Pertamina tagets to efficiency worth $200m by cutting losses

State owned oil and gas firm PT Pertamina targets to gain additional US$200 million in revenue this year by preventing and mitigating supply losses.

This was said by Pertamina?s President Director Dwi Soetjipto during the Upgrading of Oil Supply Management (PTKAM) Summit.

He said the firm managed to prevent $255.2 million in supply losses last year. This year, the firm targets to prevent around $105 million in supplies losses, but in view of its performance last year, the firm is optimistic to achieve $200 million efficiency from preventing and mitigating the supply losses.

He said Pertamina has proved that reduction of capital or operational expenditure and job cuts are not the only options of efficiency available for oil and gas companies to deal with the market slump. Preventing supply losses is also a good efficiency measure to do.

?While other companies chose to cut jobs, Pertamina chooses not to follow suit. None believes we can do it, but that?s what happens,? he said.

Pertamina?s Human Resources and General Affairs Director Dwi Wahyu Daryoto said Petamina was able to reduce its supply losses to 0.34 percent, far below the international tolerance limit of 0.5 percent. This year, Pertamina targets to further reduce the supply losses to 0.2 percent, resulting in $105 million in efficiency value.

Director of Prevention at the Corruption Eradication Commission (KPK) Pahala Nainggolan said Pertamina could become a model for other state owned enterprise in their efforts to fight corruption.

?KPK will ask Petamina to share its loss-reduction method so that KPK can study it and the method can be replicated in other companies which still have 0.5 percent losses and other state owned enterprises,? Pahala said.

Editing by Johannes Simbolon