Baa2 Outlook Stable, Moody's Set Pertamina's Investment Worth Rating

Jakarta, February 1, 2022 - Moody's Investor Service (Moody's), an international rating agency has re-established Pertamina as a company with investment-grade status or investment worth of Baa2, stable outlook. Pertamina is considered to have carefully maintained the growth of its core business and diversified into cleaner energy.

As an independent rating agency, Moody’s evaluates Pertamina as having a crucial role in oil and gas exploration in Indonesia and has a significant presence in the processing, fuel sales, and gas pipeline segments. Pertamina is considered to have a large-scale integrated business from upstream to downstream. Based on this, Moody's believes that support from the Government to Pertamina will remain strong, including in situations that are considered to be causing pressure on Pertamina's performance.

The government's strong support is also seen in the fuel price difference subsidization, carried out in stages since 2018. Therefore, it has an impact on strengthening Pertamina's income.

Moreover, Pertamina has also allocated a significant investment capital budget to encourage business growth. This is proof of the company's strong commitment in developing its business, including in the field of environmentally friendly energy.

The liquidity position of Pertamina is also believed to be very good.  Pertamina's financial situation shows a very strong position when compared to the short-term debt that would mature with cash availability on September 30, 2021. Although Pertamina is not a public company, the company's transparency is demonstrated by its frequent publication of financial reports.

The merging of the Rokan Block in August 2021, on the other hand, is expected to boost Pertamina's oil production and revenue, especially from the upstream side.

Vice President of Corporate Communication of Pertamina, Fajriyah Usman, welcomed the confirmation of Pertamina's rating status. According to Fajriyah, this achievement is expected to maintain investor confidence in Pertamina. Therefore, it can continue to open up opportunities for access to funding from global investors.

“There are challenges that we have to answer to improve better performance in line with the efficiency that the company runs. With this rating, we hope to be able to support Pertamina in facing the energy transition and challenges of the global energy industry, especially in meeting funding needs to realize the national strategic projects," said Fajriyah.

Fajriyah added that investors should not hesitate to invest in Pertamina Group after it has been determined to be a viable investment business because Pertamina has good financial performance and potential.

In line with the completion of the restructuring, added Fajriyah, Pertamina is expected to be more agile to realize its aspirations to become a world-class energy company with a value of USD 100 billion.

"Amid the challenges of the Covid-19 pandemic, Pertamina will continue to move aggressively to increase oil and gas production and complete various government-assigned projects to realize national energy security and independence," said Fajriyah.**