Pertamina Successfully Press Operational Fees Rp6 Trillion

Pertamina President Director Nicke Widyawati (Photo: Doc. ANTARA)

JAKARTA - In the midst of an increase in world oil prices which has an impact on increasing fuel production costs, PT Pertamina (Persero) recorded an operational cost savings of around Rp. 6 trillion.

President Director of PT Pertamina (Persero), Nicke Widyawati, said that this success could not be separated from the strategic cost-saving steps taken by the Pertamina Group since the beginning of the year.

Nicke further explained that energy companies are faced with a difficult situation amid the disruption of the global energy supply chain as a result of the Russian and Ukrainian conflicts, where global trade mobility is heading for post-pandemic recovery with limited supply that led to an energy crisis.

The Government's policy in maintaining people's purchasing power through fuel subsidies is the right step, so as to accelerate economic recovery.

One of these is reflected in the increase in fuel consumption for community mobility and business activities.

However, on the other hand, the increase in fuel consumption has caused an increase in the government's subsidy burden.

"We understand the weight of the government's subsidy burden, for that Pertamina conducts various cost savings programs in order to help reduce the burden of government subsidies," said Nicke in an official statement, August 30.

The largest portion in fuel production is the cost of purchasing crude oil, which reaches 92 percent of the Main Cost of Production.

The upgrading investment in the Pertamina Oil Refinery, which has been run in the last 4 years, has succeeded in increasing the flexibility of crude oil.

This means that if so far the Pertamina Refinery can only process certain crude oils that are expensive, then starting last year it will be able to process crude oil with higher sulfur content with more sources and cheaper prices.

This is Pertamina's strategic step which has significantly reduced fuel production costs.

In addition, energy efficiency in all operational areas from upstream to downstream also provides significant cost savings, in addition to of course contributing to reducing carbon emissions.

"The significant post-restructuring breakthrough to achieve Pertamina Group efficiency is the centralization of the procurement of goods and services, as well as the integration and optimization of all assets from upstream to downstream," he said.

Not only saving costs, but even Pertamina Group has also succeeded in increasing revenue by exporting high-value products, such as HVO (D100 based on palm oil) and Low Sulfur Fuel Oil.

The world's demand for low carbon products continues to increase. With the upgrading of the refinery that has been carried out, Pertamina is currently able to produce these products, so as to successfully capture this highly prospective opportunity.

"For us, cost savings is not just a cutting cost, but changes the operating model and improves the business process, so that all programs continue to be implemented and all targets are achieved, but at a lower cost. Pertamina will continue to make various cost-saving efforts, which are at the same time able to reduce carbon emissions, so as to support the energy transition of Pertamina and Indonesia," concluded Nicke.