Pertamina Becomes The Only Indonesian Company In The Fortune Global 500, Erick Thohir: Proof That SOEs Can Compete Internationally

SOE Minister Erick Thohir together with Pertamina Director Nicke Widyawati. (Photo: Doc. Antara)

JAKARTA - PT Pertamina (Persero) is the only Indonesian company as well as the only state-owned company that is included in the 2022 Fortune Global 500 list. Pertamina is ranked 223, up 64 places compared to 2021 which was in position 287.

In 2022, the Fortune Global 500 places 30 world oil and gas companies in the Petroleum Refining category. Pertamina is at number 21 above Idemitsu and Repsol.

The Minister of State-Owned Enterprises (BUMN), Erick Thohir, appreciated Pertamina's success in re-entering the Fortune Global 500 with a significant increase in ranking.

Furthermore, Erick assessed that the increase in Pertamina's rating provided evidence that SOEs could compete with global companies.

"I highly appreciate the directors, commissioners, and all Pertamina personnel who work hard in increasing the company's competitiveness in the international arena," Erick said in Jakarta, Tuesday, August 9.

Erick said, Pertamina's success showed that SOEs were not only able to survive in the face of a pandemic, but also could improve performance with various innovations.

According to Erick, Pertamina's slick achievements cannot be separated from the transformation and restructuring steps through the formation of holdings and subholdings.

"Transformation through holding and subholding makes Pertamina's operations more effective and efficient because it focuses on the core business. This is in line with our target that Pertamina must become a Global Energy Champion company and have a valuation of 100 billion US dollars," said Erick.

Erick hopes that Pertamina's achievements can be an inspiration for other SOEs to be able to speak more on the world stage.

Furthermore, Erick believes that other SOEs can imitate Pertamina's footsteps as long as they are able to optimally implement the transformation and core values, Morals.

"The better the performance of SOEs, let alone until they are recognized by the world, will certainly have a significant impact on the community. Positive performance will certainly provide a large space for SOEs to contribute more in increasing economic growth, maintaining market balance, as well as populist economic programs," said Erick.

In line with Erick, President Director of PT Pertamina (Persero), Nicke Widyawati said Pertamina's efforts to improve competitiveness were not hindered by the pandemic, even in the midst of the company's tough challenges, the company's financial performance soared sharply in 2021.

According to Nicke, this has led Pertamina to increase its ranking in the Fortune Global 500 in 2022.

"Pertamina has succeeded in increasing the company's revenue and net profit twice compared to the previous year. An extraordinary achievement in the midst of global challenges and the pandemic that has not ended," said Nicke.

Nicke said, Pertamina's position in Fortune Global in the Southeast Asia region is ranked 5th and in Asia, Pertamina is ranked 105th out of 227 companies.

"Pertamina is also ranked 12th out of 24 companies led by Female CEOs and the only one in the Petroleum Refining category led by Female CEOs," he added.

Pertamina, said Nicke, recorded revenue in 2021 of US$57.51 billion, an increase from last year's US$41.47 billion. Pertamina's net profit of 2.045 billion US dollars or Rp. 29.3 trillion, almost doubled compared to 2020 of 1.05 billion US dollars or Rp. 15.3 trillion.

Not only perched on the global ranking on the Fortune 500, in September 2021, Pertamina also received an ESG Risk Rating of 28.1 or at Medium Risk. This global assessment has placed Pertamina in the 15th rank of 252 world companies in the Oil & Gas industry and the 8th position in the integrated Oil & Gas sub-industry.

"This is a global acknowledgment of Pertamina's commitment and efforts to lead the energy transition, decarbonization to support Indonesia's net zero emissions in 2060 and the achievement of the potential of renewable resources in Indonesia in the context of sustainable growth," he said.

In 2021, Pertamina has successfully completed the transformation by forming an Oil and Gas Holding with 6 Subholdings, namely Subholding Upstream, Subholding Refining and Petrochemical, Subholding Commercial and Trading, Subholding Gas, Subholding Integrated Marine Logistics and Subholding New and Renewable Energy.

Nicke emphasized that transformation is a strategic step in adapting to future business changes, moving more agile and faster, and focusing on broader and aggressive business development.

"The transformation will continue to push Pertamina to become a world-class energy company. With the support of all stakeholders, Pertamina will realize the aspirations of shareholders to realize the target of becoming 100 world-leading companies," said Nicke.