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Pertamina Outlook in Energy Industry
and Sustainability
Investor Day Summit 2021 – July 14, 2021
Nicke Widyawati – CEO & President Director PT. Pertamina (Persero)
2
Journey into Indonesia Energy Transition
Indonesia Energy Demand by SectorMillion Terra Joule
0
1
2
3
4
5
6
7
8
9
10
11
20
25
20
19
20
26
20
32
20
20
20
39
20
21
20
22
20
23
20
24
20
27
20
28
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29
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30
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34
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35
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38
20
40
+2.1%
CommercialIndustry
Transportation
Household
Others
Petrochemical, Fertilizer, Methanol
Source: Pertamina Analysis
Natural Gas
19,6%
Oil
37,3%
NRE
Coal
9,2%
33,9%
Coal
18,0%
NRE Natural Gas
Oil25,0%
22,0%
34,0%
2019
2040
• Pertamina Energy Portfolio will be
aligned with Energy Mix Target in
Indonesia National Energy Grand
Design in 2025. Most of energy will
be supplied fossil fuel with
aggressively New and Renewable
Energy (NRE) growth
• Projection in Indonesia energy demand
in Indonesia will be grow at 2.1%
per annum until 2035. Reduced
demand expected in 2020 and 2021
due to covid-19 pandemic.
• Energy mixed prospective to achieve
target 29% lower emission in 2030
from National Energy Demand 7
Million Tera Joule
Indonesia Energy Mixed TargetPercentage
Key Points
3
Pertamina Energy ProductionMillion Tera Joule
5
2
0
1
7
4
3
6
7
2020 20262021 2022 2023 2024 2025 2027 2028 2029 2030
5,3
Refined Products - exclude LPG Gas
Refined Products - LPG NRE
1,2
2030
7,0
0,4
2,4
3,1
Commercial
Industry
Transportation
Household
National Energy
Demand
71%
Pertamina’s
Energy
Supply
Pertamina Energy Mix
Source : Pertamina
Pertamina Energy Mix
Pertamina builds an integrated oil & gas supply chain to supply domestic demand and actively builds an NRE portfolio
using domestic resources.
In 2030, Pertamina will supplies ~71% of Indonesia's
total energy demand.
Align with the energy transition,
Pertamina adapt by building energy
supply for Indonesia in the 2020-2030
period by:
• Reducing the refined product & LPG
mix from 86% to 64%
• Increasing the gas mix from 13% to
19% and NRE from 1% to 17 %
83%
3%13%1%
61%
3%19%
17%
2019 2040
4
Pertamina Investment Strategy (2020 – 2024)
Pertamina allocates CAPEX of 9% for New and Renewable Energy which is
higher than the average IOC of 4.3%.
Pertamina's commitment is in line with efforts to use domestic resources to
supply domestic energy towards green development and decarbonization
• NRE will grow 4% per annum meanwhile
energy conventional will decrease 4% per
annum
• Oil and gas will be projected grow until
2035
Industry Capex
Profile
2018 - 2035
Oil & Gas Low – Carbon
Investment Strategies2015 - 2020
Benchmark
Upstream
~$64 Billion
~$45Bn: Merger & Acquisition*~$14Bn: Business Development~$5Bn: Non Business Development
Downstream
~$20 Billion
~$18Bn: New & Revamping Refinery & Petchem~$2Bn: Commercial & Distribution Infrastructure
Gas, Power & NRE
~$8 Billion
~$4Bn: Transportation & Distribution Pipeline~$0,3Bn: Liquefaction & Regasification unit~$3Bn: Integrated Power Plant~$0,7Bn: Other
• 53 billion low-carbon investment by the oil
and gas sector over 2015-2020
• 4.3% share of total sector capex spent on
low-carbon investment in 2020
• 7 Companies that spent more than 5% of
total capex on low carbon technology over
2015-2020 Source : BNEF
*subject to optimization into Petrochemical, Power & NRE
5
Opportunities Pertamina New & Renewables Energy Portfolio
Capacity enhancement from 672 MW in 2020 to
1128 MW in 2026.
Geothermal
Pertamina has started the initiatives for utilization of
green hydrogen in Indonesia which will use electricity
from Pertamina’s geothermal field with total potential
8.600 kilo gram hydrogen per day.
Hydrogen
Participate in Indonesia Battery Company Joint
Venture with battery production 140 GWh in 2029.
Develop EV battery ecosystem including swapping &
charging business
EV Battery & Energy Storage System
Methanol Plant construction for gasification with
1000 ktpa capacity. Plan to on stream in 2025.
