Buy 34 Gold PROPERs, Increase Investor Confidence In Pertamina

Photo: Doc. Antara

JAKARTA - The success of buying 34 Gold PROPERs from the Ministry of Environment and Forestry (KLHK) has had a very positive impact on Pertamina's business. According to the Executive Director of the Institute for Development of Economic and Finance (Indef), Tauhid Ahmad, the achievement of the environmental sector has increased confidence in this energy SOE, especially from international investors.

"With a good environmental title, it can certainly bring international trust, including investors," Tauhid told the media, Saturday, December 30.

According to Tauhid, the many gold PROPER awards Pertamina received do provide economic benefits for the company. Moreover, previously Pertamina also managed to rank first in the world of Environmental, Social and Governance (ESG) for the category of oil and gas companies.

In this case, said Tauhid, international investors will increasingly look at Pertamina to invest. The reason is that investors really care about environmental issues. Thus, in investing, they will also look for companies that are considered to care about the environment.

The opposite is the case. Investors can stay away from a company, even though they are financially profitable. The reason is only because the company is considered not to care about the environment," he said.

Why? Because investing in companies that care about the environment, said Tauhid, is also a way for investors to contribute to improving the environment.

Not only investors. Financial institutions and international banks also have the same paradigm. That's why, he said, currently the green financing model has shifted conventional financing models.

So, explained Tauhid, the number of environmental awards is very profitable for the company. Because besides that, Pertamina is considered more flexible in developing its business. For example, it will be easier to partner with various companies, such as in the Middle East and Europe.

"Yes, it can go anywhere. This means that if he wants expansion, it can be done anywhere easily like in the Middle East," he said. Last week, Pertamina again won an environmental award. In this case, Pertamina and its subsidiaries received 34 gold PROPER awards and 76 Green PROPER awards by the Ministry of Environment and Forestry.

The acceptance of the PROPER award was only three weeks after reaching world number one in the Environmental Risk category of Integrated Oil and Gas sub-industrial, Social, Governance (ESG). As the world's first ESG ranking, Pertamina leads the highest score from 61 world companies, based on rankings from the ESG Rating Institute Sustainalytics.