Tag: PT Pertamina

State-owned oil and gas company PT Pertamina succeeded in saving operational costs of around Rp6 trillion (US$402.46 million) until July 2022 through several efficiency programs amid rising world oil prices that increased fuel production costs.

She explained that energy companies around the world are facing difficult situations as a result of disruption of the global energy supply chain due to the Russia-Ukraine conflict. The global trade mobility leading to post-pandemic recovery was jolted by limited supply that led to an energy crisis.

The president director noted that the Indonesian government’s policy of maintaining the people’s purchasing power through fuel subsidies was the proper measure to accelerate economic recovery.

According to Widyawati, the accuracy of the policy is reflected in the fuel consumption increase for community mobility and business activities.

Pertamina President Director Nicke Widyawati stated that such a success could not be separated from strategic cost-saving measures taken by the company group since the start of this year.

She explained that energy companies around the world are facing difficult situations as a result of disruption of the global energy supply chain due to the Russia-Ukraine conflict. The global trade mobility leading to post-pandemic recovery was jolted by limited supply that led to an energy crisis.

The president director noted that the Indonesian government’s policy of maintaining the people’s purchasing power through fuel subsidies was the proper measure to accelerate economic recovery.

According to Widyawati, the accuracy of the policy is reflected in the fuel consumption increase for community mobility and business activities.

On the other hand, she also pointed out that the increase in fuel consumption had caused an increase in the burden of government subsidies.

“We understand the heavy burden of the government’s fuel subsidy, and for that Pertamina carries out various cost-saving programs in order to help reduce the burden,” she stated.

She remarked that the largest chunk of the company’s cost of fuel production is for the purchase of crude oil, which accounts for 92 percent of the production costs.

Fortunately, investment in upgrading the Pertamina Oil Refinery, which had been conducted in the last four years, had succeeded in increasing the flexibility of crude oil availability.

It means, if so far, the Pertamina refinery has only been able to process certain crude oil that is expensive, but starting last year, it has been able to process crude oil, with a higher sulfur content, which is cheaper and can be gained from many sources,” Widyawati stated.

This is Pertamina’s strategic move that has succeeded in significantly reducing fuel production costs, she affirmed.

In addition, the company’s energy efficiency efforts in all operational areas — from upstream to downstream — had caused significant cost savings while also contributing to a reduction in carbon emissions.

“The post-restructuring breakthrough, which is also significant to achieve Pertamina Group’s efficiency, is the centralization of the procurement of goods and services, as well as the integration and optimization of all assets from upstream to downstream,” she stated.

Apart from saving costs, the Pertamina Group has also succeeded in increasing its revenue through the export of high value-added products, such as HVO (palm-based D100) and Low Sulfur Fuel Oil.

By upgrading its refineries, Pertamina has currently been able to produce more low-carbon products whose demand had continued to increase, thereby capturing a very prospective opportunity in the midst of global demand for such a product.

“For Pertamina, cost savings are not just about cutting costs but also changing operating models and improving business processes, so that all company programs can be carried out and all targets are achieved, but at a lower cost,” Widyawati stated.

“Pertamina will continue to make various efforts to save costs, which at the same time can reduce carbon emissions, thereby supporting the company’s and national energy transition efforts,” she said.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Rahmad Nasution (c) ANTARA 2022

Indonesian state-owned oil and gas company PT Pertamina has succeeded in re-establishing itself and made it to the 2022 Fortune Global 500 list, thereby being the only Indonesian company to be included on the list.

Pertamina is ranked 223rd on the list, climbing 64 places as compared to the 287th position in 2021, according to a release issued by the company on Wednesday.

In 2022, the Fortune Global 500 list places 30 world oil and gas companies in the Petroleum Refining category. Pertamina was ranked 21st, which is above Japanese petroleum company Idemitsu and Spanish multinational energy company Repsol.

State-Owned Enterprises (SOE) Minister Erick Thohir lauded Pertamina’s success in re-entering the Fortune Global 500 list, with a significant improvement in ranking.

Thohir said that Pertamina’s ranking is testament to the fact that Indonesia’s SOEs can compete with global companies.

“I highly laud the directors, commissioners, and all Pertamina personnel, who have worked hard in increasing the company’s competitiveness in the international arena,” he stated in Jakarta on Monday (August 8).

Thohir pointed out that Pertamina’s success demonstrates that SOEs are not only able to survive in the face of a pandemic but can also improve performance by making various improvements.

According to the minister, Pertamina’s achievements cannot be separated from the transformation and restructuring measures undertaken through the formation of holdings and subholdings of the company.

“Transformation through its holdings and subholdings makes Pertamina’s operations more effective and efficient because it focuses more on the core business. This is in line with our target that Pertamina must become a global energy champion company and have a valuation of US$100 billion,” he remarked.

