Becoming the Virtual Pipeline of Energy, These are the Key to Pertamina International Shipping Strengthening National Logistics

Jakarta, September 11, 2024 – Pertamina International Shipping (PIS) has revealed its key strategies for tackling logistics challenges in Indonesia. Effective and efficient logistics, supply chain coordination, and strategies to mitigate external uncertainties are the main factors that make PIS a virtual pipeline for energy transport and delivery across the archipelago.

Yoki Firnandi, the CEO of PIS, discussed these points at the High-Level Forum on Multi-Stakeholder Partnership 2024 in Bali on Tuesday (3/9). “PIS is responsible for most  energy supply chains throughout Indonesia. Each year, we successfully deliver more than 160 billion liters of various types of energy and conduct over 20,000 energy shipments to islands across Indonesia,” Yoki stated.

Yoki emphasized that addressing these challenges began with an efficient and effective logistics system implementation. It is achieved by carefully mapping and closely monitoring the company's logistics performance, allowing for continuous improvement in energy delivery quality.

Secondly, PIS has an internal coordination mechanism that facilitates collaboration between stakeholders and industry players. This meticulous coordination supports PIS in planning, operations, and master plan execution.

The next crucial point is developing strategies to deal with uncertainty. As we know, global trade and economies are not immune to external threats. Natural disasters, uneven infrastructure, and geopolitical conditions are unpredictable external variables that must be anticipated.

“To achieve these goals, we also focus on training human resources (HR) and leveraging appropriate technologies. Finally, government regulations and support help us optimize and maintain the energy supply chain throughout Indonesia,” Yoki added.

During the forum, a reliable logistics system was identified as one of the most important factors in global trade and the economy. With a vision to become a major player in the global maritime logistics industry, PIS has demonstrated excellent performance in helping to maintain national energy security.

In the forum, the Secretary General of United Nations Trade and Development (UNCTAD), Rebeca Grynspan, opened the session by highlighting the importance of a reliable logistics network in an increasingly interconnected world. Major global events such as the COVID-19 pandemic, geopolitical conflicts, and natural disasters triggered by climate change pose challenges that must be addressed by global leaders and relevant industries.

A study by UNCTAD found that developing island nations suffer the most from these challenges, with logistics costs on average 32-35% higher than the global median. Increased maritime logistics costs lead to inflation in developing countries, which is five times higher in these regions.

“Our research shows that maritime logistics costs result in inflation five times higher in developing countries. Indonesia is well aware of this. With over 18,000 islands, many residents feel the impact of high daily commodity prices. This reality underscores the urgent need to enhance resilience, inclusivity, and sustainability of our global supply chains,” Grynspan emphasized during the forum's opening.

The Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, said that as a state-owned enterprise, Pertamina will continue to drive national economic growth by ensuring sufficient energy across Indonesia.

“Affordable national energy security throughout Indonesia is the main driver of Indonesia’s economic growth,” Fadjar stated.

The international forum, organized by the National Development Planning Agency (Bappenas), was attended by PIS, UNCTAD, and several experts and practitioners from international organizations and companies, including World Bank Senior Economist Csilla Lakatos, the Deputy Minister of International Relations and Cooperation of South Africa, Alvin Botes, the Director of Indonesia Islamic Development Bank, Amer Bukvic, the Assistant Chief Executive/Chief Risk Officer of Singapore’s Maritime and Port Authority, Tan Hoe Soon, and Cambodia’s State Secretary of the Ministry of Planning, Poch Bunnak. They all contributed valuable insights to discussions on logistics and trade in developing countries.

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.**