Achieving Positive Performance in 2023, KPI is Optimistic to Enhance Performance in 2024

Jakarta, February 27, 2024 – Since becoming Pertamina's refining & petrochemical subholding company, PT Kilang Pertamina Internasional (KPI) has continuously strived to achieve positive performance. In 2023, KPI once again successfully recorded positive operational performance. It was revealed by President Director of KPI, Taufik Aditiyawarman, during the performance presentation at the 2023 KPI Performance Town Hall Meeting.

Taufik explained that there are four indicators that measure Kilang's performance, namely refinery raw material intake, percentage of high-value products to intake (Yield Valuable), energy usage intensity index (Energy Intensity Index), and refinery operation reliability indicator against operational planning (Plant Availability Factor).

To ensure these achievements, KPI has implemented key strategies to drive positive performance, including innovation, refinery optimization, refinery reliability control, and operational cost efficiency.

Taufik revealed that KPI successfully processed crude oil above 340 million barrels throughout 2023. For reference, in 2022, KPI processed 321 million barrels. This intake figure represents an approximately 6 percent increase compared to 2022.

"In 2024, the target will increase as we approach the completion of capacity enhancements at the Balikpapan refinery. This expansion will enable us to manufacture high-quality products on par with Euro 5 standards," Taufik explained.

Taufik also disclosed that refinery optimization is carried out by producing high-value products in line with crack spread movements (the difference between crude oil prices and refinery-produced product prices).

"Refinery optimization also involves crude procurement processes. We are given flexibility in processing crude to enhance refinery profitability," Taufik explained.

Efforts to produce high-value products are undertaken to increase the Yield Value figure by encouraging refineries to produce high-value products.

According to Taufik, KPI has successfully exceeded the Yield Valuable Product (YVP) target. The percentage of high-value product production achieved approximately 83%, surpassing the target in the RKAP by about 81%.

Regarding refinery reliability, KPI has achieved its target. "Throughout 2023, the Plant Availability Factor has achieved above 99%," Taufik explained.

Regarding the operational cost efficiency of the refinery, Taufik continued that controlled energy usage is below the RKAP target.

The energy usage intensity index for production at the refinery, or Energy Intensity Index (EII), was recorded at 106.4, better than the RKAP target of almost 107.8. For reference, a lower index figure indicates better performance. Programs implemented to reduce EII includes electricity and external gas utilization and equipment modernization.

"I invite all KPI employees to continue delivering their best performance. May the achievements of 2023 inspire and drive even better performance in 2024," Taufik suggested.

Acknowledging the accomplishment, the Chairman of KPI, represented by Commissioner Ilham Salahudin, expressed appreciation. He emphasized that to enhance performance, all parties must require and implement at least three things.

"I am confident and believe that with good communication accompanied by adequate information exchange and collaboration, success will be achieved," Ilham said.

On a separate occasion, the Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, stated that the positive performance recorded by PT KPI contributes to Pertamina's efforts to provide quality fuels.

"With the gradual completion of several refinery projects by PT KPI, Pertamina can provide quality fuels and continue to realize national energy resilience and self-reliance," concluded Fadjar.

PT Kilang Pertamina Internasional (KPI) is a subsidiary of Pertamina engaged in the business of oil refining and petrochemicals in accordance with ESG (Environment, Social & Governance) principles. PT KPI is also registered with the United Nations Global Compact (UNGC) and is committed to the Ten Universal Principles or Ten Principles of UNGC in operational strategy as part of ESG implementation. PT KPI will continue to conduct its business professionally to achieve its vision of becoming a world-class oil refinery and petrochemical company with environmental awareness, social responsibility, and 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.**