Celebrating Its 7th Anniversary, Here Are 7 "Gifts" from Kilang Pertamina Internasional for the National Energy Security

Jakarta, November 14, 2024 - Marking its 7th anniversary, PT Kilang Pertamina Internasional (KPI) continues to optimize its performance as Pertamina's refining and petrochemical business unit (13/11). Corporate Secretary of KPI, Hermansyah Y Nasroen, highlighted seven "gifts" or KPI's main contribution to Indonesia, as a commitment to safeguarding the national energy security.

Regarding sustainability, from 2020 to 2024, KPI successfully recorded a cumulative reduction of 3.8 million tons of carbon emissions. Pertamina's refining and petrochemical business unit also becomes the primary contributor to decarbonization within Pertamina, supporting Indonesia’s targets for the 2030 Energy Mix and Net Zero Emissions by 2060 set by the Indonesian government.

“KPI’s decarbonization strategy combines the technology aspect with Nature-Based Solutions (NBS) or environmental-based emission reduction such as mangrove planting,” Hermansyah added.

The second "gift" is KPI's significant contribution through multiplier effects created by National Strategic Projects (PSN). The Refinery Development Master Plan (RDMP) project at the Balikpapan refinery not only increases processing capacity to 360,000 barrels per day but also has a positive socio-economic impact on the surrounding community.

"TKDN absorption has reached 33.9%. In addition, according to the Investment Activity Report (LKPM) and Balikpapan City Investment Realization Data for 2023, PT Kilang Pertamina Balikpapan recorded the largest investment realization with over IDR 14.8 trillion, making it the highest in Balikpapan. In total, this project has employed thousands of workers, especially during peak construction with 26,000 workers," Hermansyah explained.

Another contribution is the green fuel roadmap, leading the energy transition era through the Green Refineries development. “One example is the Cilacap Refinery, which is currently in the second phase of development studies. In the first phase, the Cilacap Refinery established a green refinery with a green fuel capacity of 3,000 barrels. Through this refinery, Pertamina Renewable Diesel and Pertamina Sustainable Aviation Fuel products are produced. In the second phase, a new green refinery unit with a green fuel processing capacity of 6,000 barrels will be built,” Hermansyah explained.

KPI’s next "gift" is the upcoming bio-jet fuel production that meets the ISCC (Sustainable Aviation Fuel) certification requirements. This certification proves the product’s compliance with international sustainability standards. To obtain this certification, Used Cooking Oil (UCO) is used as the raw material. KPI, currently through the Cilacap Refinery, can produce bio-jet fuel using core palm oil components.

Meanwhile, in the Corporate Social Responsibility (CSR) aspect, in 2024, KPI recorded an IDR 16.5 billion in aid distribution. “Our principle in CSR programs does not only prioritize numbers but also foster independence among beneficiaries. Our CSR programs have received national recognition such as PROPER and global recognition like the SDGs Award,” Hermansyah said.

Aligned with CSR, employee volunteerism and social actions continue to increase to mark the anniversary annually. “One of our Employee Volunteerism movements, ‘Green Journey Challenge,’ successfully raised IDR 178 million, which will be donated to the CarbonEthics Indonesia Foundation and used for planting 2,000 mangrove trees in Indramayu. In addition, many other charity events initiated by employees are part of the 7th-anniversary celebrations,” Hermansyah explained.

KPI's commitment to maintaining safe operations is equally important to achieving 614,086,116 safe work hours by October 2024. “Refinery conduciveness based on HSSE aspects is crucial to ensure the company’s reliability in refining and producing quality products,” Hermansyah concluded.

Boosting Refinery Performance
Beyond socio-economic contributions, KPI continues to strengthen refinery performance, following its strategic role in maintaining the national oil and petrochemical industry’s resilience.

One key indicator is total product yield, where by the end of the third quarter of 2024, KPI supported national energy resilience by maximizing the production of 251.5 million barrels of fuel, non-fuel products, and others. "The quality of the products is continuously improved to meet Euro V standards and reduce sulfur content," Hermansyah said.

Refining Resilience
In its 7th year, KPI adopted the theme "Refining Resilience" reflecting its capability to refine energy resources to create refinery profitability amid the existing energy trilemma challenges.

The energy trilemma represents the challenges faced in energy management, encompassing three main issues: Energy Security, Energy Equity/Affordability, and Sustainability.

KPI remains committed to growing into a profit-oriented company by conducting sustainable and environmentally conscious business operations, Hermansyah added.

In agreement, Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, said that KPI's performance as Pertamina’s Refining & Petrochemical Subholding continues to grow and contribute to the Holding's overall performance.

"KPI has proven that Pertamina’s refining business is profitable and a significant contributor to the company’s performance," Fadjar emphasized.

KPI is a subsidiary of Pertamina, focusing on oil refining and petrochemical businesses in line with ESG (Environment, Social & Governance) principles. KPI is also listed in the United Nations Global Compact (UNGC) and committed to the Ten Universal Principles of UNGC as part of its operational strategy to implement ESG aspects. KPI will continue to conduct its business professionally to become a world-class environmentally conscious refinery and petrochemical company with good corporate governance.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina’s business lines and operations.**