Category: ASEAN

Spritzer Rolls Out Iconic New Silica-Rich Natural Mineral Water Bottle

  • Malaysia’s leading bottled mineral water producer unveils sustainable packaging with trendy new look

Malaysia’s leading bottled water producer, Spritzer, has officially launched a new iconic bottle with a trendy and vibrant style made by fully recycled packaging made with recycled materials.

Group Chief Executive Officer of Spritzer, Mr. Lim Seng Lee

The bottle’s sleek and modern-looking curve is shaped like a water droplet and is designed with an ergonomic grip. The turquoise colour scheme, a blend of blue and green, represents nature’s purity, calmness, serenity and peace while the new corporate logo is inspired by the Company’s pristine 390-acre water catchment area, which is within the protected rainforest vicinity in Taiping, Perak. The new bottles made with sustainable packaging allows consumers to recycle and to create new life to the packaging which directly helps to reduce carbon emission.

Group Chief Executive Officer of Spritzer, Mr. Lim Seng Lee said, “Spritzer is stepping up the Company’s sustainability initiatives and the new iconic bottle serves the purpose of modern aesthetics as well as encouraging consumers to bring new life to the bottles through recycling, through ‘New Look New Purpose’. The new look was inspired by nature. Every element of the label comes with a story, and the new purpose came from our fully recyclable packaging made with recycled material.”

Spritzer is the number one mineral water brand in Malaysia with strong international recognition, and this is being pushed through with successful entry into key markets such as the United Kingdom, Netherlands, China, Hong Kong, and South Korea. With Spritzer continuing to expand its market reach, the new look as well as sustainable packaging will help in strengthening the brand’s position internationally.

Lim added, “Spritzer continues to invest in research and development activities to share with consumers the research on the health benefits of drinking silica-rich natural mineral water. The benefits include how silica-rich mineral water can optimize the synthesis of collagen and helps to remove the aluminium level from our bodies.”

Spritzer has received many accolades and awards over the years, including being awarded the Superior Taste Award by the International Taste Institute and the first Diamond Taste Award Mineral Water in Malaysia. Other awards include the Reader’s Digest’s Trusted Brands 2022 platinum award for 21 consecutive years.

The launch was also attended by renowned singer and actress Ayda Jebat as well as actor Meerqeen.

Spritzer would like to thank consumers for their support and loyalty over the years as they have been the reason for which the Company has endeavoured throughout the decades to ensure that its natural mineral water is of the highest quality and achieve a better and more sustainable future.

Spritzer Bhd: [Bursa: SPRITZER; 7103] [RIC: SPTZ:KL] [BB: SPZ:MK] [OTC: SPZRF], https://www.spritzer.com.my

Strong ESG implementation gets Pertamina international recognition

State-owned oil and natural gas corporation PT Pertamina has gained recognition from several international institutions over its strong implementation of the environmental, social, and governance (ESG) approach this year.

Strong implementation of environmental, social, and governance (ESG) approach by Indonesian state-owned oil and natural gas corporation PT Pertamina this year gained recognition from a number of international institutions. (ANTARA/HO-PT Pertamina)

Pertamina’s ESG implementation, which is getting stronger, has attracted international interest, as seen from the acknowledgment from a number of institutions and international awards, the company stated in a release received here on Tuesday.

The latest acknowledgment has come from JP Morgan, which included Pertamina in its ESG Emerging Market Bond Instrument (JESG EMBI) Index and assigned it a score of 44.2 in June 2022. The score is higher than the threshold of 20 set by JESG EMBI.

It shows that Pertamina has succeeded in improving its business, especially in terms of environmental insight, sustainability, and aspects of good governance, the company said.

“With this recognition, Pertamina has the opportunity to access wider funding in the market, including more competitive interest rates,” it added.

Pertamina’s position has also become more recognized globally as a motor that drives sustainability in Indonesia, especially since the country has also committed to implementing the Paris Agreement on reducing carbon emissions.

“In line with Pertamina’s vision to become a sustainable global energy company, we continue to improve the company’s ESG aspects in accordance with international sustainability practices so that our initiatives are in accordance with ESG standards,” said Emma Sri Martini, Pertamina’s finance director who is also a committee member of Pertamina Sustainability.

Pertamina has undertaken several measures in its sustainability efforts, including contributing to reducing carbon emissions, maintaining biodiversity, and implementing good corporate governance (GCG).

Further, Pertamina succeeded in reducing 7.4 million tons of carbon equivalent, or around 29 percent, by 2021 from the 2010 baseline.

Meanwhile, to maintain biodiversity, the company, in the past five years, has carried out conservation efforts for around 30 endemic animal species and around 24 plant species, most of which have become nearly extinct.

Regarding the implementation of GCG, Pertamina earlier this year won the Anti-Bribery Management System certification, which signifies the company’s commitment to implementing accountable work practices.