Gasification
Construction Green refinery with capacity 6 –
100 KTPA in 2025
Green Refinery
Pertamina plan to apply Circular Carbon
Economy in several area:
Recycle : Biomass, Biogas
Reduce : Solar PV, EV, LNG Bunkering
Reuse : CO2 for EOR and methanol
Circular Carbon Economy
• DME with capacity 5200 KTPA on stream 2025
• Generator capacity enhancement in 2020 – 2026:
• Solar PV 4 – 910 MW
• Wind 225 MW (2024)
• Hydro 200 – 400 MW
New Renewable Energy
Generator capacity enhancement in 2026, consist of:
Biomass/Biogas 153 MW, Bio blending Gasoil &
gasoline, Biocrude from algae and ethanol 1,000
KTPA on stream in 2025
Bio Energy
To Anticipate NRE growth in Indonesia energy mix, Pertamina develop several projects and activities to expand green
energy portfolio
1
2
3
4
5
6
7
8
6
Support in Geothermal Business Development at Pertamina
OWN OPERATION
DEVELOPMENT
EXPLORATION
JOC
The main problem of geothermal energy development in
Indonesia is the purchase price of electricity which is
considered low and below the economic value with a high
investment value. The policies and support needed are:
• Ratification of the Presidential Regulation concerning the
Purchase of EBT Electricity by PT PLN (Persero)
• Ratification of the New and Renewable Energy Draft (RUU
EBT)
672 MWINSTALLED
CAPACITY
Pertamina Geothermal Eenergy manages 15 Geothermal
Working Areas.
Total installed capacity 672 MW Self Operated and 1,205
MW Joint Operation Contract
7
Support in Hydrogen Development
SPPU, PT Pertamina (Persero) - Update Project Investasi Pertamina
2.5
Mt/day
Estimated National Hydrogen
Consumption in 2020
Progress• Pertamina is in the stage of reviewing the Pertamina's
Green and Blue Hydrogen roadmap
• Currently, the construction of a Green Hydrogen Plant
with a capacity of 22-100 kg/day is being planned from
the Ulubelu Geothermal Field with a Commerciao
Operation Date target in 2022.
Support Needed• Government upport regarding the hydrogen offtaker
market
• Acceleration of environmental permits and other
permits related to the green Hydrogen pilot plant.
• Ease of taxation and funding facilities
US$
40 Bn
National/Domestic Hydrogen
Market Potential
Hydrogen is a non-carbon emission energy source. Its
application can be used as an energy source such as
the use of feeding on polymer plants in refineries,
feeding on the chemical fertilizer industry, and vehicle
fuel cells.
D100 Product Specification Quality Test
results D100
D100 Production Trial
Dumai Refinery
Cap. 1,000 Bbl/day
Feed: RBDPO
D100 Production Trial
Cilacap Refinery
Cap. 800 Bbl/day
Feed: RBDPO
Revamping
Cilacap Phase-1
Cap. 3,000 Bbl/day
Feed: RBDPO
Ready to Produce D100
Cilacap Refinery
Cap. 800 Bbl/day
Feed: RBDPO
Revamping
Cilacap Phase-2
Cap. 6,000 Bbl/day
Feed: Multi-Feed
Support in Biorefinery and Biodiesel Development
Jul2020
Apr 2021
Dumai Cilacap
Cetane Number 92 94
Density 788 786
Viscosity 3.55 3.37
Sulphur 42 6
Flash Point 71 140
Water Content 96 63
Summary
D100 Biodiesel Production TrialPertamina has carried out a trial production of D100
at the Dumai and Cilacap refineries, with the result that
the D100 product specification in Cilacap complies
with International Benchmarks (ENI, Neste, EN),
while Dumai needs improvements in Sulphur and Visual
Market ExportAccording to the supply-demand analysis and
economic projections, the HVO D100 product will be
focused to the export market demand
Export Market Readiness ISCC certification for D100 is in progress. Furthermore,
the infrastructure of the Cilacap Refinery is ready for
the production of 800 Bbl/day D100
Production Capacity ImprovementThe production capacity in Cilacap will be increased
gradually, through:
1. Revamping Phase 1: Cap. 3,000 Bbl/day
2. Revamping Phase 2: Cap. 6,000 Bbl/day
1
2
3
4
Government SupportSupport for the certainty of supply and feedstock
prices, especially those related to the management
policy of Used Cooking Oil/UCO as an alternative
feed other than RBDPO/CPO, because UCO feeds
are more flexible in the export market*
Nov 2021
ISCC Certification Target
Completion for export market
penetration
RBDPO: Refined Bleached Deodorized Palm Oil CPO: Crude Palm Oil UCO: Used Cooking Oil / Minyak Jelantah
*Currently, a study of Used Cooking Oil / UCO is being carried out together with the Gadjah Mada University, as well as sourcing from restaurant outlets that manage UCO.8
Des 2021
Green Refinery
Plaju
Cap. 20,000 Bbl/day
Feed: CPO
Stakeholders discussion
It is carried out if there is
certainty of feed (through
cooperation with PTPN)
along with certainty of
domestic and export
demand
Feb 2021
Q42023
9
Support in DME (Dimethyl Eter) Development
SPPU, PT Pertamina (Persero) - Update Project Investasi Pertamina
5200
KTPA
DME development is expected to be a solution to
reduce national LPG imports
Pertamina has coordinated with government institutions to obtain
supports as follows:
Pertamina’s DME
Portfolio Target
in 2025
Progress• Pertamina has agreed to
cooperate with 6 Coal
Suppliers in DME Development
• Pertamina has signed
Cooperation Agreement and
Processing Service
Agreement for the Tanjung
Enim DME Project with PT
Bukit Asam and Air Product.
