Pertamina Used Domestic Component Level, up to IDR 374 Trillion in 2023

Jakarta, June 12, 2024 - Throughout 2023, Pertamina Group successfully contributed to the Domestic Component Level (TKDN) realization, achieving 47% of the total national TKDN of State-Owned Enterprises (SOEs), or around IDR 374 trillion. Pertamina carried out the mandate of utilizing TKDN to the maximum, with the largest realization coming from the procurement of hydro (oil and gas and others). Additionally, infrastructure development and procurement of goods and services accounted for 73.2% of the Pertamina Group's contracts.

"The Domestic products use shows Pertamina's commitment to contribute to various industries domestically and drive the Indonesian economy sustainably. It also follows the President's Instruction. We also believe that domestic products have high quality and competitiveness," explained Vice President of Corporate Communication Pertamina, Fadjar Djoko Santoso.

With this TKDN achievement, in March 2024, Pertamina received appreciation for the Domestic Product Utilization in 2024 for the State-Owned Enterprises Category from the Ministry of Industry (Kemenperin) of the Republic of Indonesia. Pertamina Group's TKDN amounted to IDR 374 trillion, or 47% of the total TKDN achievement of BUMN in 2023, which was around IDR 800 trillion.

"We are grateful for the appreciation from the Indonesian Government. It motivates Pertamina to continue improving its TKDN, thus further supporting domestic industries and positively impacting the national economy," Fadjar added.

Based on studies by the Pertamina Energy Institut and Universitas Indonesia, Pertamina's TKDN achievement also creates a multiplier effect, providing employment for 4.1 million people and increasing the Gross Domestic Product (GDP) by IDR 702 trillion, or equivalent to 3.4% of the gross value added from all sectors of the economy in a region (GDP ADHB). Economically, it potentially generates national revenue of up to IDR 1.251 trillion.

Pertamina, a national energy company, products contribute to the domestic energy supply. Pertamina's national oil production reached 69%, while natural gas reached 34%, all allocated to support Indonesia's energy resilience. In 2023, Pertamina also achieved 100% self-sufficiency in producing diesel and aviation fuel.

"Efforts to increase oil and gas production are continually made through increasing production from existing blocks and Pertamina's acquisition and expansion into overseas blocks. Pertamina also strives to improve refinery and petrochemical products by implementing a refinery development master plan (RDMP) program to enhance the quality and types of refinery products," Fadjar added.

Pertamina also encourages the public to use Pertamina products as domestic products. As for retail products, Pertamina's energy distribution access to the public has reached 98% of Indonesia's territory with programs like BBM 1 Harga, One Village One Outlet (OVOO), and Pertashop.

"Playing a dual role, as a user of domestic components and an energy provider for the public, Pertamina continuously strives to improve the quality of its products to become the primary choice for the people. We hope that the public uses quality products from domestic sources to boost the national economy and achieve domestic self-reliance," he added.

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.**