Apart from its inclusion on the JP Morgan Index, Pertamina also received a number of awards for sustainability efforts.

In June 2022, Pertamina and its affiliate, Pertamina Hulu Rokan, won the Indonesian Sustainability Business Award (SBA) in the “Highly Recommended” category.

The SBA is given to companies that are considered to have a very strong sustainability commitment and demonstrate consistent efforts in various sustainability areas as well as have a good road map for sustainability implementation.

SBA Indonesia has been instituted by Global Initiatives, an international company based in Singapore that is concerned with sustainability issues. Global Initiatives organizes the award program with some local partners, namely PwC Indonesia, the Indonesian Business Council for Sustainable Development (IBCSD), Control Union, and the Indonesian Chamber of Commerce and Industry (Kadin).

The award is also held in several other countries besides Indonesia, namely Singapore, Malaysia, the Philippines, and Thailand.

Earlier, Pertamina had also received an ESG score of 28.1 from Sustainalytics in 2021, which reflected a moderate level of risk, on par with other companies such as Spanish energy company Repsol and Italian oil industry company ENI.

In addition, the World Benchmarking Alliance (WBA) also placed Pertamina 49th out of 100 oil and gas companies in the WBA Climate & Energy topic.

“We also encourage all Pertamina sub-holdings and affiliates to improve the implementation of ESG aspects, so that the company’s operational and business programs can further implement some applicable rules according to ESG best practices,” Martini said.

Launched in 2018, the WBA seeks to generate a movement around increasing the private sector’s impact on efforts to build a sustainable future for all.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Yuni Arisandy Sinaga, Editor: Rahmad Nasution (c) ANTARA 2022

Indonesian peace mission on Russia-Ukraine conflict

President Joko Widodo has accomplished his visits to Ukraine and Russia on Thursday evening (June 30) to invite both countries to build dialogue, stop the war, and build peace.

President Joko Widodo has visited Kyiv, Ukraine, for a peace mission. (Laily Rachev – Biro Pers Sekretariat Presiden)

President started his mission by visiting Kiev, Ukraine. At the Maryinsky Palace, Kyiv, Jokowi was greeted by Ukrainian President Volodymyr Zelenskyy on Wednesday afternoon (June 29).

For Ukraine, that day was a historic day, as President Jokowi’s visit was the first one to be made by an Asian leader since the start of the Russian invasion of Ukraine.

Jokowi, during a joint press statement with Zelenskyy, conveyed several important points from his visit to Ukraine.

“I conveyed to President Zelenskyy that I made this visit as a manifestation of Indonesia’s concern for the situation in Ukraine,” he remarked.

He reiterated the invitation to Zelenskyy to attend the G20 Summit in November 2022 in Bali.

Jokowi also emphasized Indonesia’s principled position regarding the importance of respect for sovereignty and territory.

“Although it is still very difficult to achieve, I still convey the importance of a peaceful settlement, and the spirit of peace must never fade,” he affirmed.

Indonesia will strive to contribute through assistance, including medicines, and remain committed to reconstructing one of the hospitals around Kiev.

To this end, President Jokowi offered to carry a message from President Zelenskyy to President Putin.

On the other hand, President Zelenskyy praised Jokowi’s visit because Indonesia hosts the G20 Presidency this year and is the strongest country in ASEAN.

Zelenskyy expressed optimism that it would strengthen the effort to end the war.

After visiting Kiev, President Jokowi also made a visit to Moscow, Russia and meet Russian President Vladimir Putin.

During the visit, Jokowi emphasized the issue of peace and humanity has always been a priority for Indonesia.

“The Indonesian Constitution mandates Indonesia to always try to contribute to the creation of world peace. In this context, I made visits to Kiev and Moscow,” he stated.

He also emphasized that food and fertilizers were humanitarian issues and were of interest to the world community. Thus hundreds of millions of people affected by disruptions, especially in developing countries.

Hence, Jokowi lauded Putin’s guarantee for the security of food and fertilizer supplies.

Jokowi stressed that Indonesia has no interest apart from helping resolve the war between Russia and Ukraine.

“I invite all world leaders to work together to revive the spirit of multilateralism, the spirit of peace, and the spirit of cooperation,” President Jokowi stated.

Meanwhile, Putin noted that Indonesia is one of their key partners in the Asia-Pacific region.

“Russian-Indonesian relations are constructive and mutually beneficial, developing steadily on the basis of long-standing good traditions of friendship and mutual assistance,” he said.

During the joint press conference, President Jokowi reiterates the importance of the spirit of peace.

With President Jokowi’s visit to Ukraine and Russia for a peaceful mission, hopes are pinned high on the war ending soon and the food crisis being mitigated quickly.

Written by: Katriana, Editor: Rahmad Nasution (c) ANTARA 2022

Indonesia recommends Energy Transition Policies at B20 ESC Meeting

The B20 Energy, Sustainability, and Climate (ESC) Task Force has drafted recommendations and policy actions on global energy transition during the 5th call meeting that was held virtually on June 21, 2022.