Thohir further expressed optimism that Pertamina’s achievements would inspire other SOEs to perform better.

He also expressed confidence that other Indonesian SOEs can take a cue from Pertamina by optimally implementing necessary transformation, core values, and improvement.

“The better the performance of Indonesian SOEs, more significant will be the impact on the community, let alone until being recognized at the global level. Positive performance will certainly provide a large space for SOEs to contribute more in increasing national economic growth, maintaining market balance, as well as populist economic programs,” Thohir remarked.

In line with the SOE minister’s remarks, Pertamina CEO Nicke Widyawati said the company’s efforts to boost competitiveness were unhindered by the pandemic, and even in the midst of severe challenges, Pertamina’s financial performance soared sharply in 2021.

According to Widyawati, Pertamina’s performance has helped it climb the rankings in the Fortune Global 500 list in 2022.

“Pertamina has succeeded in increasing the company’s revenue and net profit twice as compared to the previous year. This is an extraordinary achievement in the midst of global challenges and a pandemic that has not ended,” she affirmed.

She noted that Pertamina ranked fifth on the Fortune Global list for the Southeast Asian region. Moreover, in Asia, Pertamina was ranked 105th out of the 227 companies.

“Pertamina is also ranked 12th out of the 24 companies led by female CEOs and the only company in the Petroleum Refining category led by a female CEO,” she pointed out.

Apart from making it to the 2022 Fortune Global 500 list, in September 2021, Pertamina also received an Environmental, Social, and Governance (ESG) Risk Rating of 28.1 or was assessed to be at Medium risk.

Such a global assessment has placed Pertamina in the 15th rank out of 252 oil and gas companies around the world, and at the 8th rank in the integrated oil and gas sub-industry.

“This is global acknowledgment of Pertamina’s commitment and efforts to lead energy transition and decarbonization to support Indonesia’s target of net zero emissions in 2060 as well as the achievement of the potential of renewable resources in Indonesia in the context of sustainable growth,” Widyawati explained.

In 2021, Pertamina successfully completed its business transformation by establishing six oil and gas subholdings: Upstream Subholding, Refining and Petrochemical Subholding, Commercial and Trading Subholding, Gas Subholding, Integrated Marine Logistics Subholding, and New and Renewable Energy Subholding.

Widyawati emphasized that transformation is a strategic step to adapt to future business changes. Hence, the company should move ahead in a more agile and swifter manner as well as focus on broader and aggressive business development.

“The transformation will continue to encourage Pertamina to become a world-class energy company. With the support of all stakeholders, Pertamina will fulfill the aspirations of shareholders to realize the target of ranking among the 100 world-leading companies,” she affirmed.

In 2021, Pertamina had clocked a revenue of US$57.51 billion, an increase as compared to its revenue of US$41.47 billion in 2020.

Pertamina’s net profit in 2021 had reached US$2.045 billion, which is almost twice as high as the 2020 net profit of US$1.05 billion.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Fardah Assegaf (c) ANTARA 2022

Indonesia’s oil and gas state-owned enterprise PT Pertamina has encouraged collaboration between countries for energy transition in order to tackle global warming.

“Preventing global warming and climate change is a challenge for all countries in the world, both developed and developing countries, including energy companies and industry parties,” the energy company stated in a release, Friday.

Pertamina President Director Nicke Widyawati noted that energy transition is the key to preventing catastrophic impacts of global warming and climate change, but energy transition efforts should not interfere with the unfinished development agenda in some developing countries.

Widyawati brought up this point, considering that the average energy consumption, emission expenditure, and income per capita of developing countries are generally below those of developed countries.

“Therefore, developed countries must support developing countries in the transition to sustainable energy if the world wants to have a chance to meet the global warming (reduction) target,” she stated in a dialogue themed “Sustainable Finance for Climate Transition” held in Bali on Thursday (July 14).

She remarked that Pertamina — as an energy SOE — has allocated a capital expenditure (Capex) of 14 percent of its total investment funds to support the implementation of energy transition in Indonesia. The figure is much higher than the average investment of 4.3 percent for renewable energy made by any other world energy company.

“Overcoming climate change is one of Pertamina’s Sustainability program strategies, with a target of reducing carbon emissions by 30 percent by 2030, which is above Indonesia’s nationally determined contribution (NDC) target,” Widyawati noted.

She remarked that from 2010 to 2020, the company had succeeded in reducing 6.8 million metric tons of carbon dioxide equivalents (MmtCO2E), or 27 percent, from 26 percent of the 2010 baseline.

