ESG Implementation and Mainstay Innovation Bring PT Kilang Pertamina Internasional Group to Win a Prestigious Award from the Ministry of Energy and Mineral Resources of the Republic of Indonesia

Jakarta, October 11, 2022 – PT Kilang Pertamina Internasional (PT KPI), as Subholding Refining & Petrochemical PT Pertamina (Persero), consistently implements ESG (Environmental, Social, and Governance) activities in line with the company's sustainability policy with several flagship innovation programs to improve Pertamina's refinery management performance and responsible for the environment. Through the ESG implementation and flagship innovation, PT KPI has won various prestigious awards in the 5th Subroto Awards organized by the Ministry of Energy and Mineral Resources (ESDM) of the Republic of Indonesia.

The Subroto Awards is the highest award given by the Ministry of Energy and Mineral Resources (ESDM) to stakeholders with extraordinary breakthroughs in advancing the ESDM sector. The appreciation award supports the government's efforts in anticipating changes in global energy policies, which started to transition to clean, low-emission, and environmentally friendly energy in achieving Net Zero Emissions by 2060, in accordance with Indonesia's commitment at COP 26.

In the Energy Efficiency, Pertamina RU IV Cilacap Refinery received the highest appreciation for its success in implementing energy efficiency and conservation efforts. It encourages the government's to achieve the national energy efficiency target of 17% by 2025 and a 29% reduction in GHG emissions by 2030.

Energy efficiency is Pertamina RU IV Cilacap Refinery's mainstay in implementing the Environmental Social and Government (ESG) program to realize the environmentally friendly Pertamina RU IV Cilacap Refinery through energy efficiency and efforts to reduce greenhouse gas emissions. Reducing Greenhouse Gas Emissions is in accordance with the Sustainable Development Goal, SDG no. 13, namely Handling Climate Change.

Another proud achievement was through the Pertamina Internasional RU III Plaju Refinery in the Oil and Gas safety category without losing working hours due to work accidents, where RU III Plaju recorded 113,885,358 Safe Working Hours cumulatively until August 31, 2022.

Finally, through its subsidiary PT KPI, PT PRPP received the 2022 Subroto Awards from the Ministry of Energy and Mineral Resources in Human Resource Competency Development and the Energy and Mineral Resources Sector in the Best Stakeholder category of HR Competency Development Through Vocational Education, namely the quality education, 4th SGD and decent work and economic growth in the 8th SGD.

This award was given for the PRPP and the Tuban GRR Project's contribution to providing opportunities for 47 young people from Jenu District, Tuban Regency, to pursue higher education through the Advanced Education Scholarship Program at PEM Akamigas.

PT KPI Officer Wins Dharma Karya Award

Several PT Pertamina International refineries awards were also achieved through the PT Pertamina International refinery officers who successfully innovated and implemented the Company's ESG such as Dharma Karya Energi and Mineral Resources Pertamina International Refinery RU II Dumai, Pertamina International Refinery RU III Plaju, and Pertamina International RU VI Balongan refinery.

Dharma Karya Muda Award was obtained by RU II Dumai for the RU Dumai officers' creation and innovation that adhered to the Continuous Improvement and Environmental, Social, and Governance (ESG) principles. This innovation creates New High-Quality Gasoil 50 ppm, in the form of Pertadex 50 ppm and Speed ​​Diesel (HSD) 50 ppm, with low emissions and Euro 4 international standard. This product development innovation has been initiated since 2017, marked by a 50 ppm production study and a 50 ppm Gasoil HQ production plant trial.

The impact of this innovation is an environmentally friendly product because of the low emissions and international standards. In the future, innovation can be increased from 50 ppm (Euro 4) to 10 ppm (Euro 5), increasing production capacity and sustaining production and distribution.

This innovation has a direct positive impact on the company's operational and financial performance aligned with the ESG implementation principles within PT KPI in accordance with no. 7 Sustainable Development Goals/SDGs No. 7, the Clean and Affordable Energy.

Besides that, the Plaju Refinery Unit III (Pertamina Plaju Refinery) also made an achievement after being awarded the Dharma Karya Muda award from the Ministry of Energy and Mineral Resources of the Republic of Indonesia based on the Decree of the Minister of Energy and Mineral Resources Number 237.K/KP.06/MEM.S/2022 regarding the ESDM Dharma Karya Award. 2022. The achievements are because of RU III Plaju's innovation as a business initiator in the International Maritime Organization (IMO) 2020 standard fuel production on a national scale through Valuable Product Marine Fuel Low Sulphur (MFO LS) production and MFO LS MFO LS High Viscosity (MFO LS HV) in Kilang Pertamina Plaju.

The innovation makes MFO LS a high-value product, from its stratification and Pareto results. In addition, this innovation has also contributed to Value Creation or the company's added value creation to increase potential profit. In March 2022, MFO Low Sulfur 180 centistoke (cSt) products managed to penetrate the international market, first being exported to Singapore with an average of 200 MB per month. This environmentally friendly fuel innovation supports SDG number 7 (access to reliable and sustainable energy), number 9 (sustainable industry and innovation), and number 13 (overcoming climate change).

Finally, the Dharma Karya Muda award achieved by RU VI Balongan is the first achievement. This award is given to business entities, both BUMN and private, that could create innovations in the energy and mineral resources sector and postively impact other parties.

This success is due to the Project Collaboration Improvement (PC Prove Go Foam) RU VI Team innovation in product diversification of Gas Oil For Anti Foam (Go Foam). The Go Foam can reduce and inhibit foam formation in industrial processes. Through product diversification innovation, Go Foam, produced from this CDU unit, could increase the company’s positioning in the specialty chemical market and company margins.

President Director of PT Kilang Pertamina Internasional, Taufik Adityawarman, said that the innovations by PT Pertamina International Refinery officers were the Company's efforts to increase competitiveness to survive the changing times.

"The products produced by the Pertamina Refinery, in the form of fuel and existing chemical products as well as new products resulting from innovation, must go through laboratory tests. Thus, the products are in accordance with the specifications recommended by the government," Taufik Adityawarman said.

The Minister of Energy and Mineral Resources of the Republic of Indonesia, Arifin Tasrif, emphasized the importance of quality human resources who have the capacity to master science and technology to create innovations for the energy and mineral resources development in the future, including the oil and gas sector.

"I appreciate the efforts and innovations developed by the 2022 Subroto Award recipients in advancing the ESDM sector," Arifin said. According to him, the ESDM stakeholders achievements and contributions have great meaning for the nation's progress.

"Hopefully, with this Subroto Award, all stakeholders in the ESDM sector will continue to strengthen their intention, contribution, and hard work together to realize ESDM that can provide optimal benefits for all parties," Arifin Tasrif.**