Deputy Chair of the Energy, Sustainability and Climate Task Force Agung Wicaksono speaks at the B20 Side Event: Energy, Sustainability & Climate Task Force, held virtually on Tuesday, June 21 (ANTARA/HO-PT Pertamina)

According to the Task Force’s deputy chair, Agung Wicaksono, the recommendations and policies have been intensively discussed by the members for the last five months, and the drafts mark the end of the journey of the planning process.

“It is truly an honor and privilege for me to convene the last Task Force Call Meeting today, and especially for all members who have been present to share their thoughts and bright ideas and dedicate themselves to the goal solutions of co-financing the global energy sustainability and climate change issues,” Wicaksono said in a statement released Wednesday.

On the same day during a side event held in Rome, Italy, Wicaksono also said that the Task Force had worked closely in advancing global cooperation, which is an important element in drafting policy recommendations.

“I believe our Task Force is one of the most anticipated and enthusiastic in this B20 event because up to this date, we have received more than hundreds comments and inputs from all of us. It is not an easy task to incorporate all valuable perspectives and ideas into the policy drafts,” he added.

The fifth draft is the result of a meticulous decision to accommodate, integrate, and simplify ideas so that they can be attainable.

“Furthermore, after the last meeting, we have also included the KPIs and SDGs monitoring, as well as the final policy drafts. However, we would like to inform you that this fifth draft cannot be altered substantially,” Wicaksono said.

Meanwhile, the Policy Manager of the B20 ESC Task Force Indonesia, Oki Muraza, announced the last three policy recommendations, the first is to increase the global cooperation in accelerating the sustainable energy transition by reducing the intensity of carbon energy use through various channels.

“The main highlights in this recommendation are promoting energy efficiency, creating coal-fired power plants in gradual stages, reducing emissions from sectors that are difficult to reduce, facilitating financing to developing countries, and innovating climate technology,” Muraza said.

The second recommendation is to increase global cooperation to ensure a just, orderly, and affordable transition to sustainable energy use in all developed and developing countries.

“(Through) running an orderly transition in primary energy sources, involving the participation of MSMEs in the energy transition, preparing for the transition of the workforce, and implementing sustainable mining practices,” he said.

Lastly, the third recommendation is to increase global cooperation to extend the access to consumers and their ability to utilize clean modern energy.

“We must develop integrated energy solutions so that the access to clean energy can be reached to the level of household and MSME, as well as carrying out a broad energy transition,” Muraza said.

The all three policy recommendations mentioned will be brought further to the B20-G20 Dialogue in July, and later be included the policy formulation at the G20 Indonesia Presidency 2022.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Yashinta Difa Pramudyani, Editor: Fardah Assegaf (c) ANTARA 2022

Indonesian calls, messages at G7 Summit

Indonesian President Joko Widodo (Jokowi) has arrived at the venue of the 48th G7 Summit in Schloss Elmau, Germany on Monday afternoon (June 27) local time (UTC+1) to attend the meeting in the capacity of a partner country and as the G20 President.

Indonesian President Joko Widodo in conversation with French President Emmanuel Macron and United States President Joe Biden while attending the G7 Summit in Elmau, Germany, Monday, June 27, 2022. ANTARA/HO-Press Bureau of the Presidential Secretariat/Laily Rachev/aa/ak. (Handout of Press Bureau of the Presidential Secretariat/Laily R)

The G7 is an informal forum bringing together leaders of the world’s leading industrial nations from the European Union and countries such as Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

Jokowi was welcomed by German Chancellor Olaf Scholz.

During the official welcoming session by the chancellor, Jokowi was present with the leaders of G7 partner countries, including Argentine President Alberto Fernandez, Indian Prime Minister Narendra Modi, Senegalese President Macky Sall, and South African President Cyril Ramaphosa.

Furthermore, during the photo session, he posed for a picture accompanied by the German chancellor and United States President Joe Biden.

All heads of government attended two sessions of the G7 meeting.

President Jokowi invited G7 countries to contribute to capitalizing on investment opportunities in the clean energy sector in Indonesia.

President Jokowi conveyed the statement while attending the G7 Summit working lunch session based on the topics of climate change, energy, and health in Elmau, Germany, Monday (June 27).

“(This is) especially (regarding) investment opportunities in the clean energy sector in Indonesia, including the development of an electric car and lithium battery ecosystem,” the president stated.

According to President Jokowi, Indonesia’s potential, as a contributor to clean energy, whether in the bowels of the earth, on land, or at sea, is very large. Indonesia needs large investments and low-carbon technologies to support a fast and effective transition to clean energy.

“Indonesia needs at least US$25-30 billion for energy transition in the next eight years. We can optimize this transition as a motor of economic growth, open up business opportunities, and create new jobs,” President Jokowi stated.

