Supporting Energy Transition, Pertamina Implements ESG and Business Model Innovation

JAKARTA,Indonesia,Dec. 29,2021 -- PT Pertamina (Persero) implements Environmental,Social & Governance (ESG) aspects and business model innovations to support the energy transition process,as well as supporting Indonesia's net-zero emissions target achievement by 2060.

Pertamina continues to innovate business models to support the energy transition in Indonesia including the development of public electric vehicle battery exchange stations

Mia Krishna Anggraini,Vice President of New Ventures at PT Pertamina (Persero),said business model innovation could be the key to success and accelerate new business growth in the face of energy transition during the Pertamina Energy Webinar in Jakarta on Tuesday (7/12/2021).

"Business model innovation can be carried out through an incubation process where the SPPU Directorate's New Ventures supports the development of Pertamina Group's new business by providing the required incubation ecosystem," she said.

President Director of PT Pertamina Patra Niaga,Alfian Nasution,said his party innovates business models to support the energy transition process. One of these innovations is to focus on the development of 391 units of public electric vehicle battery exchange stations (SPBKLU) and public electric vehicle charging stations (SPKLU).

"Pertamina initiates the SPKLU business through a partnership scheme and is integrated with the MyPertamina application," he said.

According to him,Pertamina Patra Niaga is targeting the construction of 513 SPKLU/SPBKLU units by 2024 as part of the energy transition strategy. The 513 units consist of 122 SPKLU units and 391 SPBKLU units. However,Alfian said that support or incentives from the government were needed to overcome the economic challenges of the electric vehicle (EV) business.

Alfian said that the support needed was pro-EV incentives and regulations,including free or discounted installation of new customer IDs,bulk tariffs for SPKLU/SPBKLU,free subscriptions for a minimum of two years,and incentives for EV users to reduce total cost ownership (TCO) EV with benchmarks in Taiwan. Furthermore,the necessary technology-related support includes the need for flexibility in SPKLU technology (at least one socket for SPKLU) and standardization of two-wheeled KBLBB batteries. Regarding licensing,the management of a one-stop electric power support service business license (IUJPTL) at Pertamina for Pertamina petrol station partners (DODO partners) with standards still following the applicable rules.

Another speaker in the two-webinar session,President Director of PT Pertamina Power Indonesia as Subholding Power and New Renewable Energy Pertamina,Dannif Danusaputro,said the battery business and electric vehicles are the businesses of the future.

"PNRE's vision is to lead Pertamina's energy transition through the development of carbon solutions,new renewable energy,and building future businesses in the energy sector,his party is targeting the construction of 10,000 MW consisting of low-carbon solutions with a target of 4,000 MW through the gas generation and decarbonization. In addition,5,000 MW of NRE generators from geothermal,solar,hydro,biomass and biogas,wind and tidal,and waste; and up to 1,000 MW in future businesses such as batteries and electric vehicles,hydrogen,carbon markets,and green industrial complexes.

Meanwhile,Erry Widiastono,President Director of PT Pertamina International Shipping (PIS),said the restructuring had strengthened the company's business value chain,allowing it to become an end-to-end marine logistics provider. It covers shipping to marine services,port operations and services,port asset ownership,marine logistics storage,and other support services.

"Restructuring allows PIS to focus on developing its business,increasing operational efficiency and company value," he said.

PIS had a higher financial and operational performance in 2021 than in 2020,with a 27 percent increase in net income and a 142.6 percent improvement in net income margin as a result of the increased business scale. In the future,PIS will increase its capacity and aspire to become the ASEAN Leading Integrated Marine Logistics Company. PIS has formulated a roadmap toward a green integrated marine logistics company to support Pertamina's efforts in carbon footprint reduction.

The 2021 Pertamina Energy Webinar,with the theme "Energizing Your Future," was held to promote shared knowledge about technology and business innovation and stimulate strategic discussions. Pertamina Energy Outlook 2021 contains Pertamina's view of the future of the energy sector,both in terms of production and consumption.