First Semester of 2021, Pertamina Recorded Profit of IDR 2.6 Trillion

Jakarta, August 16, 2021 - PT Pertamina (Persero) has successfully passed the challenges of semester 1 of 2021 by posting a profit of USD 183 million or equivalent to IDR 2.6 trillion. Compared to the same period in 2020, where the company had suffered a loss of US$ 768 million, Pertamina managed to increase its profit by USD 951 million or equivalent to IDR 13.6 trillion.

This positive performance in the first half of 2021 was driven by growth in sales, which reached USD 25 billion, and EBITDA of USD 3.3 billion, both of which increased by more than 22% compared to last year.

Acting Senior Vice President of Corporate Communications and Investor Relations of Pertamina, Fajriyah Usman, explained that the company will still be impacted by the prolonged pandemic in 2021. Fluctuations in crude oil prices affect Pertamina's performance. Indonesia Crude Price (ICP) has almost doubled from USD 36.5 as of June 2020 compared to USD 70.06 in June 2021.

Increasing Revenue and Profit from Upstream Sector

Pertamina's upstream oil and gas production reached the target of 850 thousand BOEPD. With the increase in ICP and efficiency in development costs and production costs, the Upstream sector recorded Revenue and Profit above target.

Increase in fuel sales volume

In terms of downstream sales, fuel demand is gradually recovering. Although, it is still lower than normal conditions before the COVID-19 pandemic. Until June 2021, the average fuel demand was recorded at 126 thousand KL per day, or an increase of about 8% from June 2020, which was around 116 thousand KL per day. However, this figure is still 6% lower than the normal demand before the pandemic in 2019.

Pertamina does not increase fuel prices even though ICP rises sharply

"The high price of oil has put significant pressure on the cost of production of fuel. However, Pertamina has not increased the fuel price due to the consideration of the decline in people's purchasing ability due to the Covid-19 pandemic in early 2021. Of course, Revenue and Profit from the Downstream sector will be quite depressed, but this is Pertamina's contribution to helping the community amidst the Covid-19 pandemic," said Fajriyah.

Cost efficiency and Revenue enhancement to improve company performance

In facing this challenging situation, continued Fajriyah, Pertamina's Directors, Commissioners, and Employees continued to take strategic steps to increase revenue (revenue enhancement) and also efficiency (cost leadership) in all lines.

Revenue enhancement efforts in addition to supporting the company's revenue said Fajriyah, Pertamina encourages all Subholding and subsidiaries to strengthen operational performance, including through:

• Increased production and lifting and increased gas monetization in all Upstream Oil and Gas Working Areas (WKs), including the acceleration of an aggressive and massive work plan in the Rokan WK, which as of August 9, 2021, has been managed by Pertamina.
• Optimization of production in refineries with high-value products and increasing sales of refinery and petrochemical products both domestically and exports to foreign markets.
• Accelerating the development of PLTS both within Pertamina and the external market and strengthening the battery ecosystem through the activation of swapping & charging of EV Batteries at SPKLU, which are integrated with gas stations.
• Acceleration of LNG commercial and optimization of Arun infrastructure as a distribution center in Asia.
• Additional revenue opportunities for ship rental and logistics services to Pertamina external for LPG, BBM and Petrochemical cargo.

As for the efficiency program, Pertamina is seriously committed to various optimizations, including through:

• Reform of supply chain operation pattern for crude, fuel, and LPG.
• Regionalization in Upstream Subholding from planning stage to execution to optimize resource sharing.
• Flexibility of crude procurement to increase Gross Refining Margin.
• Preventive maintenance throughout the refinery.
• Centralized Procurement.
• Reduction of losses by applying digitization.
• Implementation of new ways of working (agile working).

Pertamina supports the Government in handling Covid-19

"Despite the difficult conditions, Pertamina's services to the community are still carried out well. Support to the Government in handling COVID-19 has also never stopped. Through the construction of 3 Emergency Modular Hospitals (Patra Comfort, Simprug, and Tanjung Duren) and the operation of the Hajj Dormitory Extension Hospital Pondok Gede, Pertamina managed to add nearly 1,000 treatment beds. This figure does not include the Covid referral hospital throughout Indonesia by Pertamina Bina Medika," said Fajriyah.

Since the pandemic, Pertamina Group has poured trillions of rupiah to the community facing the pandemic. This Energy SOE service also includes assistance for 315 ventilators for 30 hospitals and being directly involved in accelerating the distribution of more than 4,300 tons of medical oxygen to 366 hospitals spread across nine provinces.

Pertamina supports the Government in empowering MSMEs

Pertamina's service is not limited to the health sector. To help restore the community's economy, Pertamina also runs an empowerment program for more than 13,000 affected MSMEs to survive amidst the pandemic and even upgrade to Go Global.

Amid a pandemic, Pertamina acts as the locomotive of the national economy

Although demand has not returned to normal, Pertamina continues to carry out operations in the entire energy ecosystem, from upstream to downstream. It includes the construction of various National Strategic Projects, with an average Domestic Component Level (TKDN) of more than 57%, far above the target of 30%. Thus, Pertamina can maintain the survival of 1.2 million direct workers, and create a multiplier effect on around 20 million workers indirectly. It is Pertamina's contribution to continue to be the locomotive of the national economy.

All of Pertamina's achievements are inseparable from the results and benefits of the restructuring that has gone well where the legal endstate for several Subholdings has been achieved and is in the process of completing all stages.

"With strategic efforts and management breakthroughs in all business sectors, Pertamina hopes to pass the second year of the COVID-19 pandemic with performance that remains positive. In addition to being committed to carrying out the mandate to maintain national energy security and services, Pertamina also plays a role in driving the national economy, providing benefits as much as possible for the state and society, not only profit-oriented," said Fajriyah.**