Pertamina posts record net profit of Rp29.3 trillion

State-owned oil and gas firm PT Pertamina (Persero) posted a record net profit of Rp29.3 trillion in 2021 following a successful business transformation.

President director of Pertamina, Nicke Widyawati, addressing an online press conference on Pertamina’s participation in the Dubai Expo, which was accessed from Jakarta on March 18 (ANTARA/HO-Pertamina)

The 2021 transformation helped push up its consolidated net profit (audited) to US$2.046 billion or around Rp29.3 trillion, president director of Pertamina, Nicke Widyawati, said in a statement issued in Jakarta on Tuesday.

The figure was almost double compared to the 2020 net profit of Rp15.3 trillion and exceeded the 2021 Corporate Work Plan and Budget (RKAP) target by 154 percent.

In 2021, Pertamina transformed its business by increasing efficiency and production, carrying out energy transition, developing oil and gas infrastructure, and implementing the Refinery Development Master Plan (RDMP) project.

Widyawati said Pertamina’s successful transformation in 2021 was owing to the formation of the oil and gas holding with six sub-holdings: upstream sub-holding, refining and petrochemical sub-holding, commercial and trading sub-holding, gas sub-holding, integrated marine logistics sub-holding, and new and renewable energy sub-holding.

“This transformation is a strategic step to adapt to future business changes, moving more agile and faster, focusing on broader and aggressive business development,” Widyawati said.

Pertamina’s positive financial performance was also demonstrated by earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$9.2 billion.

This shows that Pertamina’s finances are in a healthy (AA) and safe condition amid the disruption and geopolitical challenges affecting the global oil, gas, and energy industry, Widyawati said.

Pertamina’s net profit was the consolidated profit of all subsidiaries from upstream, processing, to downstream.

Most of the profit was contributed by the upstream sector’s revenue, which surged due to rising Indonesian crude prices (ICP). The downstream sector remained under pressure from the high cost of fuel production, the largest component of which is crude oil, Widyawati said.

In 2021, upstream oil and gas production increased from 863 thousand oil barrels equivalent per day (MBOEPD) in 2020 to 897 MBOEPD. Thus, Pertamina contributed more than 60 percent to national oil and gas production.

In addition, with Pertamina’s massive drilling, production at Rokan Block also increased. Various efficiency programs also resulted in cost savings of US$1.4 billion.

Fuel production was also achieved according to the target, so there were no additional imports. Since April 2019, Pertamina is no longer importing solar and Avtur fuel, Widyawati said.

Pertamina has also completed the construction of two giant oil and gas tankers, namely VLCC Pertamina Pride and Pertamina Prime, which will be used for the global market.

Meanwhile, to improve fuel supply reliability in Eastern Indonesia, Pertamina has built and operated 13 new fuel terminals.

Pertamina is also running National Strategic Projects (PSN), including the Balikpapan RDMP Refinery (47 percent completion), Balongan RDMP refinery (68.5 percent completion), Cilacap Green Refinery, Tuban GRR Refinery, as well as other priority projects to strengthen Pertamina’s petrochemicals business such as Polypropylene Balongan, Revamping Aromatic TPPI, and Olefin TPPI, she said.

Integrated digitization from upstream to downstream has been one of the keys to Pertamina’s successful controlling of the production and distribution of fuel, as well as the improvement in the service quality to the community.

Through its Integrated Command Center, all operational activities can be monitored online and in real-time. The use of MyPERTAMINA application for cashless payments is increasing, and currently, it has reached more than 22 million users, Widyawati informed.

With the 2021 new energy development, in addition to the Biosolar B30 production, the Cilacap Refinery has succeeded in producing renewable diesel (100 percent biodiesel), with a capacity of 3 thousand barrels per day.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Azis Kurmala, Editor: Suharto (c) ANTARA 2022






Topic: Press release summary

Pertamina Prioritizes Comprehensive Energy Transition to Reduce Emissions

State-run oil and gas corporation PT Pertamina (Persero) has set a more comprehensive energy transition as the company’s priority program by increasing the energy mix to reduce greenhouse gas emissions. “Pertamina is committed to becoming an environmentally friendly and socially responsible company, which upholds good corporate governance,” President Director Nicke Widyawati noted in a statement on Monday.

President Director & CEO Nicke Widyawati delivers her remarks at the Pertamina-Dubai Expo Media Briefing on March 18, 2022. (ANTARA/HO-Pertamina/uyu)

According to the statement, the company has played an important role in leading the green transition in Indonesia’s energy industry and targets a 30-percent reduction in emissions by 2030. It will prioritize the development of new and renewable energy to overcome environmental problems and support the realization of Indonesia’s energy mix in 2030.

