Some of the benefits that can be achieved with the restructuring of Pertamina are simplification of the investment approval chain so that investment decisions can be accelerated while still paying attention to governance. Implementation of Restructuring simplifies investment decision-making from 9 to 2 steps where Holding, Sub Holding, and Subsidiaries are jointly involved from the beginning of the investment proposal.
Integrated business development to maximize value creation and increase synergy from upstream-downstream – supporting businesses. In 2021 the synergy will increase to US$ 3.57 billion compared to US$ 2.59 billion in 2020.
Business portfolio management, partnerships, and unlock value to optimize the value of the Pertamina Group, which were previously carried out by each directorate independently to become integrated for the entire Pertamina Group. The efficiency of Capex value through investment monitoring (post-mortem). Project monitoring through post-mortem indicates the efficiency of the Capex value of Pertamina’s investment projects is up to 15%.
Efficiency is obtained through the optimization of drilling activities and value engineering in Pertamina Group Project investment projects. Corporate Strategy formulation and company long-term targets based on operational and financial conditions, as well as national and international macroeconomic conditions and submitted periodically to the relevant Sub Holdings through the Annual Pertamina Energy Outlook, quarterly Energy Bulletin, Forecasting modeling Commercialization of Research, Innovation, and New Venture Products together with Sub Holding or related Subsidiaries: Red and White Catalyst Products, EV Battery, DME, Biofuel.
Meanwhile, the realization of investment achievement in 2021 for physical progress of 98.3% and finance progress of 89.4% became the highest achievement in the last 4 years (USD 9.1 billion). In 2022, the number of projects will increase to 2,717 projects from 2021 as many as 2,210 projects.
Meanwhile, Pertamina Group’s infrastructure synergy is carried out through PLN gasification between Subholding Integrated Marine Logistics and Subholding Gas; Synergy for the Tuban GRR Development Infrastructure; Utilization of the Bontang LNG Refinery Sarfas as a Terminal for LPG Hub and LNG Hub; Synergy for Infrastructure Development for RDMP RU V and TBBM Tg. Batu; Synergy of JTB Gas Field Development Infrastructure and Gresik-Semarang Gas Pipeline.
Downstream optimization or integration of gas products is carried out in addition to achieving the best margin for Pertamina Group, also to ensure the smooth supply of gas to consumers and prepare alternative energy supply substitutions from other Sub Holdings if there is a gas supply disruption.
According to reliable sources, Pertamina has prepared a systematic restructuring process through a road map designed to maintain business continuity, namely first, the development of business capabilities that were previously mixed between one business and another to become more focused through the center of excellence in each sub-holding. Second, the previously centralized business decision-making process has become decentralized so that decision-making is faster by empowering sub-holding. Third, the organization focuses on business lines so that organizational capabilities are stronger to carry out the company’s strategic programs. Fourth, Capability Development & Career Structure Human Capital was previously linear in a function or directorate to become more diverse (managerial, expert/specialist track) between holding sub-holdings. Fifth, the holding has changed from holding operations into a function of policy direction and strategic planning, integrator, and business development of the Pertamina Group where operational activities will be carried out in Subholding and Subsidiaries. Sixth, the organization changed from being structural and multi-layered to becoming more lean, agile, and efficient through delayering and implementation of a functional organization (team/project-based). Seventh, optimization of a span of control by 91% from managing 127 subsidiaries to 12 subsidiaries.
“The performance of the sub holding so far has shown results, namely that it has completed operational performances such as 90 Development wells; 2 Exploration well; 94 Workovers and 4737 Well Services,” said the source.
To achieve the target of New Renewable Energy in Energi Mix Indonesia, Pertamina has developed several projects and a green energy portfolio first, capacity enhancement geothermal from 672 MW in 2020 to 1128 MW in 2026. Second, Pertamina has started the initiatives for utilization of green hydrogen in Indonesia which will use electricity from Pertamina’s geothermal field with a total potential of 8.600-kilograms of hydrogen per day. Third, Participate in Indonesia Battery Company Joint Venture with battery production of 140 GWh in 2029. Develop EV battery ecosystem including swapping & charging business. Fourth, the Methanol Plant construction for gasification with 1000 ktpa capacity. Plan to be on stream in 2025 and DME with capacity 5200 KTPA on stream 2025. Sixth, the construction green refinery with a capacity of 6 – 100 KTPA in 2025. Seventh, Generator capacity enhancement in 2026, consisting of Biomass/Biogas 153 MW, Bio blending Gasoil and gasoline, Biocrude from algae, and ethanol 1,000 KTPA on stream in 2025. Eight, Pertamina plans to apply Circular Carbon Economy in several areas: Recycle: Biomass, Biogas Reduce; Solar PV, EV, LNG Bunkering Reuse: CO2 for EOR and methanol. Nine, Generator capacity enhancement in 2020 – 2026: Solar PV, wind, and hydro.
Pertamina supports the development of the battery business in Indonesia through various initiatives to build an Electric Vehicle (EV) ecosystem, including supporting infrastructure (charging stations and swapping stations). Moreover, The EV battery business is one of Pertamina’s 8 energy transition initiatives.
