Pertamina Appreciates the Ministry of Finance for the Quarter Compensation Payment Mechanism

Jakarta, February 6, 2023 - PT Pertamina (Persero) appreciates the Government's policy of accelerating energy compensation payments. In 2022, the Ministry of Finance of the Republic of Indonesia changed the payment mechanism policy from per semester to per quarter. With this change, Pertamina's cash flow is believed to be stronger and thus can be more solid in maintaining national energy security and independence.

The President Director of PT Pertamina (Persero), Nicke Widyawati, expressed her appreciation to the Indonesian Ministry of Finance for accelerating the policy of paying energy compensation.

"With a faster compensation payment mechanism, Pertamina's cash flow will be healthier and stronger. We express our gratitude to the Government, especially the Ministry of Finance and its staff, for their full support to the company," said Nicke.

Nicke added Pertamina would maintain national energy security amid global challenges and increasing energy needs.

"After the pandemic, when many countries in the world were experiencing energy shortages and crises, Pertamina managed to maintain the energy stocks' availability and resilience, which boosted national economic growth," she added.

According to Nicke, during the nearly three years of the pandemic, Pertamina's performance has continued to show a positive trend. With healthy finances, Pertamina can continue to invest and finance strategic national projects in the energy sector. Therefore, it can provide a multiplier effect for national economic growth.

National energy security is getting stronger with the Government's policy support which provides an additional budget for fuel and LPG subsidies and fuel compensation in the 2022 State Budget.

With additional subsidies, the increase in fuel and LPG prices will be partially borne by the state. It is different to other countries, where the increase in world oil and gas prices was entirely borne by the public in the form of very high increases in fuel and gas prices.

"Fuel and LPG subsidies, as well as fuel compensation, are very appropriate shock absorbers. Thus, the inflation rate and economic growth can be maintained properly. People's purchasing power is also maintained so that national economic growth continues to be positive," said Nicke.

Pertamina has also succeeded in controlling subsidized fuel distribution through digitizing petrol stations and the MyPertamina platform. In 2022, the subsidized fuel distribution can be controlled under the quota from the Government. Fuel and LPG provision for the nation can be carried out properly. Even the one-price fuel development has exceeded the target.**