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President Director of Pertamina Nicke Widyawati (left) during the ceremony of PROPER 2021 award witnessed by Vice President of the Republic of Indonesia Ma'ruf Amin, and Indonesian Minister of Environment and Forestry Siti Nurbaya Bakar here on Tuesday (December 28, 2021). (ANTARA/HO-Pertamina) - 

Pertamina received 23 gold awards in the Corporate Performance Rating Program in Environmental Management (PROPER) 2021 organized by the Environment and Forestry Ministry for successfully implementing Environmental, Social & Governance (ESG) for business sustainability.

The number of awards garnered had increased sharply as compared to 16 Gold PROPER in 2020.

According to the Ministry of Environment and Forestry's website, PROPER is an environmental program to promote and enforce environmental regulation, compliance with pollution control standards, and encourage pollution reduction.

The gold award is bestowed on a company that demonstrates environmental excellence consistently in production and services, conducts business ethically, and is responsible to the community.

PROPER Gold 2021 was bagged by the Pertamina Group across business sectors starting from upstream to processing (midstream), and downstream.

The nine recipients of the 2021 Gold PROPER in the upstream sector comprised PT Pertamina EP Asset 3 Subang Field, PT Pertamina EP Asset 5 Sangasanga Field, PT Pertamina EP Asset 5 Tarakan Field, JOB Pertamina - Medco Energi Tomori Sulawesi, PT Pertamina Geothermal Energy Kamojang Area, PT Pertamina Hulu Energi Jambi Merang, PT Pertamina Hulu East Kalimantan, and PT Pertamina Hulu Mahakam BSP Field and South Processing Unit.

The two recipients of the 2021 Gold PROPER in the processing sector were PT Pertamina (Persero) RU II Sei Pakning Refinery and PT Pertamina (Persero) RU VII Kasim Sorong Refinery.

The 12 recipients of the 2021 Gold PROPER in the downstream sector comprised Fuel Terminal Cikampek, Fuel Terminal Bandung Group, Fuel Terminal Boyolali, Fuel Terminal Maros, Fuel Terminal Rewulu, Fuel Terminal Tuban, Integrated Terminal Semarang, Integrated Terminal Semarang Surabaya, Ngurah Rai Bali Aircraft Filling Depot (DPPU), Sepinggan Balikpapan Aircraft Filling Depot (DPPU), and Hasanuddin Makassar Aircraft Filling Depot (DPPU) and PT Badak LNG.

The award handover ceremony was attended and witnessed by Vice President of the Republic of Indonesia Ma'ruf Amin and Indonesian Minister of Environment and Forestry Siti Nurbaya Bakar.

The award was received directly by President Director of Pertamina Nicke Widyawati at the Proper Environmental Award event that took place in Jakarta on Monday (Dec 27).

During the ceremony, Amin stated that PROPER had developed into a platform for the business world to conduct sustainable business practices by applying the principles of the green economy.

Amin also pinned high hopes on the business community playing an active role in tackling climate change and encouraging sustainable environmental management. As a result, industry players participate in handling and mitigating the impacts of disasters.

"Indonesia's 2030 target is to reduce the adverse impacts of climate change, as Indonesia is highly committed to reducing greenhouse gas emissions and remains committed to achieving net-zero emissions by 2060," he affirmed.

On the same occasion, Widyawati explained that Pertamina positively welcomed the Proper activities organized by the Ministry of Environment and Forestry. Through PROPER, assessing a company's environmental management performance become more measurable, objective, and accountable.

According to Widyawati, PROPER aligns with Pertamina's commitment to implementing Environmental, Social & Governance (ESG) in an integrated manner from upstream to downstream to support a sustainable business. The increase in Pertamina's Gold PROPER achievement in 2021 demonstrates its seriousness in implementing ESG across all business lines. 

Pertamina has succeeded in increasing the ESG Risk Rating by 28.1 and is considered to be at Medium risk. With this standing, Pertamina occupies the 15th position out of the 252 companies in the Oil & Gas industry and the eighth position in the integrated Oil & Gas sub-industry. Pertamina is in the same cluster (Medium Risk) as global companies comprising Repsol, ENI, PTT Thailand, and TotalEnergies. This position was recorded better than BP, Exxon, and Chevron.

"Pertamina will continue to consistently implement the ESG aspect in the company's business strategy by continuing to pay attention to PROPER's performance that is following the rules set by the Ministry of Environment and Forestry," Widyawati affirmed.

In implementing ESG, she noted that Pertamina has set 10 sustainability focuses that will guide the implementation of ESG in future and had formed a Sustainability Committee to ensure that the ESG aspects are implemented properly. Pertamina has also launched policies related to ESG, such as the Sustainability Policy, Human Rights Policy, and Respective Workplace Policy. 

Pertamina's compliance level and the operating unit on social and environmental issues were observed based on their participation during the last four years. In 2017, Pertamina won 11 out of the 19 Gold PROPER. Thereafter, in 2018, Pertamina bagged 14 out of the 20 Gold PROPER. Meanwhile, in 2019, it received 13 out of the 26 Gold PROPER. In 2020, Pertamina won 16 out of the 32 Gold PROPER.

"The increase in the number of Gold PROPER won by Pertamina shows its superior performance as a world-class energy company that always prioritizes environmentally friendly business operations. Congratulations to colleagues from the unit that received the gold PROPER award. This is a motivation for others, with a sustainable program that is much better and in line with Pertamina's commitment in Indonesia. I am very proud to be a big family of Pertamina," Widyawati affirmed//ANT