In line with Investors, Pertamina Encourages ESG Implementation for Sustainable Growth

Jakarta, June 25, 2021 – Pertamina's efforts to encourage the implementation of businesses that have a sustainable impact on environmental, social, and corporate governance aspects have the full support of shareholders and in line with the needs of global investors.

Since 2011, Pertamina has released a Sustainability Report, available to the public as part of the company's duty for ESG implementation. And to strengthen this commitment, Pertamina had launched the ESG Traction program in 2020.

In the momentum of Pertamina Investor Day 2021 yesterday (23/6), Deputy Minister of SOEs, Pahala N Masyuri, conveyed the Government's support for Pertamina's steps to simultaneously align business with Environment, Social, and Governance (ESG).

"Hopefully, all these initiatives will eventually be very positive to the value Pertamina's shareholders and investors' investment," said Pahala.

On the occasion of the 2021 investor meeting, President Director of Pertamina, Nicke Widyawati, also explained that gradually and consistently, all Pertamina Group entities have implemented programs that support the ESG agenda.

In the environmental field, Pertamina realizes that the challenges faced by the company are related to the environment because the use of natural resources causes pollution and requires waste management. For this reason, the company moves to tackle climate change, reduce the carbon footprint in the environment as a result of energy consumption and intensity, protect ecosystems and biodiversity in every area of ​​the company's operations.

"In 2020, Pertamina has succeeded in reducing greenhouse gas emissions by 27% (compared to 2010). Going forward, the company targets to increase its GHG reduction target to 30% by 2030, exceeding Indonesia's commitment to reducing emissions as stated in the Paris Agreement," said Nicke Widyawati.

In the social sector, continued Nicke, Pertamina continues to improve and strengthen occupational health and safety (Health and Safety) policies to achieve zero incidents in the future.

As a state-owned enterprise, Pertamina is also mandated to fulfill energy security and access to energy nationally. The company continues to implement flagship initiatives such as One Price Fuel and the implementation of One Village One Outlet (OVOO). In addition, Pertamina has developed an empowerment program to strengthen good relations with the community. The company also recruits and develops employees, including opening the way for people with disabilities to join the company.

"Pertamina is also taking the lead in promoting gender equality in the workplace. Two of the six Board of Directors are women. At the senior management level, the number of women is more than 16%," added Nicke.

Regarding the Governance aspect, Pertamina has also launched the New Pertamina Clean Charter in June 2020 to implement ISO 37001:2016 regarding the Anti-Bribery Management System. Including avoiding conflicts of interest, not tolerating bribery, upholding professional management, trust, and integrity, whose implementation refers to strong GCG principles throughout the organization.

In the future, the implementation of ESG in the Pertamina Group will be more integrated and monitored to the maximum as a form of commitment to the company's sustainability.

"We believe that the overall implementation of the Energy transition and ESG Strategy will provide benefits for business continuity, increase competitiveness, reduce business risk, improve employee welfare, improve Pertamina's reputation, and provide access to competitive capital," concluded Nicke.

The success of Pertamina's ESG program can provide sustainable benefits (sustainability) also for the environment and society.**