Integrating Core Competencies in Building Social Innovation Is the Key to Pertamina's Upstream Subholding to Achieve Proper

Jakarta, February 23, 2022 – Pertamina's Upstream Subholding continues to make impressive achievements. This time from CSR activities carried out throughout 2021 by winning 9 Gold Proper with 24 Green Proper, 5 Subroto Award Awards, 9 International Awards, 22 Proklim Predicate Villages accumulatively from KLHK, and dozens of potential Proklim villages.

“Implementing core competencies in social innovation programs is the key for us in carrying out social and environmental programs. CSR activities, especially Community Involvement & Development (CID) in the Upstream Subholding environment, are part of the company's commitment to implement environmental, social, and governance (ESG) aspects, which also helps to support Sustainable Development Goals (SDGs) achievement," explained Arya Dwi Paramita, Corporate Secretary of PT Pertamina Hulu Energi as Sub holding Upstream (22/02).

Furthermore, Arya added, referring to the Sustainability Policy of PT Pertamina (Persero) implemented in each sub-holding, environmental performance management in the Upstream Subholding is also carried out to support the achievement of SDGs in the environmental development pillar.

The social performance also continues to be improved to support the social development pillar of the SDGs, particularly in Goals 1, 4, 5, and Goal 8 in the economic development pillar. Lastly, in the aspect of governance, there is one sustainable goal in the pillars of legal development and governance.

There are 9 Gold Proper 2021 social innovation programs for Pertamina's Upstream Sub holding that won the Gold PROPER Award. Nine of them are the PHE Jambi Merang's Desa Cinta Bumi Tanggap Api Program, Pelita (Environmental Education for Children) of PEP Subang Field, Advanced Farmers 4.0 of Pertamina Hulu Mahakam (PHM) BSP, Nelayanku Hebat of PHM SPU, 'Tante Siska' (Integrated Farmer Social Innovation System Setaria Group) of PEP Sanga Sanga Field, 'Kubedistik' (Batik Disability Joint Business Group) of PEP Tarakan Field, Kampung Kopi Luwak Prangat Baru Village of PHKT DOBU, Agriculture Agroecology of JOB Tomori, and 'Salin Swara' (Mobile Self-Help Garbage) of PT Badak NGL.

"With the implemented social innovations diversity, it is hoped to provide solutions for local social problems. Thus, they can produce measurable positive impacts and provide benefits to the community and the environment," added Arya.

Sub holding Upstream Pertamina runs a program based on problems mapping and needs of multidimensional social, economic, and environmental aspects by identifying activities that involve multi-stakeholder collaboration.

"The most important thing is the benefits generated from the program are greater so that it is proven to be effective in solving social problems," explained Arya.

Pertamina's Upstream Sub holding has calculated the monetization of the CID program implementation's beneficial impact through Social Return On Investment (SROI).

“When we talk about community economic development activities that produce products, then we should not stop at just the initial innovation. But we must continue to determine who the buyer is. So it is hoped that all activities will continue to be sustainable. And the products produced by the community can be sold well, absorbed by the market, and beneficial for all parties," concluded Arya.**