Pertamina’s 2024 Profit Drops as Oil Prices Slide, but 1-Million BOPD Goal Remains on Track

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JAKARTA, investortrust.id — Indonesia’s state energy company PT Pertamina (Persero) booked a net profit of $3.13 billion (Rp 50.9 trillion) in 2024, a decline from $4.77 billion (Rp 76.5 trillion) recorded the previous year. The drop was attributed to weakening global oil prices, including the Indonesia Crude Price (ICP), Brent, and the Mean of Platts Singapore (MOPS).

Speaking at the company’s annual performance briefing in Jakarta, Director of Finance Emma Sri Martini explained that nearly all key global price benchmarks declined throughout the year. “All global indicators declined — from Brent crude, Indonesia Crude Price (ICP), to the Mean of Platts Singapore (MOPS). This directly impacted our earnings,” she said at Graha Pertamina in Jakarta.

By May 2025, the ICP had fallen to $62 per barrel, down from the year-to-date average of $70 per barrel. Emma cautioned that this downward trend could hinder upstream investment without significant regulatory adjustments.

Call for Regulatory Breakthroughs in Upstream Oil and Gas

Emma underscored the urgency of a policy response, stating that unless there is a fundamental breakthrough in upstream oil and gas regulations, the investment climate could deteriorate. Pertamina is working closely with government officials to manage price volatility in a way that protects production and national lifting targets.

“We need breakthroughs in the upstream regulatory framework to avoid setbacks in achieving the government’s target of 1 million BOPD by 2028,” she said.

Despite the earnings slump, Pertamina remains committed to its strategic goal of reaching one million barrels of oil per day (BOPD) by 2028. The company has set a production target of 748,000 BOPD for 2025 under its corporate long-term plan, with 417,000 BOPD expected from domestic assets and 331,000 BOPD from overseas operations.

National Impact Remains Strong Despite Profit Decline

Pertamina’s macroeconomic contribution remained strong. In 2024, the company recorded Rp 415 trillion in domestic spending, supporting 4.1 million jobs and contributing Rp 702 trillion to Indonesia’s gross domestic product. Internal sources estimate that the dividend payout from the 2024 fiscal year will reach around Rp 41 trillion.

Vice President of Corporate Communication Fadjar Djoko Santoso emphasized that all subholdings and subsidiaries within the Pertamina Group are focused on delivering solid performance to help drive national economic growth. He said the company had carried out widespread upstream activity throughout the year, including drilling programs, well development, and extensive maintenance and intervention efforts.

Operational Gains in Refining, Retail Fuel, and Gas Business

In the midstream sector, Pertamina’s refineries continued to operate at high efficiency, delivering a valuable yield of 83.2 percent from an average crude intake of 320 million barrels. These facilities accounted for 70 percent of the country’s fuel production and fully supplied the national demand for jet fuel and biosolar.

Fuel sales also posted strong growth. Pertamina sold 105 million kiloliters of fuel in 2024, an increase of 6 percent over the previous year. At the same time, the company successfully fulfilled its mandate to distribute subsidized fuel to communities across the country. It operates more than 15,000 fuel retail stations and over 250,000 LPG distribution points, ensuring energy accessibility throughout Indonesia.

In the gas business, Pertamina reported trading volumes of 312 million MMBTU. Gas transmission volumes rose 6 percent year-on-year, reaffirming Pertamina’s dominant position in the domestic market with a 91 percent share.

Logistics and Renewables Drive Expansion and Sustainability Goals

Pertamina also recorded improvements in its marine logistics division, with transported cargo volume reaching 161 million kiloliters in 2024. Fleet capacity expanded by 24 percent compared with the previous year, supporting greater supply chain integration.

The renewable energy business under Pertamina New and Renewable Energy marked a significant leap, generating 8,475 GWh of electricity, a 55 percent increase from 2023. This was largely driven by the operations of the Jawa Satu Power gas-fired plant.

Environmental efforts advanced in parallel with operational expansion. Pertamina successfully reduced greenhouse gas emissions by 1.7 million tons of CO2 equivalent in 2024, part of a broader push to decarbonize its value chain and modernize operations in line with sustainability goals.