Pertamina's Performance in 2022, Operational Excellence Accompanied by 60% Domestic Component Level Utilization

Jakarta, June 7, 2023 - In line with the financial performance growth of PT Pertamina (Persero), which achieved its highest in history, the company's operations in various business lines have also grown. Pertamina has recorded an increase in the Domestic Component Level (TKDN) to 60%, surpassing the company's target, with a TKDN value of USD 1.5 billion.

President Director of PT Pertamina (Persero), Nicke Widyawati, stated, "I appreciate the domestic content level (TKDN) utilization in Pertamina's business processes. TKDN aims to enhance the domestic industry, and its multiplier effect is significant," she said during Pertamina's Media Briefing in Jakarta on Tuesday (6/6).

In the upstream sector, oil and gas lifting increased by 15% to 837 thousand barrels of oil equivalent per day (mboepd), compared to last year's lifting of 728 mboepd. The growth in upstream performance was supported by investment activities and technology utilization, resulting in a success ratio in upstream drilling activities and triggering production optimization. Oil and gas production increased by 8% to 967 mboepd this year.

Operational excellence is also evident in the downstream sector. The availability and accessibility of fuel products to the public have increased, with a national coverage of 98% through various programs such as the One Price Fuel Program, Pertashop, and One Village One Outlet (OVOO).

Nicke added that energy distribution through the One Price Fuel Program includes fuel distribution institutions establishement in remote, leading, and outermost areas (3T).

By the end of 2022, the program, which started in 2017 and aims to support the Government in realizing energy justice, has reached 413 distribution institution points. In 2022, there was an addition of 92 One Price Fuel distribution points in 3T areas.

Fuel distribution, which prioritizes availability and affordability, is also developed by Pertamina through OVOO. The development of environmentally friendly fuel outlets known as Pertamina Shop (Pertashop) continues to expand to reach rural areas far from gas stations. By the end of 2022, there were 6,152 Pertashop points.

In addition to environmentally friendly fuel, through the OVOO program, Pertamina establishes LPG agents to distribute gas energy cylinders. By the end of 2022, the operational outlets reached 64,277 points. This program is expected to facilitate the public in obtaining gas cylinders, especially subsidized LPG.

Furthermore, to promote the use of natural gas in households, Pertamina also expands household gas connections, reaching 384,000 in 2022.

To drive economic and social growth in remote regions, Pertamina also increases local content utilization to a proportion of 60%, equivalent to USD 1.5 billion. This local content utilization involves more than 5,600 local/national manufacturers and approximately 82,000 local and national workers.

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