Digitalization & Technology Research: The Key to Pertamina's Positive Performance in 2023

Bali, June 23, 2024 - The positive performance recorded by PT Pertamina (Persero) in the 2023 fiscal year was supported by digital transformation and technological research innovations. Through these breakthroughs, Pertamina achieved positive results across almost all business lines.

Pertamina's exceptional performance has garnered global recognition. Most recently, Pertamina was ranked the third-largest company in Southeast Asia according to the Fortune 500 Southeast Asia list.

At the Editors-in-Chief Gathering event in 2024, the President Director of PT Pertamina (Persero), Nicke Widyawati, stated that digitalization and technology research were the main drivers behind Pertamina's improved performance.

With digitalization, Pertamina can manage its business operations from upstream to downstream in an integrated manner.

"We have started using AI to process and analyze data more quickly, enabling accurate decision-making," Nicke said.

Additionally, Pertamina continues to develop research and technology to enhance high-value products. Pertamina controls 24% of the upstream sector, contributing 69% to oil production and 34% to gas production. Manage thousands of wells through digitalization that is connected to downstream operations.

In 2023, Pertamina's Upstream Subholding has increased oil and gas production by 8 percent. Furthermore, Pertamina continues to increase new oil and gas reserves from existing and new oil and gas blocks.

"This is remarkable. To increase oil and gas production, Pertamina drilled approximately 800 new wells. Consequently, 62 percent of Pertamina's investments are in upstream activities," Nicke added.

The refining sector also showed excellent performance. Pertamina's Refining & Petrochemical Subholding maintained refinery productivity with a capacity of 1.025 million barrels per day. This performance is extraordinary, as refinery operations ran throughout 2023 without unplanned shutdowns.

"This is not something that happened suddenly but is the result of a five-year process during which Pertamina revamped the refineries," Nicke noted.

Pertamina has also undertaken nine projects to enhance productivity, improve energy efficiency, and increase refinery capacity.

In the downstream sector, Nicke added, through digitalization, Pertamina's Commercial & Trading Subholding successfully controlled quotas for subsidized fuel and LPG while increasing non-subsidized fuel sales by 2 percent, predominantly in the industrial sector.

"This means it effectively promotes industrial growth," Nicke emphasized.

In the transportation business, Pertamina's Integrated Marine & Logistics Subholding operates 760 ships and continues to expand its international business. Currently, through Pertamina International Shipping (PIS), Pertamina has 50 international shipping routes. In 2023, the volume transported reached 161 million KL, up 3 percent from 2022.

The Gas Subholding's business development also showed excellent results. In 2023, gas sales volume reached 337 thousand BBTU, an increase of 3 percent from the previous 327 thousand BBTU.

Nicke added that gas is Pertamina's mainstay for energy transition, and gas infrastructure development will accelerate energy transition in Indonesia.

"The key to energy transition lies in gas as an intermediary between fuel and renewable energy," Nicke emphasized.

Through the Power & New Renewable Energy (NRE) Subholding, Pertamina also increased clean energy production by 17 percent, reaching 5,452 GWh from the previous 4,659 GWh.

"Last year, PNRE completed a gas project integrated with the largest regasification in Southeast Asia, PLTGU Jawa 1, with two units, each with a capacity of 880 MW," said Nicke.

In addition to positive performance, Pertamina also conducts its business processes from upstream to downstream in a more environmentally friendly manner. Pertamina successfully reduced carbon emissions by 34 percent, surpassing the government's target of 31.89 percent. As a result, Pertamina's ESG rating ranked first globally in the Integrated Oil and Gas sub-industry.

Chairman of the Editors' Forum, Arifin Asydhad, praised Pertamina's performance under Nicke Widyawati's leadership.

"I appreciate what Ms. Nicke has conveyed regarding Pertamina's outstanding performance," said Arifin.

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.**