With its vision to become a world-class energy company, Pertamina continues to contribute to building resilience, independence and national energy sovereignty. It has allocated US$90 billion in investment to increase upstream oil and gas production and refinery capacity and capabilities as well as for other oil and gas infrastructure development until 2026.

In executing these investments, Pertamina emphasizes the importance of increasing the local content rate (TKDN) to support the development of the national industry. In the past three years the TKDN in Pertamina's operations has continued to increase.

"According to the BPKP [Development Finance Comptroller] audit results in 2018, Pertamina's TKDN reached 38.17 percent in 2018 and rose to 43.16 percent in 2019. Meanwhile, according to the prognosis for the first quarter of 2020, Pertamina's TKDN reached 52.20 percent," said Pertamina president director Nicke Widyawati.

Pertamina, added Nicke, was now more focused on utilizing domestic natural resources to further encourage national economic progress amid the challenges of the COVID-19 pandemic. Pertamina has sufficient competence to manage domestic resources – from upstream to downstream – so that it will give large multiplier effects.

"Utilizing domestic resources has created significant employment opportunities in various sectors. It is recorded that as many as 1.2 million workers have been employed in the development of B30 and this number will increase with the development of green energy refined from domestic vegetable oil.

"Pertamina's refinery megaproject, which has an average TKDN of above 30 percent, employs 170,000 workers and triggers multiplier effects for around 3 million workers," said Nicke.

New Clean Pertamina

At the same time, as a state-owned company, Pertamina has affirmed its strong commitment to building a New Clean Pertamina – the new Pertamina, which upholds integrity.

This commitment is clearly recorded in the New Clean Pertamina Charter signed by all members of Pertamina's board of directors and its commissioners, in line with the implementation of ISO 37001: 2016 concerning the antibribery management system in the company.

New Pertamina's values drive the spirit to work professionally, avoid conflicts of interests, shun bribery and uphold trust and integrity, guided by the principles of good  governance.

Pertamina has also collaborated with law enforcement institutions – the National Police, the Corruption Eradication Commission (KPK) and the Attorney General's Office – to ensure all business management processes follow the law and remain free from bribery and gratification. This is Pertamina's commitment to ensure Indonesia is free from collusion, corruption and nepotism (KKN).

Pertamina continues to provide energy throughout the country, even to the frontier, outermost and remote areas (3T) to ensure energy is distributed justly and fairly.

By 2019, Pertamina had built 161 One Price Fuel stations and aims to set up 83 more stations by the end of 2020. The One Price Fuel program, which aims to provide affordable fuel and reduce distribution costs, has boosted productivity of communities in 3T areas.

At the same time, Pertamina is ready to operate the already-built 500 Pertashop units in 23 provinces. The number is expected to reach 4,308 units in 2,376 sub-districts throughout Indonesia by the end of the year.

"Pertamina will continue to improve services for the benefit of village communities," said Nicke.

In the context of energy volume, Pertamina is completing the Refinery Development Master Plan (RDMP) and Grassroot Refinery (GRR) megaprojects to increase refinery capacity from 1 million barrels to 1.8 million barrels in the hopes that all domestic fuel needs will be supplied by domestic refineries, without dependence on imports.

The development of energy distribution infrastructure has also been continuously improved, from fuel terminals (TBBM) to shipping, distribution pipes, LPG depots and gas stations as the country's energy storefront.

Pertamina continues to make tangible contributions to the state’s revenue, especially to strengthen the state budget, which serves as a driver of national development. With a net profit of Rp 35.8 trillion ($2.53 billion), Pertamina has contributed Rp 181.5 trillion to the state.

The contributions comprise 2019’s taxes and dividends worth Rp136.6 trillion (an increase of 13 percent from 2018), contributions from non-taxes state revenue (PNBP) from upstream oil and gas activities and the geothermal sector worth Rp 43.7 trillion and signature bonuses amounting to Rp 1.2 trillion, in in line with the revenue from the new working areas operated by Pertamina’s upstream oil and gas subsidiary.

“In addition, Pertamina has also managed to save Rp 109 trillion of the state’s foreign exchange reserves by trimming down imports of crude oil by 35 percent and imports of product by 11 percent,” Nicke explained.

In response to the challenges brought about by the COVID-19 pandemic, Pertamina, through its corporate social responsibility (CSR) program and Small and Medium Enterprises Partnership Program (SMEPP) has distributed various aid to many areas across Indonesia, from masks, hand sanitizer, protective health gear (APD), portable wash basins and multi-vitamins to sembako (staple foods) and other foodstuffs. As a whole, Pertamina had distributed Rp 869 billion in funds to help people cope with the pandemic as of Aug. 7.

The COVID-19 pandemic has prompted Pertamina to speed up innovation in the area of energy and to decide to develop new and renewable energy to support Indonesia’s goal of becoming a healthy, clean and environmentally friendly country.

Pertamina produces 1,000 barrels of green diesel (D-100) per day at the Dumai Refinery pilot project, with Citane 78, which is higher compared to oil and gas production globally. Innovations in green energy continue to be further developed, with the Cilacap Biorefinery and Plaju Biorefinery targeting to produce 6,000 barrels per day and 20,000 barrels per day, respectively, with using 100 percent bio oil as raw material.

The synergy between Pertamina and the Bandung Institute of Technology (ITB) has led to the successful development of the innovative red and white catalyst used as the primary material for green energy processing. Apart from ITB, Pertamina has also collaborated with SOEs to build the first red and white catalyst plant in Indonesia.

Under its innovation program, Pertamina has invested $2.5 billion to build a dimethyl ether (DME) plant to meet the domestic need for LPG and thus reduce reliance on imports.

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