Furthermore, the president noted that in Indonesia as well as in other developing countries, the risk of climate change is very real, especially since it is an archipelagic country, with 17 thousand islands. The risks are not only detrimental to health but also put farmers and fishermen in trouble.

“We really hope for the support of all G7 countries in the Indonesian Presidency at the G20. See you in Bali. Thank you,” the president stated.

During session II of the G7 summit on the topics of food security and gender equality, President Jokowi called on G7 and G20 countries to jointly overcome the food crisis that currently threatens people in developing countries to fall into extreme hunger and poverty.

“(Some) 323 million people in 2022, according to the World Food Programme, are at risk of facing acute food insecurity. The G7 and G20 have a big responsibility to overcome this food crisis. Let us fulfill our responsibilities now and from now on,” President Jokowi affirmed.

According to the president, food is the most basic human rights issue. Indubitably, women from poor families suffer the most from food shortages for their children and families.

“We must act quickly to find a concrete solution. Food production must be increased. The global food and fertilizer supply chain must return to normal,” the president stated.

In his speech, President Jokowi emphasized the importance of G7 countries’ support for the reintegration of Ukraine’s wheat exports and Russia’s exports of food and fertilizer commodities in global supply chains.

There are two ways to realize this, with the first being the facilitation of Ukraine’s grain exports that can begin immediately.

According to the president, the second approach is proactive communication with the public worldwide that food and fertilizer commodities from Russia are not subject to sanctions.

“This intensive communication is very necessary, so that there is no prolonged doubt in the (minds of the) international public. This intensive communication also needs to be strengthened with communication with related parties, such as banks, insurance, shipping, and others,” the president explained.

President Jokowi had paid significant attention to the impact of the war on food and fertilizer supply chains.

“(This is) especially for fertilizers, because if we fail to handle it, then a rice crisis involving two billion people, especially in developing countries, can occur,” the president cautioned.

At the end of his remarks, the president again called for the importance of the G7 and G20 countries to jointly overcome this food crisis while also inviting G7 leaders to attend the G20 Summit in Bali.

“I am waiting for the G7 leaders to attend the G20 summit. See you in Bali, on November 15-16, 2022,” President Jokowi stated.

Meanwhile, Minister of Foreign Affairs Retno Marsudi noted that the president held about nine bilateral meetings with: the Prime Minister of India; French President; Prime Minister of Canada; Chancellor of Germany; British Prime Minister; Prime Minister of Japan; President of the European Commission; President of the Council of Europe; and the Managing Director of the IMF.

During the bilateral meetings, besides inviting other countries to solve the problems of the food supply chain, president Jokowi also highlighted the preparations for the G20 Summit.

“In these meetings, we can clearly see that support for the Indonesian Presidency is still very strong,” Marsudi noted.

In 2022, Germany takes over the G7 Presidency and hosts the 48th G7 summit held on June 26-28, 2022, in Schloss Elmau.

The G7, originally G8, was set up in 1975.

The annual G7 summits have, over the years, developed into a platform for determining the course of multilateral discourse and shaping political responses to global challenges.

Written by: Azis Kurmala, Editor: Fardah Assegaf (c) ANTARA 2022

Spritzer wins Platinum Award in Reader’s Digest Trusted Brands 2022

Spritzer is pleased to announce that the Company has recently won the Reader’s Digest’s Trusted Brands 2022 platinum award under the Food & Beverage – Bottled Water category.

Dr. Chuah Chaw Teo, R&D Director of Spritzer Bhd; and Sheron White, Group Advertising and Retail Sales Director for Reader’s Digest Asia-Pacific

This year’s Reader’s Digest Trusted Brands 2022 award presentation ceremony was held at the Grand Hyatt Hotel Kuala Lumpur. The event also celebrated the 100th anniversary of Reader’s Digest, a global brand with 23 editions in 41 countries.

“I am deeply humbled to receive this important award from Reader’s Digest Trusted Brands 2022 on behalf of Spritzer. Spritzer has won this award, for 21 years. This achievement is a very powerful endorsement of the popularity and trust of the Spritzer Brand from our loyal and faithful consumer. This is a huge honour for us, and I thank you all for your very strong support,” said Dr. Chuah Chaw Teo, Research and Development Director of Spritzer Bhd.

“Spritzer will continue on the journey to give only the best quality natural mineral water to our consumers while striving to also give back to society.”

Reader’s Digest Trusted Brands 2022 was conducted independently by leading market research company Catalyst Research. The award saw the opinions and votes of approximately 8,000 individuals from Asia based on the key attributes of Trustworthiness and Credibility; Quality; Value; Understanding of Customer Needs; Innovation and Social Responsibility.

Spritzer specialises in manufacturing and distribution of natural mineral water, sparkling mineral water, distilled drinking water, non-carbonated fruit flavoured drink and fruit flavoured drink. The company has been in operation for more than 30 years, and is the country’s largest bottled water producer.

