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Performance in 2023: Pertamina's operations grow across all business lines
Following organizational restructuring involving the formation of holding and subholding companies, the performance of PT Pertamina (Persero) continued to improve throughout 2023.
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Pertamina president director Nicke Widyawati delivers a presentation at the Pertamina Annual General Meeting (RUPS) at the State-Owned Enterprises (SOEs) Ministry building in Jakarta on Monday.
Pertamina successfully carries out government assignment
Following organizational restructuring involving the formation of holding and subholding companies, the performance of PT Pertamina (Persero) continued to improve throughout 2023. The global challenges, particularly the decline in world oil prices and the weakening exchange rate, were successfully navigated by Pertamina through more efficient operational management and financial management optimization.
“Since the organizational restructuring, the operational performance of all business lines, both holding and subholding has become increasingly solid and reliable. Alongside this, operational growth [and] financial achievements have also improved due to efficiency, cost optimization, liability management and commitment to resolving government receivables owed to Pertamina,” said Pertamina president director Nicke Widyawati after the company’s Annual General Meeting of Stakeholders (RUPST) for the 2023 fiscal year, held at the State-Owned Enterprises (SOEs) Ministry in Jakarta on Monday.
Through the Upstream Subholding, oil and gas (migas) production grew by 8 percent from 2022's 967 thousand barrels of oil equivalent per day (MBOEPD) to 1,044 MBOEPD in 2023. The production is allocated for national energy needs, with 24 percent of domestic blocks managed by Pertamina contributing 69 percent and 34 percent to the national oil and gas supply, respectively. In 2023, Pertamina also completed six block acquisitions, including the Masela Block, Bunga Block and Mahakam Peri Block.
Meanwhile, the Refining and Petrochemical Subholding increased refinery production by 2 percent from 333 million barrels (BBL) in 2022 to 341 million BBL in 2023. The Balikpapan Refinery Development Master Plan (RDMP) program reached 84 percent completion by the end of December 2023, along with other successes such as environmentally friendly energy product innovations like sustainable aviation fuel (SAF), BioSolar B35 and Pertamax Green.
The Commercial & Trading Subholding, dealing in marketing and commerce business, boosted the sales realization of both fuel and non-fuel products from 98 million kiloliters (kl) in 2022 to 100 million kl in 2023. Additionally, Pertamina Patra Niaga has begun distributing environmentally friendly fuels such as Pertamax Green 95 and Biosolar 35. In 2023, Pertamina continued its programs such as Uniform Fuel Price, One Village One Outlet (OVOO) and Pertashop across Indonesia, covering 98 percent of the territory by the end of the year.
“As a consumer-facing business line, Pertamina continues to optimize integrated digitization, from distribution to services, thus this sector's business processes can yield significant efficiency gains for Pertamina,” explained Nicke.
The Gas Subholding also successfully increased gas sales from 327,000 billion British thermal units (BBTU) in 2022 to 337,000 BBTU in 2023. This growth was driven by increased demand from industrial, commercial and household sectors. Meanwhile, the gas network (jargas) saw an addition of 55,000 connections in 2023, accumulating to 820,000 household connections (SRT). Additionally, gas transmission increased by approximately 8 percent from 493 billion standard cubic feet (SCF) in 2022 to 532 billion SCF in 2023.
The Integrated Marine Logistics Subholding (SH IML) also recorded positive performance throughout 2023. Pertamina's cargo transportation increased by 3 percent from the previous year, rising from 157 million kl in 2022 to 161 million kl in 2023. SH IML currently operates 784 tankers and supported vessels domestically, along with 50 international routes. Most of Pertamina's vessels have also adopted EcoShip designs, resulting in emissions reduction and fuel efficiency of up to 8 percent.
At Pertamina New & Renewable Energy Subholding (PNRE), electricity production from new and renewable energy sources, including geothermal, increased by 17 percent from 4,658 gigawatt hours (GWh) in 2022 to 5,451 GWh in 2023. PNRE SH also commercialized several operations, including IPP Jawa 1 Unit 2; a solar power plant in Rokan; and Refinery Units II, III, IV and VI.
“Most operational indicators across all subholdings increased in 2023 compared to 2022. The rise in Pertamina Group's operations was driven by growing consumer demand, particularly in the transition energy sector, where growth was notably high. This reflects Pertamina's commitment to advancing the utilization of transition energy while ensuring national energy resilience in the oil and gas sector," Nicke stated.
Nicke added that in 2023, one of the keys to digitalization at Pertamina was implemented through the Pertamina Integrated Enterprise Data and Command Center (PIEDCC), which monitors and controls all Pertamina business processes so that they can run well, including supply and distribution.
Pertamina successfully executes energy distribution assignment
PT Pertamina (Persero) successfully carried out a special assignment from the government to distribute energy to the public. This was reflected in the approval of the Annual General Meeting of Shareholders (RUPST) for the 2023 fiscal year, held at the SOEs Ministry building in Jakarta on Monday.
Nicke noted that Pertamina's mandate as a state-owned energy company was to maintain national energy resilience through energy management based on the principles of availability, accessibility, affordability, acceptability and sustainability.
"Pertamina has several assignments from the government to ensure energy availability, affordability and equity. This is the focus of Pertamina in conducting its business, which is integrated from upstream oil and gas to product distribution to meet the needs of industries, commercial enterprises, as well as communities and households," Nicke added.
One of Pertamina's roles in this task is to provide and distribute 3 kilogram LPG starter kits for fishing vessels and water pump machines for fishermen and farmers. Additionally, it supports infrastructure development such as household gas networks, including those used for the core area of the Nusantara Capital City (IKN) government center.
Vice president for corporate communications Fadjar Djoko Santoso added that Pertamina continued to synergize with all stakeholders to fulfill this assignment.
The success of Pertamina in carrying out the assignment is undoubtedly inseparable from the government's support, ensuring that energy distribution runs smoothly, safely and according to its intended purpose.
"We appreciate the role of all government entities, officials, as well as village apparatuses and communities that have supported energy distribution, ensuring the success of this assignment and the achievement of energy distribution targets," said Fadjar.
As a leading company in the energy transition field, Pertamina is committed to supporting the Net-Zero Emissions 2060 target by continuously promoting programs that directly impact the achievement of the Sustainable Development Goals (SDGs). All of these efforts align with the implementation of Environmental, Social and Governance (ESG) principles across Pertamina's business lines and operations.
