In 1907, Bataafsche Petroleum Maatschappij (BPM) made the city as its headquarters and imported skilled laborers, engineers, and managers from overseas.

The battles impacted critical infrastructure, including the oil refinery stations and seaport which were completely burned to the ground.

Balikpapan's toponym (balik = "behind" and papan = "plank") is from a folk story in which a local king threw his newborn daughter into the sea to protect her from his enemies.

[23] Building of roads, wharves, warehouses, offices, barracks, and bungalows started when the Dutch oil company Bataafsche Petroleum Maatschappij (BPM) arrived in the area.

[24] The Japanese army landed and met with no opposition by the Dutch troops, which had been ordered to evacuate after destroying the oil installations.

[26] Royal Australian Air Force (RAAF) intelligence determined that half of all lubricating oils used by the Japanese military and 60 percent of all their aviation fuel came from refineries in Balikpapan, and it was therefore an extremely important target.

[citation needed] The American 380th Bombardment Group under the command of the RAAF, including the famous B-24 Liberator Shady Lady, attacked the oil refineries in August 1943 from Darwin, Australia.

[citation needed] In September and October 1944, the 5th and 13th Air Forces under the command of General George Kenney launched a series of five raids from Morotai and Noemfoor Islands.

Extensive wartime damage curtailed almost all oil production in the area until Royal Dutch Shell completed major repairs in 1950.

The US was running a CIA covert mission to undermine President Sukarno's government by supporting right-wing rebels in Indonesia.

The CIA, Taiwan and the Philippines had provided the Permesta rebels in North Sulawesi with an insurgent air force, the Angkatan Udara Revolusioner (AUREV).

On 28 April 1958, a CIA pilot, William H. Beale, flying a B-26 Invader bomber aircraft that was painted black and showing no markings,[29] dropped 500 pounds (230 kilograms) of four bombs on Balikpapan.

[33] Beale's fourth bomb set on fire and sank the Indonesian Navy Bathurst-class corvette KRI Hang Tuah, killing 18 crew and wounding 28.

[31] However, on 18 May Indonesian naval and air forces off Ambon Island shot down an AUREV B-26 and captured its CIA pilot, Allen Pope.

[citation needed] With the only oil refinery site in the region, Balikpapan emerged as a revitalized center of petroleum production.

Pertamina opened its East Borneo headquarters in the city, followed by branch offices established by other international oil companies.

[47] In addition, the construction of the Samarinda-Balikpapan toll road planned by the East Kalimantan government which divides the forest for 8 kilometers across the reservoir[48] could damage the quality of the clean water reserve in Balikpapan.

[54] In addition to sun bears, other Balikpapan animals that are declared endangered are proboscis monkeys, borneo gibbon, bornean orangutans, pangolin and otter civet.

The city is divided into 6 districts (kecamatan) subdivided into 34 urban villages (kelurahan) tabulated below with their 2010[56] and 2020[10] Census populations, together with the official estimates as at mid 2023.

[57] During the Suharto dictatorship Balikpapan achieved unprecedented economic growth by attracting foreign investments, particularly in the exploitation of natural and mineral resources.

The policy was heavily criticized for uncontrolled environmental damage and corrupt bureaucrats and politicians, but it significantly boosted urban development in resource-rich cities.

In the 1970s Balikpapan experienced 7% population growth annually, while exports of timber and petroleum increased dramatically.

Governmental public services including Bank Indonesia, the Finance Department, Angkasa Pura 1,[63] the Port of Semayang, and several others also attract many people to work in this area.

[citation needed] Balikpapan I has two raw oil refinery units that produce naphtha, kerosene, gasoline, diesel fuel, and residue and one high-vacuum unit that produces 100 metric tons (110 short tons) of paraffin oil distillate (POD), used as raw material for wax factories.

[citation needed] Opened on 1 November 1983, Balikpapan II has a hydro-skimming and hydro-cracking refinery and produces petrol, LPG, naphtha, kerosene, and diesel fuel.

Wain River Protected Forest, a Balikpapan natural reserve covering 10,000 hectares and also the habitat to a number of endangered animals, like the Beruang Madu (honey bear) which are sun bears endemic to the area, Orangutans and Proboscis monkeys or Bekantan.

[65] There is also a well-known forest site which has been developed for visitors at Bukit Bangkirai rainforest, about 45 minutes by car from Balikpapan.

[68] Balikpapan Botanical Garden, which is located at kilometer 15 on Jalan Soekarno Hatta, was officially opened on 20 August 2014.

It has 1,200 types of lowland hardwood trees, covers 309.22 hectares (764.1 acres) and is known as the "green open space" of the city.