Spritzer Bhd: [Bursa: SPRITZER; 7103] [RIC: SPTZ:KL] [BB: SPZ:MK] [OTC: SPZRF], https://www.spritzer.com.my

B20 task force highlights recommendations to support net zero-carbon

The B20 Energy, Sustainability & Climate Task Force, led by state-owned oil giant Pertamina Group, put forth three recommendations to support realization of the target of net-zero carbon emissions.

The B20 Energy, Sustainability & Climate (ESC) Task Force held entitled the third Task Force Call Meeting on Thursday, April 19 (ANTARA/HO-Pertamina)

“Climate change sustainability is something that we must strive for in the future. For this reason, the B20 Energy, Sustainability, and Climate Task Force has compiled policy recommendations that focus on three recommendations, with 12 policy actions that call for global cooperation,” Deputy Chair of B20 Energy, Sustainability, and Climate Task Force Agung Wicaksono said in a statement obtained here on Thursday.

He delivered the statement during the hybrid dialogue forum of Energy Transition in Growth Markets on Tuesday (June 21).

This forum is one of the events conducted by the Task Force Energy, Sustainability & Climate (ESC) and the Task Force Future of Work and Education in collaboration with the Accenture International Utilities and Energy Conference held on June 21-23, 2022, in Rome, Italy.

Themed “Maximizing the Value of the Energy Transition in Growth Markets and Paving the Way to B20,” this forum discusses the future of the energy industry in an era that prioritizes sustainability and low emissions for a green future and a more sustainable planet.

The three policy recommendations include accelerating the transition to sustainable energy use by reducing carbon intensity in different ways. The second is ensuring a just, orderly, and affordable transition to sustainable energy use. The third recommendation pertains to increasing energy security, so that consumers can access and consume clean and modern energy.

“We are working hard to ensure there is an alignment between the performance targets set by the Italian B20 last year and our performance targets this year, so there will be a continuity,” Wicaksono stated.

To ensure a fair, orderly, and affordable transition to sustainable energy use, Wicaksono stated that the pricing in developing countries should be taken into consideration. Thus, it is necessary to formulate ways to integrate the benefits of carbon pricing into the energy transition pricing.

“With the energy transition, we must also think about the security and availability aspects of world energy. At the same time, we must also ensure that everyone has access to clean and modern energy,” he emphasized.

The managing director of Jababeka Infrastructure stated that the potential of decarbonization towards net-zero emission also comes from industrial areas. Furthermore, he invited companies in the B20 to conduct global collaborations that will result in business actions, as the provision of renewable energy for industrial companies with a large demand can contribute to achieving the energy transition target, he affirmed.

Wicaksono also accentuated the importance of energy transition and the important role of the B20 Energy, Sustainability, and Climate Task Force in achieving energy transition priorities, especially to achieve net-zero emissions.

On the same occasion, Chairman of the Indonesian Chamber of Commerce and Industry Arsjad Rasjid stated that currently, the main players in the energy and utility areas are facing challenges.

Collaboration becomes increasing important for achieving significant reductions in carbon emissions and a progressive transition from carbon-generating energy to environmentally friendly, greener, and sustainable energy, Rasjid stated.

“The transition to greener energy does not mean stopping profits for the company. The company’s move towards clean energy will create added value for brands and consumers to become more confident and have a positive outlook,” he remarked.

Head of Indonesia’s B20 Organizer, Shinta Kamdani, stated that energy transition should provide benefits and not create burden. Kamdani pressed for making meticulous preparations for the energy transition, including conducting mitigation of the costs and impacts.

“This energy transition certainly requires substantial financial support. The G20 countries, which contribute 80 percent of the world’s economy, are expected to provide this support for the transition process. Several main priorities must be put forward in this energy transition, such as accessibility, technology, and funding,” Kamdani stated.

The event was moderated by Gianfranco Casati and Valentin de Miguel from Accenture that are the Co-Chair and Deputy Co-Chair of the B20 Energy, Sustainability, and Climate Task Force.

The forum also presented other keynote speakers: the Chair B20 Future of Work & Education Task Force/President Director of Astra Otoparts/Director of PT Astra International Tbk, Hamdhani D. Salim; Co-Chair B20 Future of Work & Education Task Force/IOE Vice President to The ILO, Renate Hornung Draus; WEF Head of Energy, Materials and Infrastructure, Kristen Panerali; and ENI Evolution CEO, Giuseppe Ricci.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Azis Kurmala, Editor: Sri Haryati (c) ANTARA 2022

Pertamina’s largest share of 2021 profit from upstream sector

The upstream sector accounted for the largest share of state-owned oil and gas firm PT Pertamina’s (Persero’s) net profit as Indonesian crude prices (ICP) soared in 2021.

