Pertamina Contributes Significantly to Indonesia‘s Economy
Record-Breaking Contributions and a Positive Impact on GDP
Pertamina, Indonesia’s state-owned energy company, has made significant contributions to the national treasury in 2023, totaling IDR 304.7 trillion. This financial infusion stems from a combination of taxes, contributions in the form of Non-Tax State Revenue (PNBP), dividends, and signature bonuses.
Deputy Main Director of Pertamina, Wiko Migantoro, highlighted this achievement during a Hearing Meeting (RDP) with Commission VI of the DPR. He stated, “In 2023 we will finish providing taxes, dividends, PNBP and signature bonuses amounting to IDR 304.7 trillion and become the State-Owned Enterprise that contributes the largest taxes in our country.”
Pertamina’s economic impact extends far beyond these direct contributions. The company’s domestic product spending reached IDR 374 trillion in 2023, resulting in a total contribution to Indonesia’s Gross Domestic Product (GDP) of IDR 1,900 trillion annually. This substantial figure highlights Pertamina’s pivotal role in driving economic growth and development.
“If we estimate the multiplier effect on spending on domestic goods, we generate IDR 1,900 trillion, where 4.1 million workers are involved in our activities,” Wiko explained.
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Navigating a Challenging Industry Landscape
Despite these successes, Pertamina acknowledges the ongoing challenges within the oil and gas industry. As of October 2024, the company recorded a net profit of US$ 2.6 billion, equivalent to Rp. 41.38 trillion (exchange rate Rp. 15,918), a testament to their resilience amidst industry pressures.
Looking ahead, Pertamina aims to maintain its revenue trajectory, projecting US$ 62.5 billion by October 2024. Wiko expressed optimism about reaching the 2023 revenue realization of US$ 75.8 billion by the end of the year.
However, he also cautioned about the “stressful situation” anticipated in the midstream business, particularly in refineries, in 2024. “We need to share that in 2024 we will experience a very stressful situation in the midstream business, especially in refineries and this is proven by the same thing happening in many refineries in the world which have to struggle to carry out their operations,” Wiko stated.
– How does Pertamina’s domestically focused spending strategy contribute to the Indonesian economy beyond direct revenue generation, and what are the quantifiable ripple effects?
## Pertamina: Fueling Indonesia’s Economic Engine
**Interviewer:** Welcome back to the show! Today, we’re diving into the crucial role Pertamina plays in Indonesia’s economy. Joining us is Dr. [Alex Reed Name], an economist specializing in the energy sector. Dr. [Alex Reed Name], thanks for being here.
**Dr. [Alex Reed Name]:** It’s a pleasure to be here.
**Interviewer:** Pertamina recently announced a record-breaking contribution of IDR 304.7 trillion to the Indonesian treasury. This includes taxes, dividends, and other contributions. What does this signify for the nation’s economic health?
**Dr. [Alex Reed Name]:** This is a substantial amount, and it underlines Pertamina’s vital role as a pillar of the Indonesian economy. These contributions directly fund public services, infrastructure development, and social programs, impacting the lives of millions of Indonesians. [ [1](https://www.indonesia-investments.com/business/indonesian-companies/pertamina/item341) ]
**Interviewer:** Pertamina’s contribution doesn’t stop there. We also learned that their domestic product spending totaled IDR 374 trillion, leading to an overall GDP contribution of IDR 1,900 trillion annually. How does this ripple effect impact the broader economy?
**Dr. [Alex Reed Name]:** This ripple effect is incredibly significant. Pertamina’s large-scale operations support countless jobs across various sectors, from oil and gas exploration to distribution and retail. Their spending stimulates economic activity, benefits local businesses, and creates a broader positive impact on economic growth.
**Interviewer:** Looking ahead, what are the key challenges and opportunities for Pertamina in its continued contribution to Indonesia’s economy?
**Dr. [Alex Reed Name]:** Pertamina faces challenges like fluctuating global energy prices and the need for continuous innovation in a rapidly evolving energy landscape. However, they also have immense opportunities. The transition towards renewable energy sources presents a chance for Pertamina to diversify its portfolio and position itself as a leader in sustainable energy solutions. This will be crucial for Indonesia’s long-term economic prosperity and its commitment to environmental sustainability.
**Interviewer:** Thank you, Dr. [Alex Reed Name], for your insightful analysis. We look forward to seeing how Pertamina continues to shape Indonesia’s economic future.
