House Commission VI Appreciates Positive Performance of Pertamina Throughout 2023

Jakarta, June 13, 2024 - The Indonesian House of Representatives Commission VI appreciates Pertamina’s positive performance throughout 2023.

"Commission VI appreciates the operational and financial performance of PT Pertamina (Persero) in 2023, which managed to grow amid fluctuating geopolitical and global economic conditions, and encourages PT Pertamina (Persero) to improve performance in the future," said Aria Bima, Deputy Chairman of Commission VI, while leading a Hearing Meeting with Pertamina on Wednesday, June 12, 2024.

Aria Bima added that Commission VI also urges PT Pertamina (Persero) and all its subsidiaries to ensure the availability, distribution, and affordability of fuel and gas, and enhance monitoring and evaluate the subsidized fuel and gas distribution system, including the optimization of digitalization to support national energy security.

Deputy Director of PT Pertamina (Persero), Wiko Migantoro, stated that Pertamina continues to be at the forefront of maintaining national energy security.

"Energy security is measured by four benchmarks: availability, accessibility, affordability, and acceptability," said Wiko during the Hearing Meeting with Commission VI on Wednesday, June 12, 2024.

Regarding availability, Wiko noted that Pertamina has increased its contribution to the upstream oil sector, achieving 69% of national oil lifting and 34% of national gas lifting.

"In the upstream sector, Pertamina’s 2023 oil and gas production also grew 8% to 1,044 MBOEPD compared to 967 MBOEPD in 2022. While, in the downstream sector, fuel production meets 70% of national fuel needs," Wiko added.

Pertamina also continues its commitment to accessibility and affordability. Accessibility ensures the connection of energy sources with consumers, while affordability ensures the energy prices delivered by Pertamina to the public are reachable.

According to Wiko, the distribution of Pertamina energy reach is now 98%, supported by the BBM 1 Harga, Pertashop, and One Village One Outlet (OVOO) programs. Additionally, Pertamina has built 820,000 household gas connections.

"We also have a comprehensive supply chain with operational ships, as Pertamina operates 784 tankers and support vessels," said Wiko.

Regarding acceptability, defined as sustainable energy to achieve NZE 2060, Pertamina has produced geothermal energy amounting to 1,877 MW, equivalent to 78% of national capacity. Pertamina has also built Solar Power Plants (PLTS) with a capacity of 53 MWp.

Simultaneously, Pertamina has innovated by producing biofuels for each biodiesel variant, B35, HVO, Bioethanol E5, and SAF2.4.

"Regarding decarbonization aspects, scope 1 and 2, Pertamina successfully reduced emissions by 8.5 million tons of COe or 34% of operational emissions," Wiko added.

As a result, the ESG risk rating of Pertamina is currently the highest globally in the Integrated Oil and Gas sub-industry, leading with the highest score among 61 global companies, according to ESG Rating Sustainalytics, with a score of 20.7.

For financial performance in 2023, PT Pertamina (Persero) recorded a total profit of approximately IDR 72.7 trillion, a 17% increase compared to the profit in 2022.

"Thank you to Commission VI for your support to ensure we continue to operate and grow, aiming for national energy security," Wiko concluded.

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, added that in 2023, Pertamina's positive growth was supported by the Pertamina Group subsidiaries' performance. The performance is followed by a commitment to implementing five priority pillars in line with the mandate from the Ministry of SOEs, encompassing economic and social value, business innovation, technology utilization, increased investment, and HR empowerment to support corporate performance.

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.**