Pertamina Hulu Energi Offshore Southeast Sumatra (PHE OSES) well in Seribu Islands waters off North Jakarta’s coast (ANTARA FOTO/M Risyal Hidayat/rwa)

“The overall profit earned is a combination of the six sub-holdings and their subsidiaries, but the largest contribution to the net profit comes from the upstream sector due to the windfall from the increase in ICP prices,” acting vice president of corporate communications at Pertamina, Heppy Wulansari, said in Jakarta on Tuesday.

Reporting its 2021 fiscal year performance to the government, which is a shareholder in the company, Pertamina said it scored a net profit of Rp29.3 trillion.

The majority of this profit was obtained from the upstream sector’s revenue, which increased sharply. Meanwhile, the downstream sector experienced losses due to the increase in crude oil prices and as Pertamina’s fuel prices remained below the market price.

This was an advantage for Pertamina, which has an integrated business from upstream to downstream, which allows cross-subsidies. Thus, it could maintain the balance between profits and public service bonds.

Wulansari said that Pertamina’s financial performance was positive, with almost doubled profit in the 2021 fiscal year.

This profit was consolidated profit from all Pertamina business lines from upstream, processing, and downstream.

As for the downstream sector, especially fuel and LPG marketing and distribution, at this time, the status is still at a loss due to the high cost of fuel production as the largest component is crude oil.

“However, Pertamina really appreciates the government’s full support through the payment of assignment fuel compensation and the addition of energy subsidies in the 2022 State Budget. This is very meaningful to maintain people’s purchasing power and encourage economic recovery,” Wulansari said.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Azis Kurmala, Editor: Suharto (c) ANTARA 2022

Tracing Pertamina’s cost efficiency amid high global oil prices

State-owned oil and gas firm PT Pertamina (Persero) succeeded in achieving cost optimization of US$2.21 billion in 2021 amid high global crude oil prices.

Pertamina. gas station ANTARA/HO – PT. Pertamina Patra Niaga Regional Kalimantan.

“Through this business strategy, in 2021, Pertamina succeeded in cost optimization of US$2.21 billion, obtained from the cost savings program (cost-saving) of US$1.36 billion, cost avoidance of US$356 million, and additional revenue (revenue growth) of around US$495 million,” director of finance of Pertamina, Emma Sri Martini, said in Jakarta on Tuesday.

Martini explained that Pertamina has developed several policies and business strategies from the financial and operational perspective to face the increasing global oil price challenges.

Pertamina is strengthening its financial strategy and operational efforts to improve efficiency across business lines, both holdings and sub-holdings and from upstream processing to downstream, amid increasing crude oil prices.

From a financial perspective, Pertamina has implemented a cost optimization program across the Pertamina Group, including cost savings, cost avoidance, and increased revenue.

Under the savings efforts, Pertamina is also running a hedging program for market risk management. In addition, the company has centralized procurement, prioritized capital expenditures, and is managing assets and liabilities to reduce costs or interest expenses (cost of funds).

“We are trying to optimize all costs and manage the company’s financial aspects, to reduce costs, including prioritizing projects that have fast results,” she said.

Besides financial tightening, Pertamina is also implementing an operational strategy to increase revenue for its six sub-holdings.

In the upstream business, Pertamina has continued to increase oil and gas production and lifting to take advantage of the increasing oil prices. As a result, production has increased by 4 percent and lifting by 3 percent.

The positive performance from upstream operations has been contributed by Rokan Block and foreign assets and consistent efforts to maintain production levels through well-drilling and resource discovery.

In 2021, Pertamina drilled 12 exploration wells and 350 exploitation wells. In the same year, its discovered reserves (2C) reached 486.70 MMBOE (million barrels of oil equivalent) and additional proven reserves (P1) reached 623.47 MMBOE.

In processing and petrochemicals, in 2021, Pertamina implemented a crude and product optimization strategy. This contributed to an increase in product yield value by around 3 percent.

The strategy is related to the selection and economic substitution of crude oil and maximizing high valuable products with high spreads. In 2021, refinery production also increased in response to higher energy demand due to national economic recovery.

Then, in the transportation and logistics sectors, Pertamina optimized the load factor to achieve revenue and cost-efficiency. In the gas business, Pertamina also increased the gas trade volume and transportation, as well as oil transportation volume.

“And after the legal end state, we will also intensify resource sharing, such as sharing facilities and development agreements, especially in upstream sub-holding,” Martini said.

She added that the positive performance downstream was also supported by the government through the recognition of the difference in compensation for HJE JBT Solar and JBKP Pertalite in 2021, which reached around US$4 billion or equivalent to Rp58.6 trillion (excluding tax) and around US$1.7 billion or equivalent to Rp24.1 trillion (excluding tax) in 2018 and 2019.

According to Martini, the government’s support will continue in 2022 through a policy revision that will stipulate Pertalite (RON90) as a Special Assignment Fuel in place of Premium (RON88) and an adjustment to the price of Pertamax.

