 2025. • Sustainability Initiatives: Beyond palm oil refining, POSCO International and GS Caltex are exploring the production of sustainable aviation fuel and marine fuel using waste oil generated from the refinery, aligning with global trends toward eco-friendly energy sources. • Local Impact: The project is anticipated to bolster the local economy by enhancing palm oil processing capabilities and creating job opportunities in the region. This collaboration underscores the strategic importance of Indonesia's palm oil industry and reflects a commitment to sustainable development and energy production in the region.