Pertamina's Excellent Performance in the Second Year of the Pandemic

January 2, 2022 - Entering the second year of the pandemic, Pertamina continues to show positive and excellent performance in various sectors. The pandemic did not dampen Pertamina's efforts to continue working relentlessly to realize national energy resilience and independence and the sustainability of a more prosperous future.

With the spirit of Energizing You, which has become Pertamina's tagline throughout 2021, it has provided extraordinary enthusiasm, motivation, and spirit to always provide positive energy for Indonesia's advancement.

In the second year of the pandemic, various milestones and major achievements were successfully achieved by Pertamina in its 64th age. An age that shows maturity and is full of wisdom. In line with the transformation within Pertamina and the world's energy transition trend, in 2021, Pertamina promoted Go Sustainable, Go Green, Go Collaborative, Go Digital, Go Productive & Efficient, and Go Global.

Go Sustainable

Go Sustainable is Pertamina's full commitment in implementing Environmental, Social & Governance (ESG) aspects in running its business and supporting the Sustainable Development Goals (SDGs).

In 2021, Pertamina succeeded in raising its ESG rating significantly to medium risk with a value of 28.1 and was in 15th position out of 251 world companies and seventh Percentile among global oil and gas companies.

Pertamina is also committed to managing sustainable energy by increasing its clean energy portfolio by 17 percent in 2030 and reducing greenhouse gas emissions from 27 percent to 30 percent in 2030.

Pertamina continues to distribute environmentally friendly energy to rural areas as well through Pertashop, 3,218 outlets were built as a guard for distributing environmentally friendly fuel in rural areas.

In 2021, Pertamina has also succeeded in completing the Government's assignment in 1 Price Fuel (BBM 1 Harga) in the 3T region. From 2017 to 2021, Pertamina has succeeded in building 321 BBM 1 Harga. Residents in the 3T area can also access energy at affordable prices.

On the environmental side, Pertamina is committed to realize the sustainability of rare flora and fauna life. Pertamina has succeeded in conserving 87 endemic animal species, conserving 52 endemic plant species, and conserving various types of mangroves in 28 Pertamina's operational areas.

Currently, Pertamina is implementing the requirements of several standards that apply in the world such as International Organization for Standardization (ISO) ISO 14001:2015 regarding Environmental Management, ISO 45001:2018, ISO 50001:2018 regarding Social Responsibility, ISO 37001:2016 regarding Energy Management, ISO 27001:2013 regarding Anti Bribery Management System, ISO 27001:2013 regarding Information Security Management Systems, and ISO 26000:2010 regarding Social Responsibility.

Go Green

Go Green is Pertamina's commitment to carry out a strategic energy transition program to realize environmentally friendly energy based on NRE. To achieve this big target, Pertamina has 8 NRE initiatives.

First, increasing geothermal generating capacity from 672 MW in 2020 to 1,128 MW in 2026. Second, starting an initiative to utilize green hydrogen in Indonesia which will use electricity from Pertamina's geothermal field with a total potential of 8,600 kilograms of hydrogen per day. Third, participating in the JV Indonesian battery company by producing 140 GWh batteries by 2029 and developing an EV battery ecosystem including swapping and charging businesses. Pertamina has also carried out a pilot project for 6 Public Electric Vehicle Charging Stations construction in 6 areas in DKI Jakarta and Tangerang. Fourth, increasing the installed capacity of NRE power plants from 1.9 MW in 2021 to 10 Gigawatt (GW) in 2026. Fifth, gasification of 1,000 kilotonnes per annum (KTPA) through a methanol plant construction which is planned to be on stream by 2025 as well as DME development with a capacity of 5,200 KTPA. Sixth, building a green refinery or an environmentally friendly refinery that produces palm oil-based green energy products. The production capacity of Green Diesel D100 is increased to 3,000 barrels per day in 2022 and 26,000 barrels in 2024. Seventh, bioenergy development until 2026 consists of 153 MW of biomass or biogas, bio blending gasoil & gasoline, and vegetable crude oil from algae and ethanol 1000 KTPA with a target to be on stream by 2025. Eighth, implementing a circular carbon economy in several areas including recycling for biomass and biogas, reducing through solar PV, EV, LNG bunkering, and reusing through CO2 for EOR and methanol which has been successful in reducing carbon emissions by 6 million tonnes in 2020.