As Pertamina’s appreciation for this support, several initiatives in the downstream sector have been implemented that simultaneously respond to market changes, such as an expansion of digital transactions, acceleration of Pertashop outlets to capture larger market opportunities in rural areas, and diversion of gas station energy sources to solar panels.

We appreciate the government and the DPR’s decision, which has increased the budget ceiling for subsidies and compensation for 2022 to maintain and protect people’s purchasing power and contain potential inflation. This is a support for Pertamina in providing energy amidst the challenges of high crude oil prices,” Martini said.

With this support, in 2022, Pertamina will make efforts to increase oil and gas production by 17 percent, targeting 79.9 percent Valuable Product Yield, adding around 3 thousand Pertashop fuel outlets, developing digital markets for up to 25 million MyPertamina users, and increasing revenue from non-captive markets in the shipping business to 7.5 percent.

To strengthen its commitment to low-carbon energy, it will produce 7,138 GWh of electricity, which will be supported by a targeted increase in the installed capacity of up to 2.9 GW. Another important strategy will be unlocking the value developed by subsidiaries.

“In the financial sector, we will focus on optimizing costs targeted to reach up to US$600 million. We will continue to communicate with the government to ensure a good decision for the company,” Martini said.Jakarta (ANTARA) – State-owned oil and gas firm PT Pertamina (Persero) succeeded in achieving cost optimization of US$2.21 billion in 2021 amid high global crude oil prices.

“Through this business strategy, in 2021, Pertamina succeeded in cost optimization of US$2.21 billion, obtained from the cost savings program (cost-saving) of US$1.36 billion, cost avoidance of US$356 million, and additional revenue (revenue growth) of around US$495 million,” director of finance of Pertamina, Emma Sri Martini, said in Jakarta on Tuesday.

Martini explained that Pertamina has developed several policies and business strategies from the financial and operational perspective to face the increasing global oil price challenges.

Pertamina is strengthening its financial strategy and operational efforts to improve efficiency across business lines, both holdings and sub-holdings and from upstream processing to downstream, amid increasing crude oil prices.

From a financial perspective, Pertamina has implemented a cost optimization program across the Pertamina Group, including cost savings, cost avoidance, and increased revenue.

Under the savings efforts, Pertamina is also running a hedging program for market risk management. In addition, the company has centralized procurement, prioritized capital expenditures, and is managing assets and liabilities to reduce costs or interest expenses (cost of funds).

“We are trying to optimize all costs and manage the company’s financial aspects, to reduce costs, including prioritizing projects that have fast results,” she said.

Besides financial tightening, Pertamina is also implementing an operational strategy to increase revenue for its six sub-holdings.

In the upstream business, Pertamina has continued to increase oil and gas production and lifting to take advantage of the increasing oil prices. As a result, production has increased by 4 percent and lifting by 3 percent.

The positive performance from upstream operations has been contributed by Rokan Block and foreign assets and consistent efforts to maintain production levels through well-drilling and resource discovery.

In 2021, Pertamina drilled 12 exploration wells and 350 exploitation wells. In the same year, its discovered reserves (2C) reached 486.70 MMBOE (million barrels of oil equivalent) and additional proven reserves (P1) reached 623.47 MMBOE.

In processing and petrochemicals, in 2021, Pertamina implemented a crude and product optimization strategy. This contributed to an increase in product yield value by around 3 percent.

The strategy is related to the selection and economic substitution of crude oil and maximizing high valuable products with high spreads. In 2021, refinery production also increased in response to higher energy demand due to national economic recovery.

Then, in the transportation and logistics sectors, Pertamina optimized the load factor to achieve revenue and cost-efficiency. In the gas business, Pertamina also increased the gas trade volume and transportation, as well as oil transportation volume.

“And after the legal end state, we will also intensify resource sharing, such as sharing facilities and development agreements, especially in upstream sub-holding,” Martini said.

She added that the positive performance downstream was also supported by the government through the recognition of the difference in compensation for HJE JBT Solar and JBKP Pertalite in 2021, which reached around US$4 billion or equivalent to Rp58.6 trillion (excluding tax) and around US$1.7 billion or equivalent to Rp24.1 trillion (excluding tax) in 2018 and 2019.

According to Martini, the government’s support will continue in 2022 through a policy revision that will stipulate Pertalite (RON90) as a Special Assignment Fuel in place of Premium (RON88) and an adjustment to the price of Pertamax.

As Pertamina’s appreciation for this support, several initiatives in the downstream sector have been implemented that simultaneously respond to market changes, such as an expansion of digital transactions, acceleration of Pertashop outlets to capture larger market opportunities in rural areas, and diversion of gas station energy sources to solar panels.

We appreciate the government and the DPR’s decision, which has increased the budget ceiling for subsidies and compensation for 2022 to maintain and protect people’s purchasing power and contain potential inflation. This is a support for Pertamina in providing energy amidst the challenges of high crude oil prices,” Martini said.

