Pertamina's Performance in 2022: Integrated Digitalization Generates Cost Optimization of up to USD 3.27 Billion

Jakarta, June 7, 2023 – The year 2022 marked a positive milestone for PT Pertamina (Persero). Financial and operational performance has flourished, supported by integrated digitalization activities from upstream to downstream, resulting in cost optimization of up to US$ 3.273 billion during 2021-2022 period.

Nicke Widyawati, the President Director of PT Pertamina (Persero), revealed that Pertamina Group has numerous subsidiaries and affiliates, making digitalization a key role in managing them in an integrated manner. In the 2022 period, with technology utilization, Pertamina's upstream sector could increase oil lifting by 15% and oil production by 8%.

"We have around 65 blocks with 27,000 wells that need to be monitored daily. It would be impossible without integrated digitalization from upstream to downstream," said Nicke during the Pertamina Media Briefing in Jakarta on Tuesday (6/6).

In the refining business line, Pertamina also achieved a 6% increase in intake and a 2% yield valuable improvement. With digitalization, predictive maintenance can be performed to prevent unplanned shutdowns and optimize refinery maintenance.

"We must ensure that the refinery operates according to plan. Through our database and artificial intelligence, we can identify any damage to the refinery," she added.

In the downstream sector, specifically in Pertamina's petrol stations, digitalization has implemented fuel minimum inventory stocks without compromising fuel product availability for the public. It greatly aids in financial management. "As long as we monitor and maintain it properly to avoid scarcity, the money saved in inventory can be reduced. We carefully manage the inventory of each petrol station," she further explained.

Nicke added that digitalization has reduced subsidized fuel and LPG losses and misuse. With data, they can mitigate any irregularities, making it easier to address them.

According to Nicke, digitalization can transform the operating model or way of working, ultimately providing value in the form of cost optimization, including cost efficiency, cost avoidance, and revenue enhancement.

"These three aspects, in the past two years, 2021 and 2022, amounted to USD 3.27 billion. Cost optimization has become the largest contributor to Pertamina's performance improvement in 2022," she stated.

As a leading company in the energy transition, Pertamina is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that impact the Sustainable Development Goals (SDGs) achievement. All these efforts follow the Environmental, Social & Governance (ESG) implementation across Pertamina's business lines and operations.**