Post Restructuring, Pertamina Consistently Focuses on Serving Communities including Remote Areas
Jakarta, July 29, 2020 - PT Pertamina (Persero) ensures that they remain committed and consistently focused on serving the community, including the needs of fuel oil and gas throughout the country.
Vice President of Corporate Communication of Pertamina, Fajriyah Usman, explained that after the restructuring of the company, which had been carried out in June 2020, Pertamina is still fully committed to serving the community and providing greater benefits to all concerned parties.
"Pertamina ensures that with this restructuring, the service to the public will be better. It is because Pertamina will be more focused on carrying out service and operation excellence. This assignment includes the supply and distribution of PSO BBM and the implementation of One Price Fuel or “BBM Satu Harga”," she said.
According to Fajriyah, IPO or initial public offering, which is planned to be carried out in sub holdings or subsidiaries, is an alternative way for Pertamina Group to obtain funding for future business development. It is an addition to other mechanisms such as partnership and bond and banking funding. The IPO plan will not be implemented at the Pertamina level but in operational subsidiaries. Assignments from the Government will remain as Pertamina's responsibility. Pertamina will continue to be committed to carrying them out through Pertamina's internal functions as well as operationally in the sub-holding and subsidiaries.
"IPO is an alternative way to get funding for business development, and it will not affect the performance of the Government's assignment to Pertamina," she said.
As a form of commitment, continued Fajriyah, throughout 2017 - 2019, Pertamina has succeeded in distributing BBM in 161 points of “BBM Satu Harga” throughout Indonesia. While in 2020, the “BBM Satu Harga” will increase with a target of 83 points. As of July 2020, the implementation of “BBM Satu Harga” with the progress, specifically 77 percent is in the process of development and 15 percent in the licensing process.
"At the end of July, it is scheduled that there will be an addition of 5 “BBM Satu Harga” points, which will operate in West Nias - North Sumatra, Dompu NTB, Tojo Una-Una-Central Sulawesi, Angkinang - South Kalimantan, and East Seram - Maluku", explained Fajriyah.
As for the gas services by the State Gas Company (PGN) as the Gas Sub holding, Pertamina insists that all assignments from the Government continue to run according to the target.
As is known, PGN became the first sub-holding to carry out the IPO implementation since 2003. Since then, the construction of natural gas transmission and distribution infrastructure has increased. It is through the development of a distribution that extends to several new areas, followed by the development of a household gas network around the economic center that is grown by the distribution pipeline.
Since the IPO, especially the development of PGN's jargas, has shown a significant increase in house connection. It increased from around 64,800 House Connections (SR) to around 399,600 SR in 2019. The construction of jargas has also served remote areas such as Aceh, North Kalimantan (Tarakan), East Kalimantan, South Sulawesi, and Sorong.
"From 2000 to 2019, the distribution of independent jargas and APBN jargas built by the PGN Group were 399,600 SR in 17 provinces and 60 regencies/cities in Indonesia, with a total pipeline infrastructure of around 3,800 km," said Fajriyah.
In 2020, despite being constrained by the COVID-19 pandemic, PGN is consistent in continuing to build household jargas, with a target of 127,800 SR in 23 districts/cities.
Along with energy security at an affordable price for the community, jargas program provides benefits for the use of TKDN up to 70%. It can absorb a local workforce of around 39,000 workers.
PGN contributes to placing household jargas as a top priority, following the Government's RJPMN target of 4 million SR, LPG savings of Rp 3.3 trillion, and reduction of LPG imports by Rp17, 25 trillion in 2024.
"BBM Satu Harga assignment and construction of jargas is Pertamina Group's commitment in providing easy access, reliability and services in providing energy for all Indonesian people," concluded Fajriyah. **