With this support, in 2022, Pertamina will make efforts to increase oil and gas production by 17 percent, targeting 79.9 percent Valuable Product Yield, adding around 3 thousand Pertashop fuel outlets, developing digital markets for up to 25 million MyPertamina users, and increasing revenue from non-captive markets in the shipping business to 7.5 percent.

To strengthen its commitment to low-carbon energy, it will produce 7,138 GWh of electricity, which will be supported by a targeted increase in the installed capacity of up to 2.9 GW. Another important strategy will be unlocking the value developed by subsidiaries.

“In the financial sector, we will focus on optimizing costs targeted to reach up to US$600 million. We will continue to communicate with the government to ensure a good decision for the company,” Martini said.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Azis Kurmala, Editor: Suharto (c) ANTARA 2022

Pertamina posts record net profit of Rp29.3 trillion

State-owned oil and gas firm PT Pertamina (Persero) posted a record net profit of Rp29.3 trillion in 2021 following a successful business transformation.

President director of Pertamina, Nicke Widyawati, addressing an online press conference on Pertamina’s participation in the Dubai Expo, which was accessed from Jakarta on March 18 (ANTARA/HO-Pertamina)

The 2021 transformation helped push up its consolidated net profit (audited) to US$2.046 billion or around Rp29.3 trillion, president director of Pertamina, Nicke Widyawati, said in a statement issued in Jakarta on Tuesday.

The figure was almost double compared to the 2020 net profit of Rp15.3 trillion and exceeded the 2021 Corporate Work Plan and Budget (RKAP) target by 154 percent.

In 2021, Pertamina transformed its business by increasing efficiency and production, carrying out energy transition, developing oil and gas infrastructure, and implementing the Refinery Development Master Plan (RDMP) project.

Widyawati said Pertamina’s successful transformation in 2021 was owing to the formation of the oil and gas holding with six sub-holdings: upstream sub-holding, refining and petrochemical sub-holding, commercial and trading sub-holding, gas sub-holding, integrated marine logistics sub-holding, and new and renewable energy sub-holding.

“This transformation is a strategic step to adapt to future business changes, moving more agile and faster, focusing on broader and aggressive business development,” Widyawati said.

Pertamina’s positive financial performance was also demonstrated by earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$9.2 billion.

This shows that Pertamina’s finances are in a healthy (AA) and safe condition amid the disruption and geopolitical challenges affecting the global oil, gas, and energy industry, Widyawati said.

Pertamina’s net profit was the consolidated profit of all subsidiaries from upstream, processing, to downstream.

Most of the profit was contributed by the upstream sector’s revenue, which surged due to rising Indonesian crude prices (ICP). The downstream sector remained under pressure from the high cost of fuel production, the largest component of which is crude oil, Widyawati said.

In 2021, upstream oil and gas production increased from 863 thousand oil barrels equivalent per day (MBOEPD) in 2020 to 897 MBOEPD. Thus, Pertamina contributed more than 60 percent to national oil and gas production.

In addition, with Pertamina’s massive drilling, production at Rokan Block also increased. Various efficiency programs also resulted in cost savings of US$1.4 billion.

Fuel production was also achieved according to the target, so there were no additional imports. Since April 2019, Pertamina is no longer importing solar and Avtur fuel, Widyawati said.

Pertamina has also completed the construction of two giant oil and gas tankers, namely VLCC Pertamina Pride and Pertamina Prime, which will be used for the global market.

Meanwhile, to improve fuel supply reliability in Eastern Indonesia, Pertamina has built and operated 13 new fuel terminals.

Pertamina is also running National Strategic Projects (PSN), including the Balikpapan RDMP Refinery (47 percent completion), Balongan RDMP refinery (68.5 percent completion), Cilacap Green Refinery, Tuban GRR Refinery, as well as other priority projects to strengthen Pertamina’s petrochemicals business such as Polypropylene Balongan, Revamping Aromatic TPPI, and Olefin TPPI, she said.

Integrated digitization from upstream to downstream has been one of the keys to Pertamina’s successful controlling of the production and distribution of fuel, as well as the improvement in the service quality to the community.

Through its Integrated Command Center, all operational activities can be monitored online and in real-time. The use of MyPERTAMINA application for cashless payments is increasing, and currently, it has reached more than 22 million users, Widyawati informed.

With the 2021 new energy development, in addition to the Biosolar B30 production, the Cilacap Refinery has succeeded in producing renewable diesel (100 percent biodiesel), with a capacity of 3 thousand barrels per day.

Contact: Fajriyah Usman, VP Corporate Communications, PT Pertamina (Persero)
M: +62 858 8330 8686, Email: fajriyah.usman@pertamina.com, URL: https://www.pertamina.com
Written by: Azis Kurmala, Editor: Suharto (c) ANTARA 2022