History
Prior to the oil boom, Balikpapan was an isolated Bugis fishing village. The etimology of Balikpapan name (lit. balik is behind and papan is a plank) came from a folk story where a local king threw his newborn daughter into the sea to protect her against his enemies. The baby was tied beneath some planks, which were discovered by a fisherman.In 1897, the first drilling of oil began by a small refinery company.[1] Roads, wharves, wharehouses, offices, barracks and bungalows construction started when a Dutch oil company arrived in the area. On January 24, 1942, Balikpapan became a war theatre between Japanese army and the Allied Forces in which the oil refinery and other facilities were heavily damaged. Several campaigns followd until the 1945 Battle of Balikpapan which concluded the Allied Forces' Borneo campaign after which they took control of the Borneo island.
Extensive wartime damaged almost total oil production in the area and a major repairs were performed by the Royal Dutch Shell company. Shell continued operating in the area until Indonesian state-owned Pertamina took it over in 1965.[1] Having lack of technology, skilled manpower and capital to explore the petroleum region, Pertamina sublet petroleum concession contracts to multinational companies in the 1970s.
Being the only oil refinery site in the region, Balikpapan emerged as a revitalized center of petroleum production. Pertamina opened its regional headquarter in the city, followed by branch offices establishment by international oil companies. Hundreds of labourers from other part of Indonesia and skilled expatriats as managers and engineers, flocked into the city.
Economy
Some multinational corporations have commercial activities in this city such as Pertamina (Indonesia), Total S.A. (France), Chevron (US), Schlumberger, and Halliburton (US). Government public services also attract many people to work in this area, with presence of Bank Indonesia, Finance Department, Port of Semayang, and several others.Balikpapan oil refinery is located on the shore of Balikpapan Bay and covers an area of 2.5 km². Established in 1922, it is the oldest refinery in the area. It was destroyed in World War II by the Allies of World War II and re-built in 1950. The refinery has two subunits, Balikpapan I and Balikpapan II.
Balikpapan I consists of two raw oil refinery units that produce naphtha, kerosene, gasoline, diesel fuel, and residue and one high-vacuum unit that produces 100 tonnes (approx 98 tons) of paraffin oil distillate (POD), used as raw material for wax factories. The wax itself has various grades and is sold domestically and internationally.
Transportation
Balikpapan's airport is the Sepinggan International Airport. This is the second busiest Indonesian airport after Soekarno-Hatta International Airport and permits large aircraft.Airlines currently using the airport are Lion Air, Merpati Airlines, Batavia Air, Kartika Airlines, Sriwijaya Air (domestic routes), and Garuda Indonesia, Air Asia, and Silk Air (International routes).
The airport is one of the five principle sites in Indonesia where Muslims begin the pilgrimage to Mecca, the "Hajj". Between 1996 and 1997, the airport served over 4,500 East Kalimantan pilgrims, and from 1997 to 1998, it served pilgrims from East Kalimantan, South Kalimantan, Central Sulawesi, and North Sulawesi.
Other than the airport, Balikpapan also has a seaport called "Semayang" which has many destinations to Surabaya, Makasssar, Jakarta, Pare-Pare, and Manado. in 1990s, transportation using ships was very popular. But after the booming of so many new airlines with very cheap price, people now prefer travelling using airplanes to the ships.
The ferry is also another alternative for travelling to other places within coastal areas in East Kalimantan, such as Penajam.
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