Pertamina at 68: From Oil and Gas Champion to Indonesia’s Future Energy Powerhouse

JAKARTA, Investortrust.id — As Pertamina marks its 68th anniversary on Wednesday, the state-owned energy giant enters a new era defined not only by strong upstream–downstream performance but also by a decisive shift toward cleaner, future-oriented energy systems. Founded on December 10, 1957 as PT Permina, the company has grown from a national oil company into an integrated energy group spanning upstream operations, refining, petrochemicals, gas, logistics, and renewable energy.

The milestone comes as Pertamina reports robust operational performance in 2025. Production reached 1.03 million barrels of oil equivalent per day (MMBOEPD) as of the third quarter, consisting of 553,000 barrels of oil per day and 2.83 billion standard cubic feet of gas per day. The company’s upstream arm, Pertamina Hulu Energi (PHE), drilled 661 development wells, executed 969 workovers, and completed over 28,000 well-service operations through September 2025. Seismic surveys across multiple basins further extended the company’s reserve-development prospects.

Pertamina’s refining and distribution systems also continue to anchor national energy security. Its refineries achieved a valuable yield efficiency of 83.2%, backed by modern infrastructure capable of processing hundreds of millions of barrels annually. This network enables Pertamina to supply the bulk of the country’s gasoline, aviation fuel, LPG, and other essential fuels — including for remote and 3T regions — cementing its role as the backbone of Indonesia’s energy distribution.

Innovation and ESG Leadership

Beyond operational resilience, Pertamina has strengthened its credentials as an innovation- and sustainability-driven public institution. In 2025, the company was named Indonesia’s Most Innovative Public Agency in the Information Transparency Award and clinched two honors at the AMEC Global Communication Effectiveness Awards — Gold for sustainability communications and Silver for volunteerism via the “Komunitas Bergerak” program.

Internal innovation also accelerated. Through the Annual Pertamina Quality Awards (APQA), 180 innovation teams involving 1,239 employees generated an estimated Rp 9 trillion in value creation, reflecting deepening improvement culture across the group.

Positioning for Low-Carbon Growth

As global energy markets transition toward decarbonization, Pertamina is widening its strategic focus beyond its legacy oil and gas business. Investments in biofuels, natural gas, geothermal, and low-carbon technologies such as carbon capture and storage (CCS) are now central pillars of its long-term roadmap, which put the company at the center of Indonesia's goal of net zero emission in 2060.

A major breakthrough arrived this year when Pertamina identified 7.3 gigatons of CO₂ storage potential across nine basins, leveraging depleted or mature oil and gas fields. According to Yudhi Haryadi, Acting SVP of Business Development, the Asri Basin north of Java is the most advanced site, with 1.1 gigatons of potential CO₂ capacity and a target start date of 2030.

“We have several fields that are already depleted, which can be filled with carbon captured from industrial sources,” Yudhi said during the Outlook Energi Indonesia 2026 forum. He noted that Asri Basin is designed to become a regional CCS hub, attracting CO₂ flows from Singapore, Malaysia, Japan, and Korea.

Domestic industries are also showing interest. Yudhi confirmed that Krakatau Steel has begun preparing CO₂ streams for injection into Asri Basin, underscoring the growing role of CCS in Indonesia’s industrial decarbonization.

Additional basins — including South Sumatra, Central Sulawesi, and East Kalimantan — are being advanced as future CCS hubs, while feasibility studies are underway for the Kutai and Sulawesi basins.

Balancing Legacy Strength with Energy Transition

Pertamina’s 68-year journey reflects a company maintaining strong performance in its core oil-and-gas operations while rapidly aligning with Indonesia’s climate and energy-transition ambitions. The dual strategy — protecting national energy security while building new low-carbon businesses — is now seen as fundamental to long-term competitiveness and national resilience.

As Indonesia targets deeper decarbonization and sustainable growth, Pertamina’s evolution positions it not only as the country’s traditional energy champion but also as a key player in shaping Southeast Asia’s future energy landscape.