Pertamina Presents Double Growth Strategy to Fulfill National Energy Needs at CERAWeek Forum

Houston, USA, March 24, 2024 - PT Pertamina (Persero) is implementing a dual growth strategy to sustain national energy needs, which involves strengthening and expanding existing oil and gas business management while concurrently developing low-carbon businesses as drivers of future growth.

This strategy was outlined by the President Director of PT Pertamina (Persero), Nicke Widyawati, during an international energy sector forum at CERAWeek held in Houston, USA, on March 18, 2024.

In front of the CEOs of energy, finance, and technology companies worldwide, as well as government representatives and stakeholders in the energy sector, Nicke revealed that as a State-Owned Enterprise (SOE), Pertamina has a mandate to provide energy. Therefore, Pertamina must implement a dual growth strategy. Firstly, it aims to maintain current energy needs through the legacy business in the oil and gas sector while simultaneously undertaking decarbonization across all internal operations, from upstream to downstream.

Secondly, Pertamina will also focus on developing low-carbon businesses, including Carbon Offset, Carbon Capture Storage/Carbon Capture Utilization and Storage (CCS/CCUS), and natural-based solutions.

"It is crucial to maintain a balance between these two strategies. Until 2032, we will allocate most of our budget to the upstream sector to increase oil and gas production. Why? Because we need to achieve national energy independence to reduce dependence on crude oil imports, fuel products, and LPG. We have also converted oil refineries into Bio Refineries and integrated them with Petrochemical plants," said Nicke.

During this global meeting, Nicke outlined the company's spending allocation to address this double growth strategy. According to her, 62% of Pertamina's investment spending will be directed to the upstream sector, 20% for refinery investments, and approximately 15% for New and Renewable Energy (NRE) development. However, over time, Pertamina will increase its spending allocation for low-carbon business development.

"From this dual growth strategy, we believe the energy transition we are undertaking will proceed without sacrificing anything. We will transition towards sustainable energy without compromising security and energy availability," Nicke added.

At the global forum, Nicke also discussed the main challenges in Indonesia's energy transition, including technology, financing, and human resource development. She emphasized the need to enhance the human resources quality to be ready and relevant to future energy needs. Technology is also crucial, although Pertamina needs to maintain oil and gas production while reducing carbon emissions.

"We have decarbonized Scopes 1 and 2 in our operations, and we have successfully reduced carbon emissions by about 31% in our internal operations, but we still believe that there is room for improvement," she added.

Nicke acknowledged that decarbonization is a top priority, followed by new technologies development to harness domestic resources such as bioenergy. According to her, Indonesia has plant-based energy potential, so technology is needed to convert natural resources into energy. She added that unconventional drilling and carbon capture, utilization, and storage technologies are also essential to address carbon offset challenges.

"We believe that technology and collaboration are key to progress in this regard," concluded Nicke.

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, and Governance (ESG) implementation across all Pertamina's business lines and operations.**