JAKARTA - In the midst of the challenges of soaring crude oil prices, PT Pertamina (Persero) is strengthening its financial strategy and operational efforts to improve efficiency in all business lines, both holding and subholding, from upstream, processing to downstream.
From this business strategy, during 2021 Pertamina succeeded in optimizing costs of US$ 2.21 billion, which was obtained from the cost savings program (Cost Saving) of US$1.36 billion, Cost Avoidance of US$ 356 million and additional Revenue (Revenue Growth) around US$ 495 million.
From a financial perspective, Pertamina implements a cost optimization program throughout the Pertamina Group which includes cost savings, cost avoidance, and increased revenue. Parallel to the austerity efforts, Pertamina also runs a hedging program for market risk management. In addition, the company also centralizes procurement, prioritizes capital expenditures and manages assets and liabilities to reduce costs or interest expenses (cost of funds).
Apart from tightening finances, according to Petamina Finance Director Emma Sri Martini Emma, ​​Pertamina is also implementing an operational strategy in order to increase revenue, which is mostly run by its subsidiaries, namely six subholdings. In the upstream business, Pertamina continues to increase oil and gas production and lifting to take advantage of the momentum of rising oil prices. As a result, production rose 4% and lifting 3%.
In 2022 Pertamina will develop a main strategy through efforts to encourage oil and gas production to increase to 17%, targeting a Valuable Product Yield of 79.9%, adding fuel outlets of around 3,000 Pertashops, developing digital markets for up to 25 million MyPertamina users, and increasing the portion of revenue from non-captive market in shipping business up to 7.5%. To strengthen its commitment to low-carbon energy, it will produce 7,138 GWh of electricity and is supported by a targeted increase in installed capacity of up to 2.9 GW. (LM)