Since mid-2020, Pertamina has also implemented the Blue Sky Program (PLB) which has succeeded in reducing carbon emissions by 12 million tons. As for the household sector, in 2021, Pertamina succeeded in completing 107 thousand household gas connections in 21 regencies/cities. Currently, household gas customers reach 590 thousand customers spread across 67 regencies/cities in 17 provinces.

Go Collaborative

Go Collaborative is Pertamina's effort and commitment to continue innovating and collaborating as the locomotive of the national economy and industry.

Pertamina has collaborated in providing energy with various global oil and gas companies such as ExxonMobil for Carbon Capture Utilization and Storage (CCUS). Pertamina is also collaborating with Masdar and ACWA for the development of renewable energy power plants in the Upstream and Refinery working areas.

Pertamina is carrying out a SOEs synergy with PLN to provide supplies and develop LNG infrastructure in 56 locations. Moreover, Pertamina together with PLN and Pupuk Kujang also continue to improve the reliability and distribution of gas supply by 200 BBTUD for the electricity sector and 25 BBTUD for the fertilizer sector.

Pertamina has also collaborated with BUMD to increase the utilization of natural gas with a potential of 80,000 connections for DKI Jakarta and 31,800 connections in West Java and Central Java.

Throughout 2021, Pertamina has executed 255 contracts/projects with TKDN that reaches 69.6 percent, as a form of support for the growth of the domestic industry.

Amid the Covid-19 pandemic, Pertamina collaborated with the community, by supporting 250 MSMEs to go digital and global through Pertamina SMEXPO 2021. During these two years, being at the forefront of helping the community face Covid-19. Building 7 Covid-19 Special Hospitals with a capacity of 1,200 beds and distributing various aids with a value of IDR 2.1 trillion.

Go Digital

Go Digital is an effort to digitize Pertamina's business aspects to increase the speed of decision-making.

In 2021, Pertamina has built and operated the Pertamina Integrated Command Center (PICC). Pertamina's big data integration center from upstream to downstream is operated on September 1, 2021, which plays an important role in monitoring production and services to the community.

Pertamina has succeeded in digitizing upstream, processing, and downstream. On the upstream side, an Integrated Optimization Decision Support Center (IODSC) has been built so that it can significantly reduce the potential loss of production in the Rokan Block with a benefit value of more than USD 200 million.

Pertamina is also the first energy company in Asia to use Enhanced Full Tensor Gradiometry (eFTG) technology. With this digital technology, Pertamina has conducted an oil and gas survey in the Bintuni and Salawati Basins, West Papua with an area of 45 thousand square km.

Digitization at the refinery is carried out through the Predictive Maintenance Online (PMO) program. While the downstream digitization is carried out through digitization at all Pertamina petrol stations so that it can be monitored in real-time. Pertamina has also succeeded in digitizing shipping management so that it can be monitored directly.

Go Productive & Efficient

Go Productive & Efficient is Pertamina's effort to consistently carry out the tasks assigned by the government properly and still excel. Amid the challenges of the pandemic, Pertamina continues to carry out the duties and mandates of the government in realizing national energy security.

In 2021, Pertamina got the mandate to manage the Rokan Block. Pertamina carries out this mandate by increasing production and efficiency and by drilling 118 wells thereby increasing production to 162 thousand barrels per day. This achievement contributed to state revenue of IDR 2.7 trillion. Pertamina has also successfully completed the construction of 2 giant tankers, which are VLCC Pertamina Pride and Pertamina Prime with a capacity of 2 million barrels.

Pertamina also continues to complete the RDMP and GRR as well as the development of petrochemicals as one of Pertamina's future businesses.

Go Global

Go Global is Pertamina's effort to expand its business overseas and encourage its subsidiaries to increase competitiveness in the global market.

In 2021, Pertamina is the only Indonesian company to enter the Fortune Global 500 at number 287. Among the challenges, Pertamina has won no less than 250 awards on a global and national scale.

On the upstream side, Pertamina has spread its wings in 13 countries from Algeria to Venezuela. Oil and gas fields in foreign countries contributed 49.9 million barrels with a value of USD 2.8 billion sent to Indonesia.

On the downstream side, Pertamina has succeeded in exporting superior avtur and lubricants. Pertamina's aviation fuel services are available in 128 locations in 47 countries. While Pertamina's lubricant products have been exported to 14 countries with the largest markets in Asia, Africa, and Australia.

Most recently, Pertamina has also succeeded in carrying out Global Branding through the construction of the Pertamina Mandalika International Street Circuit, as a form of Pertamina's support for Indonesia.**