Pertamina Hulu Energi Records Billions in TKDN (Domestic Content Level) Value, Strengthens National Capacity Contribution

• 23 Sep 2024
• mk.novian.kusmana

JAKARTA – In a demonstration of its commitment to bolstering the national upstream oil and gas supply chain, PT Pertamina Hulu Energi (PHE), a subsidiary of Pertamina, made a prominent appearance at the Supply Chain & National Capacity Summit 2024 held at JCC Senayan, Jakarta, from August 14 to 16, 2024.
One of the key pillars of PHE's dedication to ensuring the robustness of the upstream oil and gas supply chain is its consistent drive to increase the use of local products through the Domestic Content Level (TKDN) initiative in all operational areas. By prioritizing domestic production, PHE not only strengthens the national industrial sector but also creates job opportunities, enhances community incomes, and drives broader economic growth.
In 2022, PHE's TKDN value reached IDR 14.38 billion, which rose to IDR 16.77 billion in 2023, with IDR 8.81 billion recorded by the second quarter of 2024. This contribution plays a significant role in generating a multiplier effect that boosts the national economy.
At the Supply Chain & National Capacity Summit 2024 (SCM Summit 2024), themed "Navigating Long-Term Plans Through Integrated Supply Chains for National Capacity Building," PHE hosted a platform highlighting its performance in enhancing domestic capacity, executing seamless operations, promoting efficiency, and advancing supply chain management.
Distinguished attendees at the opening ceremony included Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Energy and Mineral Resources Arifin Tasrif, Chairman of Commission VII DPR RI Sugeng Suparwoto, Head of SKK Migas Dwi Soetjipto, and PHE's Director of HR & Corporate Services Whisnu Bahriansyah. The event also attracted hundreds of business leaders and stakeholders from across the national upstream oil and gas industry.
In his keynote address, Minister Luhut Pandjaitan emphasized three key strategies for ensuring energy security: “Optimizing the oil and gas industry, expanding the use of biofuels, and maximizing the potential of the domestic supply chain.” 

Minister Arifin Tasrif echoed these sentiments, stating, “An effective and efficient supply chain is the foundation for the sustainability of the upstream oil and gas sector. We must drive innovation across various aspects to reinforce our commitment to securing the future of domestic energy.”
PHE’s platform featured visual displays, mini-talk shows, and a host of innovations aimed at fostering idea exchange among participants. These initiatives are integral to supporting the company’s efforts in supply chain management, enhancing efficiency, and strengthening the overall SCM function.
PHE also remains steadfast in encouraging local manufacturers to remain competitive and active contributors, ensuring quality improvements through ongoing assessments in collaboration with SKK Migas and other KKKS. Through the Ministry of BUMN’s PaDi UMKM platform, PHE continues to invest in local enterprises, with transaction values increasing from IDR 89.78 billion in 2022 to IDR 197.2 billion in 2023, and IDR 112.23 billion by the second quarter of 2024.
Between 2023 and 2024, PHE, through its regional subsidiaries and AP Services, implemented capacity-building programs for local communities, benefitting over 1,000 individuals, including women and persons with disabilities, and engaging more than 40 micro, small, and medium enterprises (UMKM). These initiatives included capacity building for heavy equipment operators, certification programs for drillers, welders, and HSE officers, as well as economic empowerment programs for women, fishermen, and youth.
At SCM Summit 2024, PHE also showcased its remarkable performance in oil and gas production, recording an impressive 1.05 million barrels of oil equivalent per day (BOEPD) from January to June 2024, with oil production at 556 thousand barrels per day and gas production at 2.86 billion cubic feet per day. This success underscores the hard work and dedication of all PHE regions and subsidiaries.
During the VIP Booth Tour, PHE VP SCM Bongbongan Tampubolon highlighted the importance of an integrated supply chain from exploration to production, ensuring operational optimization, reduced risks, and enhanced efficiency, all of which contribute to national energy security. He also emphasized PHE’s commitment to the continued digitalization of supply chain management, covering procurement, provider assessments, and TKDN monitoring.
"PHE remains dedicated to supporting the increased use of domestic products within the upstream oil and gas industry. The integration of local content into the company’s operations will have a significant positive impact on the national economy, creating jobs and elevating community income," said Bongbongan Tampubolon.
The SCM Summit 2024 was attended by 51 national oil and gas companies, providing a platform for participants to explore cutting-edge technology and innovations, as well as engage in interactive discussions with industry experts on enhancing supply chain management effectiveness in the upstream oil and gas sector.
PHE continues to uphold sustainable business practices aligned with global investment trends, particularly regarding Environmental, Social, and Governance (ESG) principles. Since June 2022, PHE has been a participant in the United Nations Global Compact (UNGC) and remains committed to the Ten Principles of the UNGC in its strategy and operations.
In line with its governance standards, PHE enforces a Zero Tolerance for Bribery policy, ensuring fraud prevention and compliance with the Anti-Bribery Management System (SMAP), standardized under ISO 37001:2016.
As PHE strives to maintain its world-class status, it will continue to champion operational excellence, environmental stewardship, and good governance, reinforcing its position as a leading oil and gas company both domestically and globally.
 
 

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