Hosting the 2025 Upstream Innovation & Improvement Awards: PHE Delivers Value Creation of up to IDR 3.7 Trillion and Contributes to Carbon Emission Reduction

• 19 Dec 2025
• dukut.nugroho

Jakarta - PT Pertamina Hulu Energi (PHE), as Pertamina’s Upstream Subholding, successfully convened the 2025 Upstream Innovation & Improvement Awards (UIIA) Presentation Forum, held from 9 to 11 December 2025. The annual forum serves as a strategic platform to recognize innovation excellence while reinforcing operational efficiency and sustainable value creation. The 2025 implementation generated total value creation of IDR 3.7 trillion and contributed to measurable carbon emission reduction. 

UIIA 2025 was held under the theme “BISA (Big Impact Through Small Act): Innovation in Motion for a Sustainable Future,” reflecting the Upstream Subholding’s continued commitment to embedding innovation as a core business capability. The theme underscores the principle that incremental, well-executed improvements can deliver material impact and support long-term operational resilience and energy security. 

The year 2025 marked the third consecutive year of collaboration between the Continuous Improvement Program (CIP) and the Upstream Cost Optimization Team (OPTIMUS) in the verification of value creation. A total of 108 top-performing CIP delegates from across the Upstream Subholding participated in the forum, facilitating structured knowledge exchange, cross-functional collaboration, and the dissemination of scalable best practices. 

Verification of the 108 selected CIP initiatives presented at UIIA 2025 confirmed realized value creation totaling IDR 3.7 trillion, comprising cost savings of IDR 956 billion, revenue growth of IDR 2.3 trillion, and cost avoidance amounting to IDR 374 billion. 

In his opening remarks, President Director of Pertamina Hulu Energi, Awang Lazuardi, stated that the achievements demonstrated the sustained reliability and performance excellence of the Upstream Subholding. He emphasized the importance of driving impactful change through continuous innovation and improvement to ensure long-term business sustainability. 

The UIIA 2025 Forum showcased a broad portfolio of strategic initiatives, including environmentally responsible technologies, advanced digitalization of upstream operations, and business innovations designed to unlock new growth opportunities. These initiatives collectively strengthen operational reliability while supporting the broader energy transition agenda. 

Awang further emphasized the importance of collective accountability and collaboration in achieving the company’s 2030 strategic targets, including oil production of 1 million barrels per day, gas production of 4 BSCFD, and a reserve-to-production ratio of seven years. 

Through sustained innovation momentum, Pertamina’s Upstream Subholding remains confident in its ability to deliver material contributions to national energy security and the development of a sustainable energy future. During the forum, awards were presented to 108 CIP Groups, comprising 47 Platinum, 56 Gold, and 5 Silver awards, alongside six Best Category awards and six Special Recognition awards. These recognitions reinforce a performance-driven culture focused on measurable business impact and sustainability. 

Vice President Human Capital of the Upstream Subholding, Muhammad Sodiqin, stated that UIIA 2025 serves as a key milestone in strengthening a corporate culture grounded in innovation, collaboration, and sustainable value creation. 

In addition to financial performance, UIIA 2025 delivered 9,036 learning hours, reflecting the consistent application of the AKHLAK core values through structured competency development and continuous learning initiatives. 

The forum also generated positive environmental impact, achieving a certified carbon emission reduction of 700 tons of CO₂ equivalent. This reduction supports the Palm Oil Mill Effluent (POME) Waste-to-Biogas Utilization Project at the Sei Mangkei Biogas Power Plant (PLTBg). 

Through the successful execution of UIIA 2025, the Upstream Subholding reaffirms its commitment to advancing value-driven innovation, strengthening corporate competitiveness, and supporting the achievement of long-term sustainability objectives. 

PHE will continue to invest in upstream oil and gas operations in alignment with Environmental, Social, and Governance (ESG) principles. The company also upholds a Zero Tolerance on Bribery policy, supported by comprehensive fraud prevention measures and the implementation of an Anti-Bribery Management System (ABMS) certified under ISO 37001:2016. 

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