Pertamina Hulu Energi Wins Sustainable Business Award from UN Global Compact 2024

Jakarta, July 28, 2024 - Pertamina Hulu Energi (PHE), as Pertamina's Upstream Subholding, continues to commit to growing with the community and protecting the environment through various sustainable programs. By consistently maintaining this commitment, PHE has received the SDG Innovation Accelerator for Young Professionals 2024 award organized by the Indonesia Global Compact Network (IGCN) at the Grand Ballroom, BRIN Gatot Subroto, Jakarta, on July 25, 2024.

The event was attended by Pungkas Bahjuri Ali, representing the Deputy for Maritime and Natural Resources from the Ministry of National Development Planning of the Republic of Indonesia/National Development Planning Agency (Bappenas). Other distinguished attendees included Gita Sabharwal, the UN Resident Coordinator in Indonesia; Josephine Satyono, Executive Director of the Indonesia Global Compact Network (IGCN); and Gatot Dwianto, Principal Engineer at BRIN.

The event featured 15 companies that are members of the United Nations Global Compact (UNGC), with 16 groups of innovators comprising young professionals from both state-owned enterprises and private companies.

PHE showcased its flagship program, "Waste To Energy For Community" (WASTECO), part of the Pertamina Desa Energi Berdikari initiative, operated by Pertamina Hulu Mahakam. The Wasteco program offers a solution for managing waste into methane gas to provide household gas needs and support MSMEs in Kelurahan Manggar, Balikpapan.

"Through Wasteco, we encourage the community to increase their understanding of climate change and optimize renewable energy development from local resources. The Wasteco innovation is developed to support more affordable, reliable, and sustainable energy access based on new and renewable energy (NRE) for the community," said Arya Dwi Paramita, Corporate Secretary of Pertamina Hulu Energi.

The Wasteco program integrates the company's core competencies into the program by adopting six oil and gas technologies, including wellhead, gas metering, manifold, separator, delivery pipe, and flaring. This innovation has been patented by the Ministry of Law and Human Rights of the Republic of Indonesia since June 14, 2023, indicating that the method of managing methane gas generated from organic waste into NRE using oil and gas technology is the first in Indonesia.

The Wasteco program has successfully processed waste, reduced carbon emission potential, and generated economic benefits for the local community with a circular economy concept.

"This award provides an opportunity to disseminate the Wasteco innovation to the international stage, and hopefully, it will bring positive recognition to Pertamina Hulu Energi on a global scale," Arya concluded.

As of June 2024, the Wasteco program has been distributed to 380 household connections, benefiting 1,500 people and 28 MSMEs, utilizing 820,800 m³/year of methane gas from waste. Through Wasteco, the community can save up to IDR 456 million per year on household expenses. Additionally, the Wasteco program has reduced carbon emissions by 296,356 tons CO2eq/year.

In the SDG Innovation Accelerator For Young Professionals, a certificate of completion was also given to each innovator who participated in the online learning modules for approximately six months. Appreciation was also given to Arya Dwi Paramita, Corporate Secretary of Pertamina Hulu Energi, as one of the mentors in this event.

Vice President of Corporate Communication Pertamina, Fadjar Djoko Santoso, stated that Pertamina is innovating in promoting the transition to clean energy. The role of the upstream subholding in Wasteco not only contributes to economic improvement for the community and emission reduction but also directly impacts the promotion of transitional energy for daily needs.

"Pertamina Group is committed to supporting the Indonesian government's NZE target by consistently implementing ESG aspects in all business lines," said Fadjar.

The SDG Innovation Accelerator For Young Professionals is an opportunity for companies to participate in the United Nations (UN) Global Compact, empowering young talents and organizations to collaborate and accelerate business innovation toward the Sustainable Development Goals (SDGs).

PHE will continue to invest in managing upstream oil and gas operations and businesses following ESG principles. PHE has been a member of the United Nations Global Compact (UNGC) since June 2022. PHE is committed to the Ten Principles of the UNGC in its strategy and operations as part of ESG implementations. Supporting the aspect of Governance, PHE is also consistently committed to Zero Tolerance for Bribery by ensuring fraud prevention and maintaining a bribe-free company. One way is by implementing an Anti-Bribery Management System (SMAP) that is ISO 37001:2016 certified.

PHE continues to develop prudent and excellent operations management domestically and internationally to become a world-class environmentally friendly, socially responsible, and well-governed oil and gas company.**