Pertamina’s Conversion Fuels Growth and National Energy Security
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JAKARTA — PT Pertamina (Persero) is undergoing a company-wide transformation to bolster its performance and fortify Indonesia’s energy security, according to Deputy Director Wiko Migantoro. Speaking at a House of Representatives Commission XII Hearing Meeting (RDP) on Thursday, Feb. 20, 2025, Migantoro highlighted the success of the holding subholding restructuring. This restructuring, he explained, has created a more agile and efficient operation, leading to improved performance across all business lines.
Migantoro emphasized Pertamina’s dual growth strategy for 2025, which involves maximizing existing assets and investing in low-carbon initiatives. “The restructuring has proven successful in improving the operational and financial performance of Pertamina Group,
” Migantoro explained, quoted from a press release.
The legacy business focus includes increasing upstream production, enhancing refinery adaptability, and expanding retail operations. Simultaneously, Pertamina is aggressively pursuing low-carbon energy sources. This includes expanding biofuel ecosystems, increasing geothermal capacity, developing downstream chemical products, and investing in other low-carbon energy ventures.
Pertamina’s crucial role in Indonesia’s energy security is undeniable. “Pertamina plays a very critically important role in oil and gas upstream energy security by managing 69% of national oil production and 37% of gas production from the domestic oil and gas blocks that we manage,
” Migantoro stated.
Upstream Sector Targets
In the upstream sector, Pertamina plans to substantially increase oil and gas production in 2025. this will be achieved through strategic optimization of existing assets, growth programs, enhanced Oil recovery (EOR) techniques, and accelerating production from recent exploration discoveries. The company also aims to increase economic reserves through both organic growth and fiscal discussions with the government.
Specific targets include a 4 percent increase in domestic oil production,reaching 416 million barrels of oil per day (MBOPD),and a 3 percent increase in domestic gas production,reaching 2,536 million standard cubic feet per day (MMSCFD).
Downstream and Processing Sector Goals
Pertamina’s processing sector aims to increase refinery intake by 3 percent to 334 million barrels compared to the previous year.This will be accomplished through refinery rejuvenation, improved product yield, competitive raw material acquisition, and the completion of Refinery Development Master Plan (RDMP) projects.
Downstream, the company targets a 1 percent increase in the distribution of fuel, non-fuel, and petrochemicals, reaching 106 million kiloliters (KL). Migantoro noted that Pertamina will continue to improve its digital infrastructure to better target subsidized fuel distribution and promote non-public Service Obligation (PSO) products.
Further growth is planned for marine logistics,with a 2 percent increase in domestic cargo volume,reaching 102 million KL,supported by an expanded fleet of ships.Gas distribution is projected to increase by 12 percent to 958 billion British thermal units per day (BBTUD), driven by expanding household gas networks and increased customer demand.
Pertamina New & Renewable Energy (PNRE) aims for a 2 percent increase in power plant capacity, reaching 2,602 megawatts (MW). This growth will be supported by geothermal operations from Lumut Balai 2 and net electricity production from the Java PLTGU 1.
Commission XII’s Support and Concerns
The House of Representatives Commission XII expressed its recognition for Pertamina’s commitment to national energy security.though, commission XII Head Bambang Patijaya emphasized the importance of maintaining fuel and 3-kilogram LPG supplies, notably during Ramadan and Eid al-Fitr 1446 H. He also stressed the timely completion of the RDMP projects.
Pertamina’s Transformation Strategy: Fueling Growth and National Energy Security
A Deep Dive into Indonesia’s Strategic Energy Shift
In a world increasingly focused on sustainability, Indonesia’s national oil and energy conglomerate, PT Pertamina, stands at the forefront of a remarkable transformation aimed at driving growth and ensuring national energy security. Let’s explore this pivotal shift with insights from Dr. Anita Setiawan, a leading energy analyst with a deep understanding of Indonesia’s energy sector dynamics.
Editor: Dr. Setiawan, welcome! In your expert opinion, why is Pertamina’s transformation considered a game-changer for Indonesia’s energy landscape?