Pertamina supports the Indonesian 2022 G20 Presidency which has chosen energy transition as one of the agendas of the inter-governmental forum. As a member of the G20’s Business 20 (B20) Task Force on Energy, Sustainability, and Climate, Pertamina will strive to become a catalyst for green policy in accordance with the principles of energy security, energy equity, and environmental sustainability.

Nicke remarked that Pertamina implemented 8 strategic initiatives to develop environmentally friendly and sustainable energy. The initiatives include establishing green refineries, developing bioenergy, commercializing hydrogen, increasing gasification, initiating battery and integrated energy storage ecosystems, as well as increasing the capacity of installed geothermal power plant.

“We believe that Indonesia’s abundant geothermal resources can become a strong backbone in expediting the energy transition program in line with the government’s goal of achieving net zero emissions in 2060,” Widyawati added.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Sugiharto Purnama, Uyu Liman; Editor: Fardah Assegaf (c) ANTARA 2022






Topic: Press release summary

Pertamina Sets Initiatives to Expedite Energy Transition

PT Pertamina (Persaro), the state-owned energy company serving Indonesia as well as international markets, has set several initiatives to accelerate its energy transition toward the 2030 target energy mix and to reduce emissions, ensuring sustainability.

The screenshot of Pertamina’s Senior Vice President of Investment Management Daniel Purba at the virtual Media Briefing Pertamina-Dubai Expo, Jakarta, Friday (3/19/2022). (ANTARA/Katriana)

“Pertamina is fully committed to ensuring that we manage sustainability issues properly, aligned with international standards,” Pertamina’s Senior Vice President of Investment Management Daniel Purba stated during a virtual media briefing for Indonesia – Dubai Expo on Friday.

Pertamina has set environmental targets including reducing 2030 emissions by 30 percent to address the climate change, reducing the environmental footprint by complying with water and waste management practices, and protecting biodiversity by providing a net positive biodiverse impact, as well as other sustainable targets.

Pertamina’s strategies to drive green energy are executed through priority initiatives, including a net zero roadmap, conducting decarbonization, and improving the new and renewable energy capacity with an allocated CAPEX of 14 percent for clean, new and renewable energy. Pertamina’s commitment aligns with efforts to use domestic resources to supply domestic energy for green development and decarbonization.

Moreover, to drive new and renewable energy growth in Indonesia’s energy mix, Pertamina has also developed several projects and activities to expand the green energy portfolio, one of which is enhancing capacity from 672 megawatts (MW) in 2020 to 1,128 MW in 2026.

Pertamina has also lowered emissions by 27 percent during the 2010-2020 period in its efforts to reduce emissions, and to support Indonesia’s Nationally Determined Contribution (NDC). The target increases to 29 percent by 2030.

Also present at the media breifing, Pertamina Geothermal Energy (PGE) President Director Ahmad Yuniarto highlighted Pertamina’s commitment to developing and generating clean and green power from geothermal resources to drive green energy expansion.

Geothermal Energy (PGE) is in a good position to contribute further to emission reduction and decarbonization. Yuniarto stated that PGE had managed 14 Geothermal Working Areas, with a total installed capacity of 1.877 MW, from Aceh, along Sumatra Island, Java, Bali, and North Sulawesi.

“If you follow the ring of fire, you will find us,” he remarked. “PGE set three approaches: the co-generation approach, including steam and hot brine production to generate green electricity; the co-production approach, studying how to utilize CO2 and extract rare earth elements such as lithium, to produce green hydrogen; and the co-development approach, looking into development of the geothermal area to become ecotourism destination.

“We believe that through these three approaches of co-generation, co-production, and co-development, we are in a very good position to create more value from the geothermal resources that we have,” he affirmed.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.comn
Written by: Katriana, Editor: Rahmad Nasution (c) ANTARA 2022






Topic: Press release summary

Indonesia’s Pertamina Accelerates Energy Transition

State-owned PT Pertamina (Persero), an energy company that has been active in the global arena, reaffirmed its commitment as a company that cares about the environment, social aspects and good corporate governance, setting the energy transition program as the company’s top priority.