Widyawati — who currently also serves as chair of the B20 Task Force for Energy, Sustainability, and Climate — emphasized that all energy transition efforts must be thoroughly planned in order to ensure energy security and accessibility for the entire community is well-maintained.

Pertamina will accelerate its energy transition efforts towards sustainable energy use as well as ensure a fair and affordable transition and improve energy security, she remarked.

Considering that energy transition requires high technology and costs, Widyawati further said that Pertamina is open to partnerships and collaborations with like-minded parties to encourage innovation and reduce technology costs for the transition effort.

“Pertamina’s ambition is to become a leading global energy company with a good reputation and to be recognized as a company that implements the principles of ESG (environmental, social, and governance) in an integrated manner,” she stated.

The dialog, held in a hybrid format, was also attended by Indonesian Minister of Finance Sri Mulyani, President Director of state-owned electric power corporation PLN Darmawan Prasojo, President Director of PT Pertamina Geothermal Energy (PGE) Ahmad Yunianto, and Vice President of Jinko Solar Co. Ltd. Dany Qian.

The Business 20 (B20) is the official G20 dialogue forum with the global business community. Established in 2010, B20 reserved companies and business organizations, and it is among the most prominent Engagement Groups in G20.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Fardah Assegaf (c) ANTARA 2022

State-owned oil and natural gas corporation PT Pertamina has gained recognition from several international institutions over its strong implementation of the environmental, social, and governance (ESG) approach this year.

Pertamina’s ESG implementation, which is getting stronger, has attracted international interest, as seen from the acknowledgment from a number of institutions and international awards, the company stated in a release received here on Tuesday.

The latest acknowledgment has come from JP Morgan, which included Pertamina in its ESG Emerging Market Bond Instrument (JESG EMBI) Index and assigned it a score of 44.2 in June 2022. The score is higher than the threshold of 20 set by JESG EMBI.

It shows that Pertamina has succeeded in improving its business, especially in terms of environmental insight, sustainability, and aspects of good governance, the company said.

“With this recognition, Pertamina has the opportunity to access wider funding in the market, including more competitive interest rates,” it added.

Pertamina’s position has also become more recognized globally as a motor that drives sustainability in Indonesia, especially since the country has also committed to implementing the Paris Agreement on reducing carbon emissions.

“In line with Pertamina’s vision to become a sustainable global energy company, we continue to improve the company’s ESG aspects in accordance with international sustainability practices so that our initiatives are in accordance with ESG standards,” said Emma Sri Martini, Pertamina’s finance director who is also a committee member of Pertamina Sustainability.

Pertamina has undertaken several measures in its sustainability efforts, including contributing to reducing carbon emissions, maintaining biodiversity, and implementing good corporate governance (GCG).

Further, Pertamina succeeded in reducing 7.4 million tons of carbon equivalent, or around 29 percent, by 2021 from the 2010 baseline.

Meanwhile, to maintain biodiversity, the company, in the past five years, has carried out conservation efforts for around 30 endemic animal species and around 24 plant species, most of which have become nearly extinct.

Regarding the implementation of GCG, Pertamina earlier this year won the Anti-Bribery Management System certification, which signifies the company’s commitment to implementing accountable work practices.

Apart from its inclusion on the JP Morgan Index, Pertamina also received a number of awards for sustainability efforts.

In June 2022, Pertamina and its affiliate, Pertamina Hulu Rokan, won the Indonesian Sustainability Business Award (SBA) in the “Highly Recommended” category.

The SBA is given to companies that are considered to have a very strong sustainability commitment and demonstrate consistent efforts in various sustainability areas as well as have a good road map for sustainability implementation.

SBA Indonesia has been instituted by Global Initiatives, an international company based in Singapore that is concerned with sustainability issues. Global Initiatives organizes the award program with some local partners, namely PwC Indonesia, the Indonesian Business Council for Sustainable Development (IBCSD), Control Union, and the Indonesian Chamber of Commerce and Industry (Kadin).

The award is also held in several other countries besides Indonesia, namely Singapore, Malaysia, the Philippines, and Thailand.

Earlier, Pertamina had also received an ESG score of 28.1 from Sustainalytics in 2021, which reflected a moderate level of risk, on par with other companies such as Spanish energy company Repsol and Italian oil industry company ENI.

In addition, the World Benchmarking Alliance (WBA) also placed Pertamina 49th out of 100 oil and gas companies in the WBA Climate & Energy topic.

“We also encourage all Pertamina sub-holdings and affiliates to improve the implementation of ESG aspects, so that the company’s operational and business programs can further implement some applicable rules according to ESG best practices,” Martini said.

Launched in 2018, the WBA seeks to generate a movement around increasing the private sector’s impact on efforts to build a sustainable future for all.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Rahmad Nasution (c) ANTARA 2022