Heaptalk, Jakarta — As a result of digitalization and technological research innovations, Pertamina achieved positive performance across nearly all its business lines in 2023. This outstanding performance has received global recognition, including being listed as the largest company in Southeast Asia on the Fortune 500 SEA.
According to Nicke Widyawati, President Director of Pertamina, the company has integrated its upstream to downstream business through digitalization. “We have started using AI to process and analyze data more swiftly, enabling accurate decision-making,” Nicke stated in her written statement (06/23).
The state-owned oil and natural gas corporation continuously develops research and technology to enhance high-value products. Pertamina manages 24% of the upstream sector, contributing 69% to oil production and 34% to gas production. The management of thousands of wells is digitalized and connected to downstream operations.
Invested heavily in upstream sector
In 2023, Pertamina’s Upstream Subholding succeeded in increasing oil and gas production by 8%. The company also boosted new oil and gas reserves from both existing and new oil and gas blocks. Nicke noted, “To increase oil and gas production, Pertamina drilled around 800 new wells. Therefore, 62% of Pertamina’s investment lies in the upstream sector.”
Pertamina’s Refining & Petrochemical Subholding maintained refinery productivity with a capacity of 1.025 million barrels per day in the refining sector. Throughout 2023, refinery operations ran without unplanned shutdowns. “This is not something sudden, but a five-year process during which Pertamina has revamped refineries,” Nicke added. Last year, Pertamina implemented nine projects to enhance productivity and energy efficiency and increase refinery capacity.
In the downstream sector, Pertamina’s Commercial & Trading Subholding utilized digitalization to control quotas for subsidized fuel and LPG and increased sales of non-subsidized fuel by 2%, with most consumers being industrial.
For the transportation business, Pertamina’s Integrated Marine & Logistic Subholding operated 760 ships and continued international business expansion. Through Pertamina International Shipping (PIS), the corporation now has 50 international shipping routes. In 2023, the volume transported reached 161 million kiloliters (kl), up 3% from 2022.
Accelerating energy transition
The business development performance of the Gas Subholding also showed excellent results. Gas sales volume reached 337 thousand BBTU in 2023, up 3% from 327 thousand BBTU. Gas is Pertamina’s flagship product in energy transition, and gas infrastructure development will accelerate the energy transition in Indonesia. “The key to energy transition lies in gas, as it serves as a bridge from fuel to renewable energy,” Nicke said.
Through the Power & NRE Subholding, the corporation also increased clean energy production by 17% to 5,452 GWh from 4,659 GWh. Nicke mentioned, “Last year, PNRE completed a gas project integrated with regasification in Southeast Asia, namely PLTGU Jawa 1 with two units each with a capacity of 880 MW.”
In addition to positive performance, Pertamina also conducted its business processes from upstream to downstream in a more environmentally friendly manner. The corporation successfully reduced carbon emissions by 34%, higher than the government’s target of 31.89%. As a result, Pertamina’s ESG rating ranked first globally in the Integrated Oil and Gas sub-industry.