President Director & CEO Nicke Widyawati outlined Pertamina’s strategic initiatives for developing environmentally friendly and sustainable energy at the Indonesia – Dubai Expo media briefing on Friday. (ANTARA FOTO/ADWIT B PRAMONO)

“Pertamina is committed to being known not only as a global energy player but also as an environmentally friendly company, socially responsible and upholding good corporate governance,” said Nicke Widyawati, CEO of PT Pertamina (Persero) at the Indonesia Pavilion – Dubai Expo, on Friday (18/3).

Pertamina has played an important role in the transition of Indonesia’s energy industry by targeting the energy mix and reducing emissions, with a comprehensive reduction of GHG emissions by 30% before 2030. In addition, Pertamina will prioritize the development of New and Renewable Energy (EBT) to address environmental problems, which is in line with Indonesia’s Energy Mix by 2030.

Pertamina also supports Indonesia’s G20 Presidency, which targets energy transition as one of its main priorities. As part of the Business 20 Task Force on Energy, Sustainability, and Climate, Pertamina shares the priorities of G20 Indonesia as a catalyst for green recovery, along with the principles of energy security, energy equity and environmental sustainability.

Strategies include the development of green refineries and bioenergy, and the commercialization of hydrogen, while Pertamina has also continued to increase the use of new and renewable energy as well as implement carbon capture, utilization, and storage (CCUS) to increase production in several fields, she informed.

Widyawati said that Indonesia’s geothermal resources are abundantly spread across the Ring of Fire. Hence, she believes that these resources could be a strong backbone to accelerate the energy transition, which is in line with the government’s goal to achieve net-zero emissions.

“We believe that by realizing strategic programs in collaboration with many partners across countries, energy sustainability is not merely just a discussion, but also a concrete action in which the impacts can be experienced by everyone,” said Nicke, concluding her remarks.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Katriana, Editor: Rahmad Nasution (c) ANTARA 2022






Topic: Press release summary

Pertamina to expand geothermal capacity by implementing ESG

Pertamina Geothermal Energy (PGE) has planned to expand its installed geothermal power plant capacity in order to provide greater contribution to the reduction of greenhouse gas emissions in Indonesia, and support achieving the sustainable development goals (SDGs) on climate action, through implementing Environmental, Social, & Governance (ESG) based programs.

PT Pertamina Geothermal Energy’s (PGE’s) geothermal power plant. [ANTARA/HO-PGE]

“Our expansive plan will help Indonesia to achieve a net zero emissions target by 2060,” said the Chief Financial Officer (CFO) of Pertamina Geothermal Energy, Nelwin Aldriansyah, during a discussion session at the UN Global Compact on responsible business conduct and climate ambition, held virtually on Wednesday, Nov 10.

The UN Global Compact is a “voluntary initiative based on CEO commitments to implementing universal sustainability principles, and taking steps to supporting UN goals. Pertamina reiterates its commitment to achieving SDGs through the implementation of Environmental, Social, and Governance (ESG) based programs in their operational areas.”

According to Aldriansyah, PGE is planning to issue its own wind green bonds in the first half of next year (2022) in addition to PT Pertamina’s plan to issue green bonds in 2022. “Proceedings of green bonds will be used to refinance our existing conventional loans and also to finance our capex (capital expenditure) plan in developing new geothermal projects in Indonesia,” he said.

With such an initiative, PGE would be expected to gain an additional 375 megawatts (MW) over the next four years, from the current installed capacity at its geothermal power plant of 672 MW.

“We are aiming to have a total installed capacity to 1,500 megawatts by 2030,” Aldriansyah remarked. He expressed optimism that with such an additional capacity, PGE would contribute significantly to Pertamina’s plan to decarbonize its assets and reduce emissions by 30 percent by 2030.

“At our current capacity, we currently reduce emissions by about 3.5 million tonnes of carbon dioxide (CO2) per annum. And with the additional capacity, we expect to reduce the emissions further, to six million tonnes annually over the next four years, and to 12 million tonnes by year 2030,” he stated.

Aldriansyah stated that the government of Indonesia aims to improve its energy mix with the use of renewable energy sources from the current 12 percent to 23 percent by 2025. He expressed confidence that the increased use of energy mix would provide ample room for renewable energy companies such as Pertamina Geothermal Energy to expand installed capacity and provide higher contributions to emissions reduction.

The CFO believes that financing plans, including the issuance of green bonds next year, can support the capacity growth in the future, which will contribute significantly to Pertamina’s objective to decarbonize its asset portfolio. “It is also aligned with the Indonesian Government’s commitment to Paris Agreement,” added Aldriansyah, “And with goal No.13 of the sustainable development goals (SDGs) on climate action.”