Pertamina's Restructurization Encourage More Reliable and Efficient Energy Distribution

Jakarta, July 27, 2021 – In accordance with the company's restructuring over the past year, PT Pertamina (Persero) has succeeded in reducing inventory costs to 47.9 million barrels, or equivalent to USD 3.1 billion. Previously, in 2020, the total was 80 million barrels, or the equivalent of USD 5.2 billion. There is a 40 percent reduction in costs or USD 2.1 billion that can be used for other activities.

The savings are obtained from operational integration efforts at Pertamina's Directorate of Logistics and Infrastructure at the holding level. The strategic role as an operational integrator is to ensure the distribution of energy to all corners of the country runs safely and smoothly.

As an operational integrator, all assignments from the government to Pertamina start from the distribution of certain types of fuel (JBT) and assignment fuels (JBKP), distribution of 3 kg LPG to the community, distribution of one price fuel, construction of fuel/LPG infrastructure in Eastern Indonesia, and gasification at 56 PLN power plants, must be ensured to run well.

With this task, the Directorate of Logistics and Infrastructure must ensure the reliability of all infrastructure and distribution networks owned by the holding. Therefore, they can run synergistically amidst the ongoing restructuring.

"It is our concern to have each subholding, subsidiary, and affiliate run together. Everything must be in line because currently, the infrastructure we are running follows market needs and the energy mix," said Director of Logistics & Infrastructure of Pertamina, Mulyono.

Mulyono continued, the balance between community service and optimization of profit targets for Pertamina must be met, by reducing costs, synergies, and optimizing all sub holdings.

According to him, each subholding must be independent and agile to make effective and efficient decisions. Subholding must focus on efficiency while providing benefits for the Pertamina Group.

Through the Logistics & Infrastructure Directorate, Pertamina also accelerates and synergizes government project assignments and the construction of energy distribution infrastructure. Not only fast, but the project must also support the domestic industry with the absorption of the Domestic Component Level (TKDN) according to the target.

"We also have to ensure that the government's assignment regarding the absorption of TKDN must be on target. In 2020, the target for TKDN implementation is 25 percent, and in 2021 it is 30 percent. Currently, Pertamina Group can realize TKDN above 50 percent," said Mulyono.**