Integrated ESG Implementation, Pertamina Receives 23 Gold PROPER 2021

Jakarta, December 28, 2021 – PT Pertamina (Persero) has received 23 awards for the 2021 Gold Company Performance Rating Program in Environmental Management (Proper) organized by the Ministry of Environment and Forestry (KLHK). This number increased sharply compared to 2020 with 16 Gold Proper.

PROPER is one of the Indonesian Government's policies to improve companies' environmental management performance following the laws and regulations. PROPER is also a manifestation of transparency and democratization in environmental management. It is also the Indonesian Government's efforts to apply the principles of good governance (transparency, justice, accountability, and community involvement) in environmental management. The assessment mechanism and criteria are contained in the MoEF Ministerial Regulation Number 1 of 2021 concerning the Company Performance Rating Program in Environmental Management.

Proper Gold 2021 within the Pertamina Group was achieved by all business sectors, starting from upstream, processing (midstream), and downstream.

In the upstream sector, Proper Emas was won by PT Pertamina EP Asset 3 Field Subang, Asset 5 Field Sangasanga, Field 5 Tarakan, JOB Pertamina – Medco E&P Tomori, PT Pertamina Geothermal Energy Area Kamojang, PT Pertamina Hulu Energi Jambi Merang, PT Pertamina Hulu Kalimantan Timur, PT Pertamina Hulu Mahakam BSP Field and South Processing Unit. A total of 9 Gold Proper were won in the upstream sector. 

In the production sector, Pertamina receives 2 Proper Gold. It was won by RU II Sei Pakning Refinery and RU VII Kasim Sorong Refinery.

In the downstream sector, Pertamina won 11 Gold Proper. The 12 Proper Gold were won by Fuel Terminal Cikampek, Fuel Terminal Bandung Group, Fuel Terminal Boyolali, Fuel Terminal Maros, Fuel Terminal Rewulu, Fuel Terminal Tuban, Integrated Terminal Semarang, Integrated Terminal Semarang Surabaya, DPPU Ngurah Rai Bali, DPPU Sepinggan Balikpapan and DPPU Hasanuddin Makassar and PT Badak LNG. 

The Proper award was attended and witnessed by the Vice President of the Republic of Indonesia, KH Ma'ruf Amin, and the Indonesian Minister of Environment and Forestry, Siti Nurbaya Bakar. The award was received directly by President Director of Pertamina Nicke Widyawati at the Proper Environmental Award event in Jakarta on Monday (27/12).

In the event, the Vice President of the Republic of Indonesia, KH Ma'ruf Amin, said that for 24 years, proper has developed into a platform for the business world to carry out sustainable business practices by applying the principles of the green economy. In particular, the Vice President welcomed the criteria for sensitivity and responsiveness to disasters as a response to the Covid 19 pandemic as new criteria in the community empowerment since 2020. The Vice President also hopes for the active role of the business community in overcoming climate change and sustainable environmental management, one of which is so that industry players participate in disasters. 

"Indonesia's 2030 target is to reduce the adverse effects of climate change. Indonesia is highly committed to reducing greenhouse gas emissions and supporting Indonesia's target of achieving net zero emissions by 2060," he said. 

Minister of Environment and Forestry (LHK), Siti Nurbaya Bakar, said businesses had initiated support for reducing greenhouse gas emissions, complying with President Jokowi's affirmation at COP 26 to reduce carbon emissions by 2030. 

“In climate change efforts, businesses had noted an important role, such as through involvement in the development and management of green open space based on ecosystem replication. In 2021, green open areas reach 286,469 hectares spread across 27 provinces," said Siti Nurbaya.

On the same occasion, President Director of Pertamina, Nicke Widyawati, explained that Pertamina positively welcomed the Proper activities organized by the KLHK. With Proper, Pertamina's environmental management performance assessment is more measurable, objective, and accountable.

According to her, the PROPER award parallels with Pertamina's commitment to implement integrated ESG (Environmental, Social & Governance) from upstream to downstream to support a sustainable business. The increase in Pertamina's Gold Proper achievement in 2021 shows Pertamina's seriousness in ESG implementation.

Pertamina has succeeded in increasing the ESG Risk Rating by 28.1 and is considered at Medium risk. With this position, Pertamina occupies the 15th position out of 252 companies in the Oil & Gas industry and the 8th position in the integrated Oil & Gas sub-industry. Pertamina is in the same cluster (Medium Risk) with global companies such as Repsol, ENI, PTT Thailand, and TotalEnergies. This position was recorded better than BP, Exxon, and Chevron. 

"Pertamina will continue to consistently implement the ESG aspect into the company's business strategy by continuing to pay attention to Proper performance following the rules set by the Ministry of Environment and Forestry," added Nicke.

In implementing ESG, continued Nicke, Pertamina has set 10 sustainability focuses that will guide the implementation of ESG in the future and formed a Sustainability Committee to ensure that ESG aspects are implemented properly. Pertamina has also launched policies related to ESG such as the Sustainability Policy, Human Rights Policy, Respective Workplace Policy, and others.

Regarding efforts to overcome climate change, Pertamina has reduced carbon emissions as a result of energy production and consumption, as well as protecting ecosystems and biodiversity in each of its operational areas. 

Pertamina has also succeeded in reducing greenhouse gas (GHG) emissions by 27 percent and will pursue the GHG reduction target to 30 percent by 2030.

The increase in gold proper also shows Pertamina Group's commitment to not only comply but to achieve beyond compliance with the regulations and legal rules set by the Government. In the last 4 years, Pertamina's Proper achievement has continued to increase. In 2017, Pertamina won 11 out of 19 Gold Proper, Pertamina received 14 out of 20 Gold Proper in 2018. In 2019, Pertamina won 13 out of 26 Gold Proper, and in 2020 it won 16 out of 32 Gold Proper. Now, in 2021, still, amid the Covid-19 pandemic, Pertamina won 23 of 47 Gold Proper.

"The increase in Gold Proper achieved by Pertamina shows Pertamina's superior performance as a world-class energy company that always prioritizes environmentally friendly business operations. Congratulations to colleagues from the unit who received the Gold Proper award. It is a motivation for others, with a sustainable program that is much better and in line with Pertamina's commitment in Indonesia. Once again, congratulations and very proud to be a big Pertamina family," said Nicke.**