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Pertamina local content usage reached Rp 374 trillion in 2023
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An illustration of Pertamina's project using domestic components (TKDN) to advance the national industry and drive the national economy.
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hroughout 2023, Pertamina Group’s realization of local content usage (TKDN) accounted for 47 percent of the total local content usage of state-owned enterprises (SOEs) nationally, amounting to Rp 374 trillion. Pertamina implemented the mandate to use local content to its maximum, with the largest realization coming from hydro procurement (oil and gas, among others). Additionally, infrastructure development and procurement of goods and services accounted for 73.2 percent of Pertamina Group's contracts.
“The use of domestic products shows Pertamina's commitment to supporting various domestic industries and driving Indonesia's economy sustainably. This is also in line with the President’s instructions. We also believe that domestic products are of high quality and competitive,” explained vice president of corporate communication at pertamina, Fadjar Djoko Santoso.
With this local content use achievement, Pertamina received in March 2024 an appreciation for Domestic Product Use in 2024 in the category of SOEs from the Industry Ministry. By comparison, Pertamina Group's local content use, valued at Rp 374 trillion, is equivalent to 47 percent of total local content use achieved by SOEs in 2023, which reached approximately Rp 800 trillion.
“We thank the government of Indonesia for this appreciation. This motivates Pertamina to continue increasing its local content use, thereby further supporting domestic industries and positively impacting the national economy,” added Fadjar.
According to studies by the Pertamina Energy Institute and the University of Indonesia, this local content use achievement by Pertamina also creates a multiplier effect, generating employment for 4.1 million people and increasing the gross domestic product (GDP) by up to Rp 702 trillion, equivalent to 3.4 percent of the gross added value of all economic sectors in a region (GDP ADHB). Nationally, this has the potential to generate state revenue of up to Rp 1,251 trillion.
As a national energy company, Pertamina’s products also contribute to domestic energy supply. Pertamina’s national oil production and natural gas production account for 69and 34 percent of Indonesia’s energy demand, strongly contributing to Indonesia's energy security. In 2023, Pertamina also achieved 100 percent self-sufficiency in producing diesel and aviation fuel.
“Efforts to increase oil and gas production are continuously carried out by boosting production from existing blocks, as well as through Pertamina’s acquisition and expansion of overseas blocks. Pertamina is also working to enhance refinery and petrochemical products through the refinery development master plan [RDMP] program to improve the quality and variety of refinery products,” Fadjar added.
Pertamina also urges the public to use Pertamina products as domestic products. For retail products, Pertamina’s energy distribution access to the public has reached 98 percent of Indonesia, particularly with the BBM 1 Price program, one village one outlet (OVOO), and Pertashop.
“Playing a dual role as a user of local components and an energy provider for the public, Pertamina continuously strives to improve the quality of its products to become the main choice for the public. We hope that the public will use high-quality local products to enhance the national economy and realize domestic self-sufficiency,” he added.
