Supporting the Government in Managing Inflation, Pertamina Secures Fuel and LPG Supply

Jakarta, September 4, 2023 - PT Pertamina (Persero) is committed to supporting the government to maintain inflation by ensuring fuel and liquefied petroleum gas (LPG) supply in Indonesia. To achieve this, Pertamina has implemented a strategy focusing on safeguarding the upstream and downstream oil and gas supplies, maintaining infrastructure reliability, and ensuring stock supply for crude oil and oil and gas products. 

Nicke Widyawati, President Director of Pertamina, explained that through these efforts, Pertamina can maintain its product prices’ stability, especially fuel and LPG, which are downstream oil and gas products that impact inflation. "Pertamina will continue to monitor fuel and LPG supply, especially subsidies, to ensure their safety and accuracy. One of the ways we do this is by maintaining supply because any reduction in supply can lead to price increases in the market," Nicke said during the 2023 Inflation Control Coordination Meeting, held virtually by the Ministry of Home Affairs on Monday, September 4, 2023.

Nicke added that Pertamina's efforts to maintain supply are not limited to downstream oil and gas products but are integrated from upstream to downstream. Upstream production from Pertamina's fields must be maintained to ensure a sufficient supply of crude oil for refineries, allowing them to produce BBM and its derivatives according to the community’s needs.

To ensure this supply and stock, Nicke explained that Pertamina utilizes digital technology that provides real-time data and information on stocks from all energy distribution infrastructure. With this technology, Pertamina can ensure the adequacy of its stocks in various regions in Indonesia. "We have the Pertamina Integrated Enterprise Data and Command Center to monitor all stocks, from refineries to those on ships and at petrol stations. We ensure that shortages do not occur," Nicke emphasized.

Furthermore, Nicke stated that Pertamina has also digitized petrol stations and registered the Rightful Subsidy recipients to control and monitor subsidized fuel distribution. Following the government regulations to ensure targeted subsidies, Pertamina is also registering eligible individuals for the 3 Kg LPG subsidy. 

Nicke expressed Pertamina's appreciation for the government's support in ensuring targeted distribution, which ultimately has positive implications. "The government has issued regulations to ensure LPG distribution, and we will continue to ensure its smooth implementation in the field," she stated.

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.**