Constantly Exceeding Target, Pertamina Commits Domestic Components (TKDN) to Move the National Economy

Jakarta, August 31, 2020 – PT Pertamina (Persero) is committed to continuously increase the Domestic Component Level (TKDN), which gradually is targeted to be 30% in 2020 until it reaches the target of 50% in 2026, to drive the national economy.

Vice President of Corporate Communication of Pertamina, Fajiyah Usman, explained that based on the legislation, Pertamina as SOE receives the mandate and responsibility to encourage the national economy movement. One of which is by continuing to increase the use of domestic products and involving domestic industry in business processes and ongoing projects.

"According to the evaluation data from Financial and Development Supervisory Agency (BPKP), for the last three years, namely 2017 until 2019, Pertamina's TKDN has reached an average of 45.8%," she said.

According to Fajriyah, as evidence of Pertamina's commitment to continuously increase the TKDN, the 2020 realization, which has only enter the middle of the year, Pertamina's TKDN has reached an average of 54%, where TKDN in the form of goods is 43%, while in service reached 65%. The value is higher than the TKDN standard of the 2020 Pertamina's project of 30%.

Pertamina's consistency in strengthening the domestic component level is believed to strengthen the national industry, opens up job opportunities, and reduces the dependence on imported products. Therefore, it can move the national economy.

Fajriyah added, to ensure the domestic component level to increase continuously, Pertamina carries out TKDN strategic program through the following six steps; formulating the TKDN Work Procedure (STK) that is applicable to the entire Pertamina Group and carry out the aligning of the STK for the procurement of goods and services with the STK TKDN in compliance with regulations. Next, formulate and implement Key Performance Indicators (KPI) related to TKDN and develop a digital dashboard and e-catalog of Pertamina's TKDN. Furthermore, it also increases synergy with surveyors starting from the planning stage, monitoring realization, and TKDN compliance, and continue to strengthen synergies with the government, manufacturing industry, and banking as well as BUMN synergies in increasing TKDN.

"Pertamina continues to synergize with the government and involve domestic industries, both SOE and private. Therefore, it can ensure that the presence of Pertamina's business and projects can be expected to provide great benefits for the community and the country by moving the national economy," she said.**