Historic Train Line Revitalization, GRR Tuban Builds Connectivity with Industrial Centers

Jakarta, September 17^th, 2021 – Along with the approaching construction stages of Tuban Grass Root Refinery (GRR) project, PT Pertamina Rosneft Pengolahan dan Petrokimia (Pertamina Rosneft) collaborated with PT Kereta Api Indonesia (KAI) to revitalize the Dutch-era train line, in order to support the connectivity of the GRR Tuban with petrochemical user industrial centers on Java Island.

Currently, the Tuban GRR project, which is a National Strategic Project (PSN), is entering the pre-construction stage in the form of preparing a technical design (Front-End Engineering Design / FEED) before entering the construction stage which is expected to start as soon as next year. The Company needs supporting infrastructure support in the form of railways to transport equipment and raw materials for the mega construction of the largest refinery in Southeast Asia. Going forward, the same infrastructure is also needed to deliver fuel and petrochemical products from Southeast Asia's largest refinery.

President Director of Pertamina Rosneft Kadek Ambara Jaya said the GRR Tuban project is targeted to operate in 2027 to supply fuel and petrochemical raw materials, which are considered vital to realize energy security and national industrial independence. "To maximize its strategic role, GRR Tuban refinery needs to build supporting infrastructure to facilitate the delivery of petrochemical products from GRR Tuban refinery to industrial centers in Banten, West Java, and East Java. The existence of this transportation infrastructure should also be used by local communities as an alternative mode of transportation so as to reduce the burden of land traffic on Pantura route", said Kadek.

Pertamina Rosneft as the implementer of the Tuban GRR project manages an area of 834 hectares which is the largest in Southeast Asia. The Company together with KAI intends to explore a joint study of the construction of a railway station in Tuban and a connecting line to Merakurak Station, while looking at the potential for reactivation of the railway line that is currently dormant, namely the Merakurak–Babat Line which is a historic railway line because it is a century old.

Built in the Dutch East Indies era, the railway was inaugurated on 1 August 1920 by the Dutch company Nederlandsch-Indisched Spoorweg Maatschappij, but was decommissioned by the State Railway Company (PNKA) in 1990. However, based on Presidential Regulation (Perpres) No. 80 of 2019, this train line is planned to be activated again to support equitable distribution and acceleration of development in the Gerbangkertosusila area (Gresik–Bangkalan–Mojokerto–Surabaya–Sidoarjo–Lamongan).

"We want to revive the Merakurak-Babat line and develop it to be of economic value. Not only for GRR Tuban and the national petrochemical industry, but also for local communities of Tuban because it will provide passenger train services", said Kadek.

To realize this plan, Pertamina Rosneft has signed a Memorandum of Understanding (MoU) with PT KAI regarding 'Cooperation Plan for The Provision of Transportation Services Using Trains from the Tuban Grass Root Refinery Project to Unloading Station.' Both parties agreed to review the provision of railway lines to and from the Tuban GRR project site along approximately 49 kilometers with the Babat, Tuban, Merakurak, and Jenu Station routes.

The MoU will be valid for 1 year and both parties agreed to conduct a study on eight things: the construction of a station at GRR Tuban connected to Merakurak; reactivation of the Merakurak-Babat railway line; construction of a train station in GRR Tuban project; construction of commercial loading and unloading stations; study of estimated quantity, type, and destination of commodities transported per year; assessment of the number, type, and capacity of the fleet to be used; licensing and institutional studies; and Transit Oriented Development (TOD) studies which are commercial property projects around the station.

The synergy between the two companies received full government support and was facilitated by the Ministry of Investment/Investment Coordinating Board. The Memorandum of Understanding was signed at the Office of the Ministry of Investment/BKPM Jakarta on Monday (30/8/2021) by Pertamina Rosneft President Director Kadek Ambara Jaya accompanied by Director of Finance and General Affairs Pavel Vagero, and President Director of KAI Didiek Hartantyo.

Act as a witness, Deputy for Investment Implementation Control of the Ministry of Investment/BKPM Imam Soejoedi welcomed the start of cooperation between the two parties, and expressed his commitment to oversee and facilitate investment related to psn oil refinery and petrochemical development in Tuban.

"The Tuban GRR project is a PSN which is one of the long-awaited projects of the President of Republic Indonesia Jokowi. This amazing project is very strategic, because it is a "green field" project. Perhaps the last 5 years we have often heard the President's directives for increased oil lifting and the independence of the petrochemical industry. Demand is getting higher, while supply is falling. Finally, we become net importers", said Imam in a speech at the signing of Memorandum of Understanding.