S&P Stand-Alone Credit Profile (SACP) of Pertamina Improved

Jakarta, August 22, 2023 – The International Credit Rating Agency, S&P Global Ratings, has released the latest credit rating for PT Pertamina (Persero). In its report, S&P has upgraded Pertamina's Stand-Alone Credit Profile (SACP) to BBB- stable (investment grade) from the previous BB+ (non-investment grade). This achievement places Pertamina's SACP just one notch away from S&P's stable BBB rating for Pertamina. S&P evaluates that several policy implementations have demonstrated an increasingly positive business condition for Pertamina.

The timely compensation payments for the price difference in fuel sales over the past 18 months are considered to strengthened the company's finances. While performance in the downstream sector, particularly fuel sales, remains a primary consideration in rating the company, S&P also accounts the improved performance in the upstream sector.

Furthermore, CAPEX planning and realization are also deemed more prudent and capable of generating optimal cash flow.

The confidence from this international credit rating agency has been positively received by Pertamina's management. VP of Corporate Communication of Pertamina, Fadjar Djoko Santosa, stated that this positive signal indicates the promising fundamentals of Pertamina's business for foreign investors.

"This assessment serves as a positive stimulus for our ongoing corporate strategies, aiming for business expansion in fulfilling our role as an energy provider for the nation," said Fadjar.

Fadjar added that this achievement also cannot be separated from the government’s significant role in strongly supporting Pertamina's business. "Regulatory changes related to the compensation payments for the fuel’s price difference serve as evidence that the collaboration between Pertamina and the government is progressing very well, and this is viewed very positively by investors," he explained.

Apart from S&P, Pertamina has also received credit ratings from two other international agencies, namely Moody's and Fitch. Both of these rating agencies have issued Credit Ratings for Pertamina. Moody's has assigned a Baa2 rating with a stable outlook, and Fitch has assigned a BBB rating with a stable outlook.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**