Pertamina turns to nature-based solutions to balance climate, energy

State-owned energy company PT Pertamina has prepared some strategies to balance climate resilience and energy security, which include the development of nature-based solutions.


Pavilion Indonesia at COP27 UNFCCC, Sharm El Sheikh, Egypt (7/11/2022) (ANTARA FOTO/Saptono/aww)


Senior Vice President of Research Technology and Innovation at Pertamina Oki Muraza conveyed this information during a discussion at the Indonesian Pavilion on the sidelines of COP27 in Sharm el-Sheikh, Egypt, on Wednesday (November 9, 2022).

During the discussion, Muraza said that Pertamina has declared its commitment to achieving net-zero emissions by 2060, and the commitment is in line with the emission reduction policy promoted by the Indonesian government.

As part of the commitment, Pertamina is implementing two main strategies: decarbonizing all of its current businesses and building new businesses based on green and sustainable principles.

The decarbonization measures taken by the company have included pushing energy efficiency, zero-flare oil and gas activities, and carbon capture and utilization.

“Some other measures include increasing green electricity in Indonesia, building the electric vehicle ecosystem, and developing nature-based solutions,” Muraza added.

He further explained that the nature-based solution policy itself is not something new to Pertamina. However, synergy is needed between nature-based solutions and the energy sector, and both should go hand-in-hand.

Nature-based solutions involve short- and medium-term policies that can support the acceleration of climate technology implementation, which is a long-term policy.

According to Pertamina, those solutions need to be considered while designing carbon mitigation strategies.

“So, we have to not only be able to capture carbon dioxide with natural plants, but also produce something… including rubber and renewable hydrocarbon products. In the end, we expect to have other products from nature-based solutions,” Muraza said.

He highlighted three pillars that need to be considered in the development of nature-based solutions for realizing business resilience amid the challenges posed by climate change. The three pillars are community involvement, biodiversity and conservation, and sustainable economy.

In line with these, some vegetations that have potential as nature-based solutions, such as Calophyllum inophyllum and Pongamia pinnata, have been developed since they are beneficial for biofuel development.

In addition, the company believes that the development of the mangrove ecosystem can also be a nature-based solution because it could help absorb 264 tons of CO2 per hectare.

“We have conducted several studies with universities and government institutions on how to promote crops that can provide raw material stocks for green refineries,” Muraza said.

He also outlined several initiatives, for instance, capturing methane gas, which can be used for power generation and other purposes, for example, as compressed natural gas.

In addition, the energy company is also developing other initiatives, including processing liquid waste into biomethane and solid biomass waste into ethanol.

Some more initiatives undertaken by Pertamina are the establishment of Carbon Capture and Storage (CCS) centers on the islands of Java, Sumatra, and Kalimantan as well as the development of geothermal utilization in Indonesia.

Contact: Brahmantya Satyamurti Poerwadi, Corporate Secretary, PT Pertamina (Persero)

Email: pcc135@pertamina.com, URL: https://www.pertamina.com

Written by: Yuni Arisandy Sinaga, Editor: Fardah Assegaf (c) ANTARA 2022






Topic: Press release summary



Pertamina saves US$402.46 million amid rising global oil prices

State-owned oil and gas company PT Pertamina succeeded in saving operational costs of around Rp6 trillion (US$402.46 million) until July 2022 through several efficiency programs amid rising world oil prices that increased fuel production costs.

PT Pertamina head office building (ANTARA/HO-PT Pertamina)

She explained that energy companies around the world are facing difficult situations as a result of disruption of the global energy supply chain due to the Russia-Ukraine conflict. The global trade mobility leading to post-pandemic recovery was jolted by limited supply that led to an energy crisis.

The president director noted that the Indonesian government’s policy of maintaining the people’s purchasing power through fuel subsidies was the proper measure to accelerate economic recovery.

According to Widyawati, the accuracy of the policy is reflected in the fuel consumption increase for community mobility and business activities.

Pertamina President Director Nicke Widyawati stated that such a success could not be separated from strategic cost-saving measures taken by the company group since the start of this year.

She explained that energy companies around the world are facing difficult situations as a result of disruption of the global energy supply chain due to the Russia-Ukraine conflict. The global trade mobility leading to post-pandemic recovery was jolted by limited supply that led to an energy crisis.

The president director noted that the Indonesian government’s policy of maintaining the people’s purchasing power through fuel subsidies was the proper measure to accelerate economic recovery.

According to Widyawati, the accuracy of the policy is reflected in the fuel consumption increase for community mobility and business activities.

On the other hand, she also pointed out that the increase in fuel consumption had caused an increase in the burden of government subsidies.

“We understand the heavy burden of the government’s fuel subsidy, and for that Pertamina carries out various cost-saving programs in order to help reduce the burden,” she stated.

She remarked that the largest chunk of the company’s cost of fuel production is for the purchase of crude oil, which accounts for 92 percent of the production costs.

Fortunately, investment in upgrading the Pertamina Oil Refinery, which had been conducted in the last four years, had succeeded in increasing the flexibility of crude oil availability.

It means, if so far, the Pertamina refinery has only been able to process certain crude oil that is expensive, but starting last year, it has been able to process crude oil, with a higher sulfur content, which is cheaper and can be gained from many sources,” Widyawati stated.

This is Pertamina’s strategic move that has succeeded in significantly reducing fuel production costs, she affirmed.

In addition, the company’s energy efficiency efforts in all operational areas — from upstream to downstream — had caused significant cost savings while also contributing to a reduction in carbon emissions.

“The post-restructuring breakthrough, which is also significant to achieve Pertamina Group’s efficiency, is the centralization of the procurement of goods and services, as well as the integration and optimization of all assets from upstream to downstream,” she stated.

Apart from saving costs, the Pertamina Group has also succeeded in increasing its revenue through the export of high value-added products, such as HVO (palm-based D100) and Low Sulfur Fuel Oil.

By upgrading its refineries, Pertamina has currently been able to produce more low-carbon products whose demand had continued to increase, thereby capturing a very prospective opportunity in the midst of global demand for such a product.

“For Pertamina, cost savings are not just about cutting costs but also changing operating models and improving business processes, so that all company programs can be carried out and all targets are achieved, but at a lower cost,” Widyawati stated.

“Pertamina will continue to make various efforts to save costs, which at the same time can reduce carbon emissions, thereby supporting the company’s and national energy transition efforts,” she said.

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: Yuni Arisandy Sinaga, Editor: Rahmad Nasution (c) ANTARA 2022






Topic: Press release summary

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