Remarkable! Pertamina Becomes the Largest State-Owned Enterprise Contributor to TKDN in 2023

Bali, March 7, 2024 - Pertamina's strong commitment to maximizing domestic goods and services utilization is proven by its success in increasing the Domestic Component Level (TKDN) utilization across all its business lines. In 2023, the Pertamina Group became the largest contributor to TKDN among state-owned enterprises (SOE), contributing up to 50% of the total TKDN for SOEs.

The 2023 TKDN for SOEs reached around IDR 800 trillion, while Pertamina Group's TKDN reached IDR 374 trillion. For this remarkable achievement, Pertamina was awarded the Domestic Product Utilization Award 2024 for the State-Owned Enterprises category by the Ministry of Industry of the Republic of Indonesia (Kemenperin).

The award was presented directly by the Minister of Industry, Agus Gumiwang Kartasasmita, and received by the President Director of Pertamina, Nicke Widyawati, at the Domestic Product Utilization event at The Meru Sanur, Bali, on Thursday (07/03).

President Director of Pertamina, Nicke Widyawati, stated that this TKDN achievement is tangible evidence of Pertamina's commitment to optimizing domestic goods and services utilization, which is expected to boost the national economy.

"Pertamina's contribution to TKDN is very significant. This is Pertamina's commitment not only to achieve targets, but we want to continuously increase the involvement of domestic industry players to fulfill the needs of goods and services, particularly for the energy industry," said Nicke.

According to Nicke, Pertamina's commitment to TKDN is also manifested by establishing special functions related to TKDN, from planning and monitoring to verification. Pertamina has executed around 6,500 transactions with a total contract value of IDR 374 trillion.

Coordinating Minister for Maritime Affairs and Investment (Marves), Luhut Binsar Pandjaitan, who also attended the same event, expressed appreciation to all parties who have supported and implemented domestic product utilization.

Luhut also praised Pertamina for its significant contribution to the domestic product utilization implementation. "I think Pertamina is now becoming more established, more profitable, and more efficient; it (Pertamina) must dare to compete with others," said Luhut.

Luhut also urged all relevant parties to continue implementing domestic product utilization related to their business activities. "Let us continue the success story. I hope we all must be proud to be Indonesians," he explained.

Minister of Industry, Agus Gumiwang Kartasasmita, added that in the Business Matching 2024 implementation, the total commitment to domestic products utilization amounted to IDR 1,428.25 trillion. With a breakdown of total commitments from Ministries, Institutions, and Local Governments of IDR 585.69 trillion and total commitments from SOEs of IDR 842.56 trillion. He said that this figure is higher than last year, which was IDR 1,157 trillion.

To support domestic product purchases in the goods and services procurement, he continued, the government continues to innovate and accelerate measures. "Through the Ministry of Industry, the government has digitized TKDN certification, which ensures fast, accurate, and accountable certification processes," Agus explained.

Furthermore, Agus stated that every IDR 400 trillion expenditure on goods and services originating from the Domestic Product Enhancement Program (P3DN) will strengthen Indonesia's economic growth by 1.8 percent. "We believe all of this can bring multiplier effects and value-added and will accelerate the deepening, spreading, and equalizing programs of the national industrial sector," said Agus Gumiwang Kartasasmita.

Following the government's efforts to increase domestic product utilization, Pertamina will continue its commitment to increase the TKDN value across all its business lines as part of Pertamina's efforts to promote and enhance the national economic movement.

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.**