National Oil Company Profile: Pertamina
Highlights
- Oil and gas production in Indonesia, including Pertamina’s, has declined since 2005. At current production rates and without further discoveries, Pertamina will deplete its oil reserves by 2034 and its gas reserves by 2032.
- Pertamina has the fifth riskiest investment pipeline out of all 57 national oil companies (NOCs) surveyed (19). Seventy-one percent of the company’s investments are unlikely to break even in a moderately paced energy transition scenario.
- Pertamina has announced a target for reaching net zero scope 1 and 2 emissions by 2060 and reducing emissions by 30 percent from 2010 levels by 2030.
- Indonesia depends heavily on oil and gas for its energy, although renewable energy provides 19 percent of its electricity.
See the accompanying guide for definitions of all variables and explanations of the terms used. Sources are referenced with a number in parentheses, e.g., (1), and listed at the end of the profile, together with the reference year. An explanation of the energy transition scenarios used is also at the end of the profile, preceding the references.
This profile was last updated in August 2024.
Key statistics
| Potential scope 3 emissions from reserves (proved, 1P) (1) | 298 Mt CO₂e |
| Home country income level (2) | Upper-middle income |
| Equitable phase-out responsibility (11) | By 2033 |
| Company transition risk: share of investment that does not break even in the moderate transition scenario (1, 19) | 71% |
| Government revenues from oil and gas at risk in the moderate transition scenario, as share of current oil and gas government revenue (8) | N/A |
| Current share of total government revenue from oil and gas (8) | N/A |
Company governance
Pertamina is an integrated group engaged in oil and gas exploration, production, refining and transport in addition to petrochemicals and renewable energy. Pertamina was established in 1968 as the merger of Pertamin (established in 1961) and Permina (established in 1957). It is fully owned by the Indonesian government and produces and explores in Indonesia, Iraq and Malaysia.
Since 2018, Pertamina’s CEO has been Nicke Widyawati.
Pertamina is not listed on stock exchanges. The government is the sole owner of the company.
| Founded (13) | 1968 |
| Listed on exchange (5) | No |
| Employment (23) | 45,312 |
| OPEC member country (15) | No |
| International exploration and production operations (1, 5) | Iraq, Malaysia |
| Subsidiaries (5) | 184 subsidiaries in 14 countries |
Ownership
| Government of Indonesia | 100% |
Source: (5)
Environmental, social and governance performance
The company does not regularly publish a sustainability report, and environmental, social and governance (ESG) indicators are not available. However, Indonesia has a Resource Governance Index score (which measures the transparency and accountability of fossil fuel revenue management, value realisation, and the quality of the wider enabling governance environment) above regional and global averages.
| Company | Country | ESG score (5) | Environmental score (5) | Social score (5) | Governance score (5) | Country Resource Governance Index score (15) |
| Pertamina | Indonesia | N/A | N/A | N/A | N/A | 68 |
| PTT | Thailand | 79 | 92 | 90 | 40 | N/A |
| Sinopec | China | 62 | 80 | 40 | 75 | 55 |
| Regional average | 66 | 73 | 65 | 57 | 56 | |
| Global average | 66 | 68 | 66 | 64 | 52 | |
Reserves and production
Pertamina’s oil and gas production has substantially declined since 2005. Rystad Energy expects this decline to continue for oil, while in the scenario assuming the highest gas price (i.e., OPEC’s expansion scenario) there is a rebound of gas production from 2042 onwards. Pertamina has access to both domestic and foreign oil and gas reserves, and its refining capacity is substantial, accounting for over half of the country’s refined oil products.
Sources: (1, 3, NRGI visualization)
| Refining capacity (bpd) (14) | 1,111,000 |
| Pipeline capacity (bpd) | N/A |
| Oil reserves of NOC (proved, 1P) (million boe) (1) | 1,883 |
| Oil reserves of NOC as share of country reserves (1) | 138%* |
| Years of oil reserves left at current production (1) | 10 |
| Gas reserves of NOC (million boe) (1) | 983 |
| Gas reserves of NOC as share of country reserves (1) | 31% |
| Years of gas reserves left at current production (1) | 8 |
| NOC share in the country’s total oil production (3) | 68% |
| NOC share in the country’s total gas production (3) | 42% |
| NOC ownership share of the country’s total oil reserves* (3) | 138%* |
* A percentage over 100% indicates the NOC owns reserves abroad, in addition to ownership of domestic reserves.
Transition and other economic risks
Neither Indonesia’s public finances nor its exports depend on revenues or production from oil and gas.
Neither Indonesia’s public finances nor its exports depend on revenues or production from oil and gas.
Economic dependence on fossil fuel revenues and exports
| Indicator | 2013–2017 | 2018–2022 |
| NOC transfers to government as share of total fiscal revenue (3, 1) | 2% | 2.2% |
| Crude oil export revenues as share of country’s export revenues (17, 19) | 4% | 1% |
| Gas export revenues as share of country’s export revenues (17, 19) | 7% | 4% |
Government revenues at risk in the transition
| Share of oil and gas revenue in total government revenue (8) | Government revenues from oil and gas in the moderate transition scenario, as share of current oil and gas government revenue (8) | |
| Indonesia | N/A | N/A |
| Malaysia | 20% | 51% |
| China | N/A | N/A |
| Regional median | 42% | 52% |
| Global median | 44% | 56% |
Credit ratings
| Fitch (5) | Moody’s (5) | S&P (5) | |
| Indonesia | BBB | Baa2 | BBB |
| Pertamina | BBB | Baa2 | BBB |
Pertamina financial performance
| Company | Country | Liquidity: current ratio (1, 3) | Efficiency and profits: return on capital employed (1, 3) | Indebtedness: leverage (1, 3) |
| Pertamina | Indonesia | 81% | 37% | 5% |
| PTT | Thailand | 75% | 8.6% | 34% |
| Sinopec | China | N/A | N/A | N/A |
| Regional median | 60% | 13% | 21% | |
| Global median | 33% | 14% | 30% | |
Investment value at risk in different energy transition scenarios
Sources: (1, 19)
Seventy-one percent of Pertamina’s investment pipeline will not break even in the moderate energy transition scenario. Pertamina’s investment pipeline is the fifth most exposed in the world, and the most exposed in the region.
