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House Commission VI Commends Pertamina's 2023 Performance
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Pertamina Deputy President Director Wiko Migantoro speaks on June 12, 2024 at a meeting with House of Representatives Comission VI.
H
ouse of Representatives (DPR) Commission VI, which oversees areas including trade, industry and state-owned enterprises (SOEs), has commended Pertamina for its positive performance last year.
"Commission VI appreciates the operational and financial performance of PT Pertamina in 2023, which has succeeded in growing amid fluctuating geopolitical and global economic conditions. We encourage Pertamina to continue improving its performance for the coming periods," said House Commission VI Deputy Chairman Aria Bima at a meeting with Pertamina on June 12, 2024.
Aria Bima added that Commission VI also encouraged the state-owned oil and gas holding company and each of its subholding companies to ensure the availability, distribution and affordability of fuel oil and gas. Relevant efforts included increasing supervision of and evaluating subsidized fuel oil and gas distribution systems, as well as optimizing digitalization to support national energy security.
Pertamina Deputy President Director Wiko Migantoro affirmed the company’s commitment to being at the forefront of efforts to maintain national energy security.
"Energy security is assessed by four benchmarks: availability, accessibility, affordability and acceptability," Wiko told the meeting with House Commission VI on Wednesday.
Regarding availability, Wiko said Pertamina has increased its contribution to the upstream sector, which had reached 69 percent of the national oil lifting target and 34 percent of the national gas lifting target to date.
"In the upstream sector, Pertamina's oil and gas production in 2023 grew 8 percent from 967 mboe/d [million barrels of oil equivalent per day] in 2022 to 1,044 mboe/d. In the downstream sector, Pertamina's fuel production meets 70 percent of national fuel needs," he added.
Wika emphasized that Pertamina was committed to enhancing accessibility and affordability, with the former referring to the connection between energy sources and consumers, and the latter pertaining to the energy prices Pertamina set for consumers.
Continuing, he said Pertamina's energy distribution coverage had now reached 98 percent, supported by the 1 Price Fuel Oil, Pertashop and One Village One Outlet (OVOO) programs. For gas, Pertamina had built 820,000 household gas network connections.
"We also have a comprehensive supply chain with shipping operations, with Pertamina operating 784 tankers and support ships," said Wiko.
As for acceptability, defined as sustainable energy to achieve net-zero emissions (NZE) in 2060, Pertamina had produced 1,877 megawatts (MW) of geothermal energy, equivalent to 78 percent of national output. Pertamina had also constructed solar power plants (SPPs) with a combined capacity of 53 megawatts peak (MWp).
Additionally, Pertamina had innovated by producing biofuel variants such as B35, hydrogenated vegetable oil (HVO), Bioethanol E5 and sustainable aviation fuel product SAF2.4.
"In the decarbonization aspect of scopes 1 and 2, Pertamina succeeded in reducing emissions by 8.5 million tonnes of carbon dioxide equivalent [CO2e], or 34 percent of operational emissions," Wiko added.
As a result, Pertamina's environmental, social and governance (ESG) risk rating now ranked number one globally in the integrated oil and gas subindustry, leading among 61 world companies with a score of 20.7 according to ESG research and rating firm Sustainalytics.
In its 2023 financial performance, PT Pertamina recorded a total profit of around Rp 72.7 trillion, a 17 percent increase from 2022.
"Thank you for the support from DPR Commission VI, which enables us to continue operating and growing with the aim of [achieving] national energy security," said Wiko.
Pertamina Vice President Corporate Communication Fadjar Djoko Santoso added that the company's growth last year was supported by the performance of all subholding companies under the Pertamina Group umbrella.
Its performance was also in line with the company's commitment to implement the five priority pillars as mandated by the SOEs Ministry: economic and social value, business innovation, technology use, increased investment and empowering human resources.
