Jakarta. State-owned oil and gas firm Pertamina said that it had become the Indonesian state-owned enterprise (SOE) with the highest “local content” or the use of locally made goods and services across its operations. 

In 2023, the local content adoption among Indonesian SOEs was worth Rp 800 trillion. Pertamina Group reported that its local content was worth Rp 374 trillion, reaching almost 50 percent of the total share. The Industry Ministry then awarded Pertamina the 2024 Local Product Use Award.

According to Pertamina’s president director Nicke Widyawati, this shows the company’s commitment to optimizing the use of domestic goods and services to boost the national economy.

"This is Pertamina's commitment not only to achieve the target, but we really want to continue to add domestic industrial players to increasingly take part in filling the need for goods and services for the energy industry in particular," said Nicke.

According to Nicke, Pertamina's commitment to the local content policy is also shown by creating special functions related to the said policy, starting from the planning stage, monitoring to verification. To date, Pertamina has carried out 6,500 transactions with a total contract value of Rp 374 trillion.

Industry Minister Agus Gumiwang said that every purchase of goods and services worth Rp 400 trillion that came from the Local Products Use Increase (P3DN) program could give a 1.8 percent boost to Indonesia’s economy.

“We believe that all this can bring a multiplier effect, added values, and will pave the way for a more equitable industry nationwide,” Agus said.