Despite this risk, as of August 2024, the company appears to have a strong financial position. The company has one of the smallest debts of all NOCs, high liquidity and a high return on capital. On these financial indicators, Pertamina scores better than regional and global averages.
Pertamina also compares well against other NOCs surveyed in their statements about the energy transition. Most notably, Pertamina states that it “is projected to lose around 50 percent of its revenue [from the transition] by 2030 if the Company does not immediately respond by developing other sources of revenue besides fossil-based energy” (12).
However, Pertamina falls behind in most indicators elaborated by the World Benchmarking Alliance for oil and gas to assess the financial risks resulting from a possible domestic and/or global energy transition (13). The NOC has, nonetheless, set targets to reduce its scope 1 and 2 emissions by 30 percent by 2030 and to reach net zero by 2060 (12, 13). The company has moderate emissions intensity (9).
Pertamina aims to explore green hydrogen production with a pilot project. It also plans to expand its renewable energy capacity to 5 gigawatts (GW) by 2026 from 0.7 GW in 2021, including through reliance on biofuels and geothermal power.
Despite Pertamina’s extremely high exposure to transition risk, the company has not divested from high-cost upstream assets and continues to expand upstream developments.
Sources: (9, 12, 13, 14)
Energy security
Indonesia is self-sufficient in gas, but its reserves are expected to run out by 2032 at current production rates. Further, the country is not self-sufficient in oil, and its reserves are expected to last until 2034. The country’s power system relies on renewables for 19 percent of its electricity generation (4).
| Refining throughput of NOC as share of final country consumption of oil products (6) | 57% |
| Years of oil reserves left at current production (1) | 10 |
| Years of gas reserves left at current production (1) | 8 |
| Crude oil and refined oil products imports as share of national consumption of oil products (4) | 35% |
| Share of oil and gas in primary energy consumption of country (4) | 54% |
| Gas imports as share of country supply of gas (4) | 0% |
| Share of electricity production of country from renewables (4) | 19% |
Climate impacts and greenhouse gas emissions
Pertamina has moderate scope 1 and 2 emissions per barrel, which it seeks to reduce through efficiency measures and renewable energy, while it is still exploring carbon capture and storage solutions. Pertamina’s scope 1, 2 and 3 emissions intensity is expected to continue to increase until 2027.
| NOC emissions reduction target, scope 3 emissions | N/A |
| NOC emissions reduction target, scope 1 and 2 emissions (13) | 30% by 2030 |
| Annual scope 1 and 2 emissions of NOC (3) | N/A |
| Average GHG emitted before combustion per barrel of oil produced by companies in country (9) | 112 kg CO₂e/boe |
| Average GHG emitted before combustion per boe of gas produced by companies in country (9) | 89 kg CO₂e/boe |
| OGDC member company (10) | No |
| NOC net zero target, scope 1 and 2 emissions (5) | 2060 |
| Total potential emissions (scope 1–3) from reserves (1, 9) | 298 Mt CO₂e |
| Equitable phase-out responsibility of the country (11) | 2033 |
Energy transition scenarios
We use four energy transition scenarios:
Fast. We based this scenario on the oil and gas demand estimated in the International Energy Agency’s (IEA) Net Zero Emissions by 2050 Scenario, which maps out a transition pathway that would limit global warming to 1.5°C. This assumes large-scale negative emissions enabled by technologies such as carbon capture and storage.
Moderate. We based this scenario on the IEA’s Announced Pledges Scenario, which assumes the full and timely implementation of national energy and climate goals, including net zero emissions targets.
Slow. We based this scenario on the IEA’s Stated Policies Scenario, which assumes governments follow their current set of energy and climate policies.
Expansion. We based this scenario on the Organization of Petroleum Exporting Countries’ (OPEC) scenario, which assumes a continued expansion in demand up to 2045.
Sources
All data are from the latest year available as referenced in the relevant source as of August 2024. For most data this is 2024. Data related to emissions and NOC finances are from 2023 or in some cases 2022. Data on country-level oil and gas reserves and production, the ownership of oil and gas reserves, employment and energy security are from 2022. The Resource Governance Index score is from 2021. If you find an error in this profile, please email noc_profiles@resourcegovernance.org.
- Rystad Energy UCube, 2024 (proprietary data)
- World Bank, 2024
- NOC Database, 2023
- International Energy Agency (IEA), 2024
- S&P Global IQ, 2024 (proprietary data)
- Statistical Review of World Energy, 2024
- Euromonitor, 2023
- Carbon Tracker, 2023
- Fossil Fuel Registry, 2023
- Oil & Gas Decarbonization Charter (OGDC), 2024
- An Equitable Phase Out of Fossil Fuel Extraction (Equity Review), 2023
- Facing the Future (NRGI), 2023
- World Benchmarking Alliance, 2023
- U.S. Energy Information Administration, 2024
- Resource Governance Index (NRGI), 2021
- OPEC, 2024
- U.N. Comtrade, 2024
- Global Oil & Gas Exit List, 2024
- Riskier Bets, Smaller Pockets (NRGI), 2023
Explore how national oil companies are navigating the energy transition
NRGI’s national oil company profiles provide detailed insights into each company’s structure, strategy and role in the energy transition.
