2023 Performance: Pertamina’s Operations Grow Across All Business Lines Pertamina Successfully Fulfills Government Assignments

Jakarta, June 11, 2024 - Following the organizational restructuring and the formation of Holding and Sub-holding entities, PT Pertamina (Persero)'s performance throughout 2023 has continued to improve. Global challenges, especially the decline in world oil prices and currency depreciation, have been successfully navigated by Pertamina through more efficient operational management and financial optimization.

"Since the organizational restructuring, the operational performance across all business lines, both holding and subholding, has become increasingly solid and reliable. Along with operational growth, financial achievements have also increased due to efficiency, cost optimization, liability management, and the commitment to resolving government receivables to Pertamina," said the President Director of Pertamina, Nicke Widyawati, after the Annual General Meeting of Shareholders (GMS) for the 2023 Fiscal Year, at the Ministry of State-Owned Enterprises, Jakarta, on Monday, June 10, 2024.

Through the Upstream Sub-holding, oil and gas production grew by 8% from 967 thousand barrels of oil equivalent per day (MBOEPD) in 2022 to 1,044 MBOEPD in 2023. This production was allocated for national energy needs, with 24% of domestic blocks managed by Pertamina contributing 69% to the national oil supply and 34% to the gas supply. In 2023, Pertamina acquired six blocks, including Masela Block, Bunga Block, and Peri Mahakam Block.

From the Refining and Petrochemical Sub-holding, refinery production increased by 2% from 333 million barrels (BBL) in 2022 to 341 million BBL in 2023. The Balikpapan Refinery Development Master Plan (RDMP) program reached 84% completion by the end of December 2023, alongside other successes such as the environmentally friendly energy products innovation like sustainable aviation fuel (SAF), BioSolar B35, and Pertamax Green.

In the marketing and trading business, through the Commercial & Trading Subholding, fuel and non-fuel products sales increased from 98 million kiloliters (KL) in 2022 to 100 million KL in 2023. Additionally, Pertamina Patra Niaga began distributing environmentally friendly fuels Pertamax Green 95 and BioSolar 35. Throughout 2023, Pertamina continued the BBM 1 Harga (1 Fuel price) program, One Village One Outlet (OVOO), and Pertashop across Indonesia, covering 98% of the regions by the end of 2023.

"As a consumer-facing business line, Pertamina continues to optimize integrated digitalization, from distribution to services, significantly enhancing efficiency in this sector," Nicke explained.

The Gas Sub-holding also increased gas sales from 327 Thousand billion British thermal units (BBTU) in 2022 to 337 thousand BBTU in 2023. This rise was driven by growing demand from industrial, commercial, and household. Meanwhile, the gas network (jargas) expanded by 55 thousand connections in 2023, totaling 820 thousand household connections (SRT). Gas transmission increased by about 8% from 493 billion SCF in 2022 to 532 billion SCF in 2023.

The Integrated Marine Logistics Sub-holding (SH IML) also recorded positive performance throughout 2023. Pertamina’s cargo transportation increased by 3% from 157 million KL in 2022 to 161 million KL in 2023. SH IML currently operates 784 tankers and support vessels domestically and 50 international routes. Most of Pertamina's ships now utilized EcoShip designs, reducing emissions and fuel consumption by up to 8%.

In the Pertamina New & Renewable Energy (PNRE) sub-holding, electricity production from new and renewable energy, including geothermal, increased by 17% from 4,658 gigawatt hours (GWh) in 2022 to 5,451 GWh in 2023. SH PNRE also commercialized several operations, including IPP Jawa 1 Unit 2, solar power plants in Rokan, and Refinery Units II, III, IV, and VI.

"Most operational indicators across all subholdings improved in 2023 compared to 2022. The operational growth of the Pertamina Group was driven by increasing consumer demand, especially in the energy transition sector, reflecting Pertamina's vision to promote energy transition while maintaining national energy security in the oil and gas sector," Nicke stated.

Nicke added that in 2023, one of the keys to digitalization utilization at Pertamina was implemented through the Pertamina Integrated Enterprise Data and Command Center (PIEDCC), a digital transformation to monitor and control all Pertamina business processes, including distribution processes and energy supply availability.

Pertamina Successfully Fulfills Energy Distribution Assignments

PT Pertamina (Persero) has successfully carried out an assignment from the government to distribute energy to the public. It was ratified at the Annual General Meeting of Shareholders (GMS) for the 2023 Fiscal Year at the Ministry of State-Owned Enterprises, Jakarta, on Monday, June 10, 2024.

Nicke emphasized that Pertamina's mandate as a state-owned energy company is to maintain national energy security through energy management based on availability, accessibility, affordability, acceptability, and sustainability principles.

"Pertamina has several assignments from the government to ensure energy availability, affordability, and equity. It is the focus of Pertamina's business operations, integrated from upstream oil and gas to product distribution to fulfill the needs of industry, commerce, households, and the public," Nicke explained.

One of Pertamina's roles in this task is to provide and distribute the initial package of 3 kg LPG for fishing boats and water pump machines for fishers and farmers and support infrastructure development such as household gas networks, including those used for the core government area of the Nusantara Capital City (IKN).

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, added that Pertamina continues to synergize with all stakeholders to carry out these assignments. Pertamina's success in fulfilling these tasks is undoubtedly supported by the government, ensuring that energy distribution runs smoothly, safely, and appropriately.

"We appreciate the role of all government entities, authorities, and village apparatuses and communities that have supported energy distribution, ensuring these assignments are well-executed, and energy distribution targets are met," Fadjar explained.

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.