Collaborating with the Ministry of Cooperatives and Small and Medium Enterprises, Pertamina Invites Cooperatives to become Pertashop Partners

Jakarta, December 21, 2020 - Pertamina collaborates with the Ministry of Cooperatives and Small and Medium Enterprises (KemenkopUKM) to accelerate the addition of Pertashop outlets in remote areas.

Pertashop is a small-scale Pertamina distributor prepared to serve the needs of consumers of non-subsidized fuel, non-subsidized LPG, lubricants, and other Pertamina retail products that are not or have not been served by other Pertamina distributors. Pertashop provides Pertamax products at the same price as regular petrol stations. Pertashop outlets offer easier access for people to meet their vehicle fuel needs without driving long distances to petrol stations.

KemenkopUKM will also help Pertamina empower cooperatives and MSMEs to distribute oil, gas, and renewable energy. This cooperation is to accelerate the distribution of energy throughout the country by constructing the Pertashop Outlet.

The synergy between Pertamina and KemenkopUKM was stated in the signing of a Memorandum of Understanding by the Minister of Cooperatives and SMEs, Teten Masduki, and the President Director of PT Pertamina (Persero), Nicke Widyawati, in Jakarta, Monday (21/12).

Minister of Cooperatives and Small and Medium Enterprises, Teten Masduki, is optimistic that a synergy like this is one of the best ways to create government presence in the community.

Through this Memorandum of Understanding, Teten Masduki ensures that the Cooperative and MSMEs networks in all Indonesia regions are ready to become strategic partners in managing the Pertashop Outlet.

"Synergy like this must be intensified. On the one hand, energy distribution, which is the Government's task and mandate for Pertamina, can be achieved more quickly and precisely. On the other hand, we will increase people's regional economy. Therefore, the benefits are energy for all while empowering and providing added value to regional apparatus. Thus, it can encourage holistic economic growth," explained Teten.

Teten said that at least 86.6% of cooperatives in the real sector have the opportunity to build partnerships with Pertamina, both for the Pertashop program and future development.

This collaboration also helps the network of cooperative members and MSME players throughout Indonesia to get energy access to support business activities more easily.

"Like fishers in all Indonesia regions who need an energy distribution program, there are around 1,973 fishing cooperative units in Indonesia. Of these, not all of them have easy access to fuel for their boats. It also has the opportunity to be part of the expansion of the Fishers Solar Pack Dealers (SPDN) development partnership program that has been initiated so far. We, KemenkopUKM, will also ensure and monitor all cooperatives assigned as partners managing the Pertashop Outlet must carry out their mandate as well as possible so that the benefits can be felt in the community," said Teten.

Teten hopes that this Memorandum of Understanding will be the first step for Cooperatives and MSMEs' progress as strategic partners in ensuring energy availability in Indonesia.

President Director of Pertamina, Nicke Widyawati, said that Pertamina, as a state-owned company, is responsible for providing fuel and LPG to all corners of the country. Therefore, Pertamina created the One Village One Outlet (OVOO) Program, which is also part of Pertamina's efforts to ensure the availability and accessibility of fuel throughout Indonesia, just like the One Price BBM program.

According to Nicke, Pertamina is targeting to build 40,000 Pertashops by 2024, and starting next year, Pertamina targets to build 10,000 Pertashops per year. Therefore, it is crucial to collaborate with the Ministry of Cooperatives and Small and Medium Enterprises (KemenkopUKM). Previously, cooperation was also carried out with the Ministry of Home Affairs and the Ministry of Disadvantaged Villages and Transmigration.

"With MSMEs being involved in the distribution of Non-Subsidized fuel, it shows that MSMEs have upgraded and can no longer be categorized as poor people who receive subsidies by the Government. It is also to provide education to the village community to use environmentally friendly fuel," said Nicke.

Nicke added that following the SOE Law, Pertamina had the task of looking for profit and fostering MSMEs to become a driver of national economic growth.

"This cooperation is very appropriate, considering that more than 90 percent of the workforce is absorbed in MSMEs and MSMEs contributes more than 60% to national GDP," concluded Nicke.**