Indonesia had been offered Russian crude oil at a 30 percent discount. Following that, state-owned oil company Pertamina said it was reviewing the risks of buying Russian oil.
Shell controls 35 percent of the participating interest and the remaining 65 percent is controlled by a Japanese company called Inpex Corporation
"The name is Bandaraya factory, which is planned to be operational next year," said Nestle Indonesia Corporate Affairs Director Sufintri Rahayu
Pertamina, the Only Indonesian Company in Fortune Global 500
TheIndonesia.id - PT Pertamina (Persero) is ranked 223 in the Fortune Global 500 list and is the only Indonesian company as well as the only state-owned company included in the list of the world's top 500 companies. Pertamina President Director Nicke Widyawati said the company was able to increase 64 ranks from previously being at position 287 in the Fortune Global 500 in 2021 to rank 223 in 2022.
"Pertamina's efforts to increase competitiveness are not hindered by the pandemic, even during the company's tough challenges, the company's financial performance will spike sharply in 2021. This is what has led Pertamina to rise in the rankings of the Fortune Global 500 in 2022," she said in a statement quoted by Antara in Jakarta, Tuesday, August 9, 2022.
Widyawati explained that Pertamina has succeeded in increasing the company's revenue and net profit twice compared to the previous year. This is an extraordinary achievement amid global challenges and a pandemic that is not over yet.
She added that Pertamina's position in Fortune Global in the Southeast Asia region is ranked fifth, while 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," she said.
In 2021, Pertamina recorded revenue of US$57.51 billion, an increase compared to the previous year of US$41.47 billion. The company's net profit was recorded at 2.04 billion US dollars or Rp29.3 trillion, an increase of almost double compared to 2020 of 1.05 billion US dollars or Rp15.3 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. The global assessment has placed Pertamina in the 15th rank of 252 world companies in the oil and gas industry and the eighth position in the integrated oil and 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," Widyawati explained.
In 2021, Pertamina has completed the transformation by forming an Oil and Gas Holding with six sub holdings: Upstream Subholding, Refining and Petrochemical Subholding, Commercial and Trading Subholding, Gas Subholding, Integrated Marine Logistics Subholding, and New and Renewable Energy Subholding. Transformation is a strategic step to adapt to future business changes, move more agile and faster, and focus 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 achieve the aspirations of shareholders to pursue the target of becoming the world's 100 leading companies," said Widyawati.
State-owned Enterprise Minister Erick Thohir expressed his appreciation for Pertamina's success in re-entering the Fortune Global 500 with a significant increase in ranking. He considered 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," said Thohir.
He further said that 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 Thohir, Pertamina's slick achievements cannot be separated from the transformation and restructuring steps through the formation of holdings and sub holdings.
"Transformation through holding and sub holdings makes Pertamina's operations more effective and efficient because it focuses on 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," he said.
Thohir hopes that Pertamina's achievements can be an inspiration for other SOEs to speak more on the world stage. He believes that other SOEs can imitate Pertamina's footsteps as long as they can optimally implement the transformation and core values of "Akhlak".
"The better the performance of SOEs, let alone until they are recognized by the world, will certainly have a significant impact on the community. The 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 Thohir.