Pertamina Patra Niaga Urged to Distribute Subsidized Fuels on Target

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 300.Pers/04/SJI/2021

Date: 31 August 2021

Pertamina Patra Niaga Urged to Distribute Subsidized Fuels on Target

After presenting Decision of Head of BPH Migas on amendment of the assignment of PT Pertamina (Persero) to provide and distribute Certain Types of Oil Fuels (JBT) and Special Task Fuel (JBKP) from 2018 to 2022, Head of BPH Migas, Erika Retnowati, urged that these fuels be distributed to the right targets. Additionally, Erika called on Pertamina to speed up the provision and distribution of environmentally friendly fuels that have the recommended octane rating.

"In accordance with the mandate Article 46 section (2) of Law Number 22 of 2001 on Oil and Gas, the main function of BPH Migas is to make arrangements to guarantee availability and distribution of oil fuels and natural gas determined by the government across the territory of the Republic of Indonesia and to increase the domestic use of natural gas," Erika said when opening the Decision presentation ceremony, Tuesday (31/8).

For the record, the ceremony marks the official transfer of assignment from state energy company PT Pertamina (Persero) to its subsidiary, energy trading company PT Pertamina Patra Niaga. PT Pertamina (Persero) was previously assigned to provide and distribute JBT and JBKP from 2018 to 2022, but due to the restructuring of state owned enterprises and based on Presidential Regulation Number 69 of 2021, the assignment was transferred to PT Pertamina Patra Niaga.

Erika asked PT Pertamina (Persero) and PT Pertamina Patra Niaga to carry out the distribution of oil fuels responsibly and to the right targets.

"Congratulations on your assignment! I hope you can carry out this assignment responsibly, and the JBT and JBKP are provided and distributed to the right targets. Although this assignment will be carried out by PT Pertamina Patra Niaga, I hope Pertamina still share the responsibility," continued Erika.

In addition, Erika asked President Director of PT Pertamina (Persero) to speed up the production and distribution of more environmentally friendly oil fuels that meet the applicables rules. This is in line with the directive of Minister of Energy and Mineral Resources during the Work Meeting with Commission VII of the House of Representatives of the Republic of Indonesia (DPR RI) on Thursday (26/08).

"In terms of environmental issues, I hope PT Pertamina (Persero) will immediately finish the Environmentally Friendly Fuels Roadmap, of RON 91 minimum, as mandated by Regulation of Minister of the Environment and Forestry Number 20 of 2017 on Quality Standards for the Exhaust Emissions of New Motorized Vehicles Categories M, N, and O," Erika added.

President Director of PT Pertamina (Persero), Nicke Widyawati, guaranteed that Pertamina would assume full responsibility of the assignment although the distribution would be carried out by PT Pertamina Patra Niaga.

"Pertamina, as the assigned party, appoint a subsidiary, in this case PT Pertamina Patra Niaga as commercial and trading subholding, to perform the assignment, for both Certain Types of Fuels and Special Task Fuel. Therefore, Pertamina (Persero) assumes full responsibility, because we're the party receiving the assignment, and we perform various functions, from planning to execution. Mr. Mulyono is in charge of this function, namely under Directorate of Integrated Logistic and Infrastucture of PT Pertamina," Nicke asserted.

Nicke went on to say that the assignment performance would be more effective and efficient while the bureaucracy shortened, because the authority over the operations were fully handed over to PT Pertamina Patra Niaga. Mr. Mulyono's directorate will do the monitoring and evaluation to ensure the assignment is performed accordingly.

In terms of the production and distribution of more environmentally fuels, Nicke said Pertamina had started to carry out the Blue Sky Program since last year. The program is aimed to support the government's programs towards the Net Zero Emission in 2060 and the 29% carbon emission reduction in 2030.

"We've been educating the public to use more environmentally friendly fuels. We can see that in August 2021, only 30% of the quota for JBKP Premium RON 88 was used because consumers shifted to Pertalite and Pertamax," Nicke.

Thanks to the shift, Nicke added, Pertamina had contributed to reducing carbon emission by 17 million tonnes.

"Of course, we hope we can continue to raise public awareness, through education programs and giving rewards to people who shift to better fuels. With your support, Ladies and Gentlement, we'll be able to contribute more significantly to emission reduction," Nicke concluded.

For the record, Certain Types of Oil Fuels (JBT) include subsidized kerosene and subsidized Solar diesel, while Special Task Fuel (JBKP) refers to Premium gasoline RON 88 sold outside of Java, Madura, and Bali islands. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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