PT Pertamina (Persero), Indonesia’s state energy giant, is intensifying its commitment to sustainability by embedding Green Procurement principles into its procurement processes. This strategic move, highlighted at the Pertamina Supplier Relationship Management (SRM) 2025 event held in Jakarta on July 24, 2025, calls on partners, suppliers, and vendors to align their operations with sustainability goals. The initiative aims to contribute to emission reductions, improve workplace safety, and enhance community welfare, underscoring Pertamina’s broader Environmental, Social, and Governance (ESG) framework.
According to Fadjar Djoko Santoso, Vice President of Corporate Communication at Pertamina, the SRM forum serves as a vital platform for communicating procurement regulations and reinforcing sustainable practices. He emphasised that the Green Procurement approach urges all associated companies to adopt responsible environmental, social, and governance practices. “With this commitment, Pertamina and its partners can collectively contribute to a better and safer environment and improve community welfare,” he stated.
Sustainability, as SVP Procurement Hery Murahmanta noted, is now foundational for the continuity of goods and services procurement. This is being operationalised through streamlined processes such as centralised umbrella contracts and innovations like Pertamina’s Price Database & Market Intelligence Tools (PREDICT) and the standardisation of the Pertamina Material Identification Code (KIMAP). These efforts are designed to drive efficiency while embedding sustainability criteria across the supply chain.
Pertamina’s sustainability commitment is reflected in various initiatives beyond procurement. For instance, in January 2025, its refinery unit, Kilang Pertamina Internasional, began producing certified sustainable aviation fuel (SAF) from used cooking oil, with an annual output of 300,000 kilolitres. This initiative is a key step in Pertamina’s drive to reduce greenhouse gas emissions and transition to cleaner energy sources.
Moreover, Pertamina launched a Respectful Workplace Policy in 2021 to foster a discrimination-free and zero-harassment environment, integral to its ESG goals aligned with the Sustainable Development Goals (SDGs) on gender equality and decent work. This complements the company’s occupational safety achievements, including a record of 171.7 million safe working hours in its Eastern Indonesia Region up to December 2023, underscoring its commitment to decent work and economic growth (SDG 8).
Environmental stewardship is another pillar of Pertamina’s ESG strategy. The company is employing Carbon Capture, Utilization, and Storage (CCUS) technology and consistently improving energy efficiency to meet emission reduction targets. Its flora and fauna conservation programs further demonstrate dedication to biodiversity preservation. Pertamina’s tangible outcomes were recognised in May 2024, when it received awards for corporate emission reduction transparency after achieving an 8.5 million ton CO2 cut, representing 34% of its emissions by 2023.
Pertamina’s sustainability scope extends to community-based innovations such as the Waste to Energy for Community (Wasteco) Program by Pertamina Hulu Indonesia Group. This project converts methane from organic waste into renewable energy, benefiting hundreds of households and businesses while reducing carbon emissions by nearly 300,000 tons CO2 equivalent annually.
This collective approach to environmental responsibility, workplace safety, and social wellbeing is positioning Pertamina and its partners as leaders of sustainable corporate practice in Indonesia’s energy sector. While the company promotes its Green Procurement policy as a critical lever for ongoing progress, it aligns with a broader agenda of decarbonisation, innovation, and inclusive growth—key to Indonesia’s—and Pertamina’s—energy transition and sustainable development ambitions.
Source: Noah Wire Services