Government of the Republic of Indonesia• Assignment to Pertamina for :
a. Participate in coal processing activities into synthesis gas, methanol, DME
and/or other derivative products
b. Carry out processing, supply, purchase and/or distribution activities of
DME in the required quantities
• Providing subsidies to Pertamina for the implementation of the assignment
• Support in the form of guarantees for the change in law or political riskm
ease of licensing, tax, and customs facilities, funding support, exceptions to
fulfillment of domestic content level (TKDN/Tingkat Kandungan Dalam
Negeri) for Tanjung Enim coal gasification project
Ministry of Energy and Mineral Resources• Initial data collection of target for DME users, establishment of DME
distribution areas, and provision ofDME starter pack
• Regulation of benchmark price and retail selling price of DME
• Establishment of DME annual sales volume plan and quota per region
Ministry of Finance• Providing subsidies for the difference between the benchmark price and
the retail selling price of DME which is distributed to the public.
• Providing incentives and access to funding for the utilization of Greenhouse
Gas (GHG) emissions
10
Support in CCUS (Carbon Capture, Utilization, Storage) Development
SPPU, PT Pertamina (Persero) - Update Project Investasi Pertamina
18 Million
tCO2
Pertamina is preparing a Decarbonization Roadmap to support global climate change control, in which CCUS will be one of the initiatives
with a significant impact on carbon reduction
Emissions generated from the Oil
Field are injected to increase
productivity
• 3 million tCO2 for 10 years from
CCUS Gundih
• 15 million tCO2 for 25 years from
CCUS Sukowati
CCUS Implementation Progress at PertaminaPertamina has collaborated with several companies and institutions to conduct studies with CCUS,
among others:
Support NeededPreparation of a regulatory framework
that regulates the implementation of CCUS
including CO2 transport, CO2 injection and
CO2 monitoring.
• The current regulatory basis is limited to
compensation provided for carbon
sequestration and storage (Government
Regulation Number 46/2017
Environmental Economic Instruments)
• Regulations that facilitate the utilization
of Upstream working areas for the
implementation of the CCUS Project
JSA
Gundih
MoU
Sukowati
MoU
Mitsui
Exxon
Meeting
MoU
LPDP
MoUMinistry of
Education &
Culture
1 2 3 4 5 6
With Japan NUS,
JGC, J-Power, ITB
on June 18, 2021
With JAPEX and
Lemigas on Juni
18, 2021
One of them is
regarding studies
in the field of
Carbon Solution on
June 18, 2021
CCUS
Development
Commitment in
May 2021
Submission for further
study collaboration on
Direct Electrolysis of CO2
into methanol using
Kedaireka's matching fund
scheme with the Ministry of
Education and Culture.
Further study
collaboration Direct
electrolysis of CO2
into methanol using
the Kedaireka
scheme
Captured
Utilization (CCU) Sequestration (CCS)
Non Conversion Conversion
Enhanced Oil Recovery, Enhanced Geothermal,
Enhanced Cool Bed Methane
Carbon Neutral Fuel, Chemical Synthesis,
Carbon Mineralization, Algae Cultivation
CCUS ConsepIntegrated CO2 System
Potential Utilization of CO2 in Upstream
CCUS Partnership Documentations
11
Support in the Development of Electric Vehicles at PertaminaSeveral activities have been developed and planned by Pertamina to accelerate the EV ecosystem in Indonesia, including charging stations, swapping stations,
and battery packs.
Charging Station
Pertamina has built 4 (four) Electric Vehicle
Charging Stations for Public (SPKLU/Stasiun
Pengisian Kenadaraan Listrik Umum) in Jakarta,
one of which has been operating since
December 2020. Currently in the phase of
commercial trial.
1 EV2W Swap Station
Pertamina and one of the largest online
transportation companies have agreed to
develop an MoU and a trial phase for a 2-
wheel battery exchange station in Indonesia
2Battery Pack
3
Power & NRE Subholding together with other
SOEs have built a 500 kWh Prototype of
Battery Energy Storage System (BESS), with a
capacity of 1 kWh has been planned to be
followed by Certification, Assembly plant
design plant
Proposed Tariff
Policy and
Charging Station
Licensing
Ministry of Energy
& Mineral
Resources
1. Prospective charging station investors need an IUPTL permit approved by the
Minister of Energy and Mineral Resources in accordance with Minister of
Energy and Mineral Resources Regulation 47 of 2018
• Currently, electricity tariffs for end users are determined by the party that
granted the IUPTL permit (local goverment or Ministry of Energy and Mineral
Resources
2. The charging station business requires contributions from private investors to
ensure that the EV and EV Battery Ecosystem can be built quickly in Indonesia
• It is very important to ensure that the business is attractive to private investors
Facilitate Charging Station licensing for
private investors through the issuance of
IUJPTL (Izin Usaha Jasa Penunjang Tenaga
Listrik/Electric Power Support Services
Business License), so charging station
investors do not need to apply for an
IUJPTL permit
Charging Station Licensing and Tariff ConsiderationsSupport needed Proposed Government support
Thank You
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