Commitment to Green Procurement, Pertamina Implements GCG Compliance for Business Partners at Vendor Day 2024

Jakarta, July 12, 2024 – PT Pertamina (Persero) is committed to implementing Good Corporate Governance (GCG) in all its business activities, including with its active business partners or vendors.

It was conveyed by the Director of Business Support of Pertamina, Erry Widiastono, during Vendor Day 2024 at Grha Pertamina (07/11/2024).

“The role of business partners is significant in supporting our business journey. Therefore, it is necessary to ensure that all business partners understand the policies and comply with the applicable laws so that vendors have integrity, capability, and credibility in supporting Pertamina's operations,” Erry explained. “It is also Pertamina's responsibility and commitment to fostering vendors as strategic business partners,” he added.

Erry emphasized to all of Pertamina's business partners that there should be no tolerance for fraud and prioritize the Green Procurement commitment. Pertamina also provided advice for continuous improvements to its vendors as business partners.

The first aspect is the capability and capacity of product or service delivery. Pertamina needs strategic business partners to support its operations by enhancing competencies and capabilities.

Moreover, capacity is also crucial in supporting Pertamina's business operations, considering the increasing number of Pertamina Group entities, as well as Pertamina's commitment to using domestic products in line with government programs.

The second aspect, according to Erry, is adapting digital procurement of goods and services. He emphasized that digital and technology transformation is necessary at Pertamina and needs integration from upstream to downstream, including in the goods and services procurement process.

Implementing an integrated application system from planning and sourcing processes to contracts and payments is Pertamina's target realized through the digital platform pipeline soon, “One Procurement to Pay.”

“It is undeniable and unavoidable that the speed of the procurement process for goods and services is crucial. Additionally, aspects of accountability, traceability, and competitiveness are also essential,” he asserted.

Pertamina is developing an Electronic Catalogue/e-Catalogue to fulfill the company's operational needs more quickly and digitally.

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, added that the annual Vendor Day 2024 is Pertamina's appreciation to its business partners in the goods and services procurement process.

“Through this event, it is expected that Pertamina's strategic partners can commit to meeting the legitimacy aspects of Environmental, Social, and Governance (ESG). To achieve this, we are developing a new platform related to Green Procurement, which also emphasizes the fulfillment of Domestic Component Level (TKDN) and aspects of Health, Safety, Security, and Environment (HSSE),” Fadjar explained.

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.**