National Strategic Project Utilizes Domestic Products, Pertamina's TKDN Achievement Reaches 60 Percent

Jakarta, June 6, 2022 - Pertamina continues to boost Domestic Component Level (TKDN) utilization in various national strategic projects. As a result, TKDN utilization in 2021 reached 60 percent or IDR 9.73 trillion.

Acting Vice President of Corporate Communication of Pertamina, Heppy Wulansari, said Pertamina's TKDN actualization had been fully verified by independent surveyors from PT Sucofindo and PT Surveyor Indonesia. This realization includes the Pertamina Group, both holding and sub holding.

"One of Pertamina's commitments to ensure the implementation of TKDN utilization in the company runs optimally is by compiling and implementing Guidelines for the Management of the Utilization of Domestic Products, effective from December 1, 2020," said Heppy.

According to Heppy, as a State-Owned Enterprise (BUMN), Pertamina continues to increase domestic product utilization and prioritizes the domestic industry in Pertamina's business processes and projects implementation. It follows the Government regulations to encourage national economy movement as stated in Government Regulation no. 29 of 2018, regarding Industrial Empowerment and other relevant Ministry regulations.

Heppy continued that Pertamina has also made a Corporate Long-Term Plan (RJPP). One of the focuses is the roadmap for TKDN implementation, which is gradually targeted to reach 50% by 2026. It illustrates Pertamina’s commitment to continuously sustainably increasing TKDN utilization.

"Pertamina has required TKDN implementation in every procurement process in all Pertamina Group business lines, both in the procurement of goods, services, or combined goods and services," added Heppy.

Heppy explained various examples of TKDN application in national strategic projects, one of which was pipe procurement for the Lawe-Lawe EPC Project in Balikpapan, East Kalimantan, which utilized domestic products.

The project, run by Subholding Refinery & Petrochemical - PT Kilang Pertamina Internasional (KPI), uses 20-inch and 52-inch onshore and offshore transfer pipes, all of which are the work of the nation's children, thereby significantly increasing TKDN achievement.

PT KPI also always assists from the beginning to domestic pipe manufacturers, starting from the manufacture of plate material to the manufacture of the pipe. Thus, the pipe products produced meet the specifications required in the project.

The TKDN implementation is also carried out at PT Pertamina Hulu Mahakam (PHM) in the 20-inch conductor pipes production. PT PHM has consistently guided domestic manufacturers so that the domestically produced pipe products can meet the specifications required by the project. From the guidance that has been carried out, the production pipes from 2 domestic manufacturers have passed the field trial test and can be utilized as a substitute for imported products. This also increases Pertamina's overall TKDN achievement.

"Due to this achievement and commitment, Pertamina is the only SOE to receive an award from the Agency for the Assessment and Application of Technology (BPPT) for its commitment to implementing TKDN," said Heppy.**