Dr. Setiawan: Pertamina’s transformation is a bold leap towards a more agile and efficient energy sector in Indonesia. This systemic change is not merely an operational reshuffle but a visionary strategy that combines empowering existing resources with advancing low-carbon energy initiatives. By restructuring into a subholding model,Pertamina has laid the groundwork for improved operational and financial performance across all buisness lines,positioning itself as a resilient player in both traditional and renewable energy markets. This dual strategy isn’t only aimed at increasing production but also at fortifying Indonesia’s standing as a leader in energy security through innovation and sustainability.
Editor: You mentioned a dual growth strategy focusing on maximizing assets and low-carbon initiatives. How is Pertamina balancing these seemingly diverse goals?
Dr. Setiawan: balancing these goals involves a harmonious blend of optimization and expansion. On one hand,Pertamina is enhancing its legacy business through increased production in the upstream sector—aiming for a 4 percent increase in oil and a 3 percent boost in gas production. This will leverage enhanced oil recovery techniques and successful exploration projects. Conversely, they are scaling their low-carbon solutions by investing in biofuel ecosystems, geothermal capacity, and other renewable energies.
By setting clear targets, such as a 2 percent increase in geothermal operations and expanding marine logistics, Pertamina ensures each initiative is well-supported and aligns with its overarching goal of energy diversification and sustainability. This multifaceted approach not only addresses immediate energy needs but also anticipates long-term environmental commitments.
Editor: With notable targets set for both upstream oil production and downstream refining and processing,what challenges might pertamina face?
Dr. Setiawan: While the goals are enterprising, they come with inherent challenges. Increasing refinery intake by 3 percent and boosting distribution capacity requires cutting-edge technological upgrades and the completion of strategic projects like the Refinery Advancement Master Plan (RDMP). Moreover,these efforts must be synchronized to avoid bottlenecks and ensure efficient raw material and product flow.
However, Pertamina is also faced with the broader challenge of aligning fiscal policies with its growth strategies—a dialog that involves negotiation and understanding with government stakeholders. Coupled with the crucial task of maintaining fuel and LPG supplies, especially during high-demand periods like Ramadan and Eid, these challenges underscore the complexity of achieving seamless operational fluidity.
Editor: With growing domestic and international interest in renewable energies, how is Pertamina positioning itself with initiatives like Pertamina New & Renewable Energy (PNRE)?
Dr.setiawan: PNRE signifies a strategic pivot toward sustainable energy options that align with global trends and local needs. By aiming for a 2 percent increase in power plant capacity and securing resources like Lumut Balai 2’s geothermal operations, PNRE is not only expanding domestic renewable energy production but also diversifying the energy portfolio.
This initiative reflects a commitment to environmental stewardship while securing energy independence. It represents a broader shift in the energy sector where companies are not just addressing demand but doing so responsibly and sustainably. By expanding its renewable footprint, Pertamina can reduce carbon emissions and pivot towards a more balanced energy ecosystem.
Editor: Considering the supportive stance of the House of Representatives Commission XII, what steps will ensure the timely execution of Pertamina’s vast projects?
Dr.Setiawan: Collaboration between government bodies and Pertamina remains pivotal. Commission XII’s backing reinforces the importance of maintaining energy security, especially during critical periods. Their emphasis on timely project completion and resource management underscores the need for effective governance structures and transparent, synergistic dialogues.
Pertamina must continue to prioritize strategic project management and leverage digital infrastructure to enhance operational efficiencies. This will support not only the completion of RDMP projects in a timely manner but also the seamless distribution of fuels and renewables, ensuring energy stability across Indonesia.
Editor: what lasting impact do you foresee from Pertamina’s transformation on Indonesia’s energy sector and national security?
Dr. Setiawan: Pertamina’s transformation is more than a strategy; it’s a blueprint for the future of Indonesia’s energy security. The restructuring and strategic investments in both traditional and renewable energies are vital in cementing Indonesia’s role on the global energy stage. These efforts will not only elevate operational efficacy but also fortify national resilience against energy disruptions.
By setting a precedent for sustainable growth and innovation, Pertamina is not only ensuring immediate energy needs are met but also laying down a foundation for future generations. The long-term impacts will likely see Indonesia becoming a pivotal player in the global energy narrative, driving both economic growth and ecological balance.
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