Successfully Implementing ESG, Pertamina Upstream Subholding Wins Gold Proper

Photo: Doc. Pertamina Hulu Energi

JAKARTA - PT Pertamina Hulu Energi as Pertamina's Upstream Subholding, together with all its affiliates, in 2023 succeeded in winning up to 12 Gold PROPER predicates. PROPER, the Company Performance Rating Assessment Program in Environmental Management, is the highest award for environmental management performance and community empowerment from the Ministry of Environment & Forestry (KLHK) of the Republic of Indonesia.

Apart from that, PHE also received 19 Green PROPER designations as an award for companies that carry out environmental and social management beyond what is required (beyond compliance). The award was handed over directly by the Vice President of the Republic of Indonesia, KH Ma'ruf Amin and accompanied by the Deputy Minister of the Indonesian Ministry of Environment and Forestry, Alue Dohong, at the Bidakara Hotel Jakarta, Wednesday 20 December.

The assessment of PROPER Gold candidates is seen based on the Eco Innovation program which is based on LCA studies and the Social Innovation program which creates changes in the conditions of vulnerable groups with the uniqueness of each Work Area in the Upstream Subholding. All the programs presented are also solutions to environmental and social problems around the company.

By achieving the Gold PROPER title, it further emphasizes Pertamina's Upstream Subholding commitment as a company that is always responsible for managing environmental impacts and making communities around the operational area independent through empowerment programs.

PHE's Director of Development and Production, Awang Lazuardi, said that the success of obtaining the PROPER award was also a concrete manifestation of the company's seriousness in implementing Environmental, Social, Governance (ESG) aspects in all business lines.

"Currently, PHE has succeeded in achieving an environmental, social and governance (ESG) rating of 21.5 or medium risk after going through an assessment process from the international rating agency, Sustainalytics. PHE has succeeded in achieving 7th place out of 313 oil and gas producers globally, and "This PROPER achievement shows PHE's commitment as an Upstream Subholding which always goes beyond compliance in managing an environmentally friendly, socially responsible business and implementing good corporate governance," explained Awang.

The gold PROPER awards were won by PT Badak NGL, PHE Jambi Merang, Pertamina EP Rantau Field, Pertamina EP Pendopo Field, Pertamina EP Limau Field, Pertamina Hulu East Kalimantan - Northern Operation Area (PHKT DOBU), Pertamina Hulu East Kalimantan - Part Operation Area South (PHKT DOBS), Pertamina EP Sangasanga Field, Pertamina EP Sukowati Field, Pertamina Hulu Energi West Madura Offshore (PHE WMO), Pertamina EP Donggi Matindok, and JOB Tomori.

Meanwhile, the awards for the Green PROPER title were won by Pertamina EP Pangkalan Susu Field, Pertamina EP Jambi Field, Pertamina EP Prabumulih Field, Pertamina EP Adera Field, PHE Ogan Komering, PHE Kampar, PHE NSO, Pertamina EP Ramba Field, Pertamina EP Subang Field, Pertamina EP Tambun Field, Pertamina EP Jatibarang Field, PHE ONWJ, Pertamina Hulu Sanga-Sanga (PHSS), Pertamina EP Tarakan Field, Pertamina EP Sangatta Semberah Field, Pertamina EP Sangatta Field, Pertamina EP Bunyu Field, Pertamina EP Tanjung Field Field, and Pertamina EP Papua Field.

Awang further explained that PHE and all its entities are committed to maintaining the continuity of operational aspects, environmental aspects, and social aspects.

"For us, PROPER has become an indicator of how committed environmental and social management around our area operates. We also express our appreciation to all relevant stakeholders and we will continue to use this achievement as motivation to continue to improve sustainable programs through various innovations," concluded Awang.

In its implementation, the Social and Environmental Responsibility Program (TJSL) carried out by PHE aims to develop in each operational area based on social mapping, regional and community potential, implementing Environmental, Social, Governance (ESG) and supporting Sustainable Development Goals (SDG's). These programs are implemented with the specific aim of community development in that location.

PROPER is a program launched by the Ministry of Environment and Forestry to improve the company's environmental management performance in accordance with what has been stipulated in statutory regulations. Implemented annually as regulated in Minister of Environment and Forestry Regulation No. 1 of 2021 and has become a platform for the business world to carry out sustainable business practices by implementing green economic principles.

PHE also invests in managing upstream oil and gas operations and businesses in accordance with Environmental, Social and Governance (ESG) principles. PHE has been registered with the United Nations Global Compact (UNGC) as a member since June 2022. PHE is committed to the UNGC's Ten Universal Principles in its strategy and operations, as part of implementing ESG aspects.

Supporting the Governance aspect, PHE is also always committed to Zero Tolerance on Bribery by ensuring fraud prevention is carried out and ensuring the company is free from bribery. One of them is the implementation of an Anti-Bribery Management System (SMAP) which is standardized to ISO 37001:2016.

PHE continues to develop professional management of operations at home and abroad to achieve the achievement of becoming a world-class oil and gas company that is environmentally friendly, socially responsible and good governance.