JAKARTA – PT Pertamina Hulu Indonesia (PHI) won the “Best ESG Program” award at the Cost Optimization 2025 Appreciation Day & Kick Off Cost Optimization 2026. At this event, PHI solidified its position as the leading entity in the Cost Optimization Program (Optimus) with a realization of USD 164 million. This cost optimization was generated from revenue growth, cost saving, and cost avoidance components, the largest within the Pertamina Group, leading the Subholding Upstream (SHU) to achieve the “Grand Champion” title.

The award ceremony was held at Grha Pertamina on February 11, 2026, and was attended by the President Commissioner and President Director of PT Pertamina (Persero), along with management from across the group’s entities. The Optimus Program is a prestigious annual event that recognizes innovation and cost optimization performance across all entities within the Pertamina Group.

PHI President Director, Sunaryanto, stated that the award reflects the Company’s commitment and the collective work of all employees. He emphasized that although most of the Company’s assets are in the mature stage, the spirit of cost optimization must be embedded as a foundation to maintain sustainable oil and gas production and the Company’s competitiveness. “This award is the result of the hard work of management and all employees. The cost optimization culture must continue to be strengthened to ensure the sustainability of oil and gas production and the Company’s excellent performance in the years to come,” he said.

This achievement was also supported by the consistent implementation of Environmental, Social, and Governance (ESG) principles across operational lines in all working zones in Kalimantan. Through various operational fuel-efficiency initiatives, the Company not only reduced costs but also strengthened its sustainability performance in measurable ways.

The largest optimization in 2025 also came from borderless synergy across subholdings in collaboration with Perusahaan Gas Negara (PGN) Tbk. PHI successfully utilized surplus natural gas to support PGN’s gas distribution optimization. This strategic step created a sustainable multiplier effect for the Pertamina Group as a whole and reinforced integrated collaboration within the national energy ecosystem.

The Company also recorded significant incremental profit through the commercialization strategy of uncommitted LNG cargo by PHI and the optimization of LPG lifting. This approach shows that management is not only focused on cost efficiency but is also adaptive and innovative in capturing additional revenue opportunities, including from assets that have entered the mature phase.

This achievement reaffirms the position of PHI, its subsidiaries, and affiliates as the driving force of the Subholding Upstream’s performance in realizing efficient, sustainable operations with high added value for the Pertamina Group and its stakeholders.

In line with the Government’s Asta Cita in strengthening national energy resilience and independence, PHI will continue to drive operational excellence that is efficient and sustainable. Through continuous optimization, cross-entity synergy, and the consistent implementation of ESG principles, the Company is committed to ensuring a reliable energy supply to support economic growth and meet national energy needs sustainably.

PT Pertamina Hulu Indonesia (PHI) is part of Pertamina's Upstream Subholding, which manages upstream oil and gas operations and businesses in Regional 3, Kalimantan, covering Zona 8, 9, and 10, in accordance with Environmental, Social, and Governance (ESG) principles to achieve its vision of becoming a world-class oil and gas company. Through its subsidiaries and affiliates, in collaboration with SKK Migas, PHI implements innovative Corporate Social Responsibility programs in the areas of economy, education, health, environment, infrastructure, and disaster response. These initiatives support the sustainability of national oil and gas production and realize #EnergiKalimantanUntukIndonesia. PHI is headquartered in Jakarta. For further information about PHI, please visit https://phi.pertamina.com.