Pertamina Economic Outlook 2023: Pertamina's Opportunities and Challenges in Facing the Global Economy
Jakarta, August 10, 2023 – PT Pertamina (Persero) has once again organized the Pertamina Economic Outlook (PEO) with the theme "What's Next for the Economy: Opportunities and Challenges Ahead." PEO focuses on the macroeconomic and geopolitical uncertainties that continue to shadow the future global economy, requiring the correct steps to respond and anticipate forthcoming challenges and opportunities.
In Pertamina Economic Outlook 2023 series framework, a panel discussion was led by SVP Corporate Finance of Pertamina, Bagus Agung Rahadiansyah, as the moderator, and featured presentations from the Head of the Economic and Monetary Policy Department at Bank Indonesia, Firman Muchtar about BI's monetary policy strategies in response to global dynamics. Additionally, PEO also presented Helmi Arman, Director and Citi's Chief Economist for Indonesia and Vietnam at Citibank, who explained the macroeconomic projections for the second half of 2023 and 2024, along with the preparedness measures for potential challenges.
Emma Sri Martini, Finance Director of Pertamina, stated that significant changes in the world economy have occurred in a relatively short period. One of the surprising developments is the credit rating downgrade of the United States, reflecting global geopolitical and economic uncertainties.
As a company in the energy sector, Emma revealed that those uncertainties affected Pertamina's performance. Two critical factors are exchange rate fluctuations and the disparity in interest rates between the United States Federal Reserve (The Fed) and Bank Indonesia.
"Pertamina has implemented various mitigation measures to ensure the stability of the company's financial performance, even in the face of potential uncertainties. Moreover, the narrow gap in interest rates between The Fed and BI further increases the risk of exchange rate changes," Emma explained during the opening of PEO in Jakarta on Tuesday (8/8).
Vice President of Corporate Communication at Pertamina, Fadjar Djoko Santoso, added that Pertamina Energy Outlook is a routine activity by Pertamina's Corporate Finance to provide an understanding of macroeconomic trends and policies that could influence Pertamina's performance. Through PEO, Pertamina can proactively grasp macroeconomic dynamics and various aspects affecting the company's business. "This PEO activity is one of our efforts to enhance the capabilities and understanding of Pertamina's workforce regarding macroeconomics and geopolitics. With such comprehension, it is hoped that Pertamina's employees can formulate business strategies for the company that can yield operational and financial impacts while also contributing to the national economy," Fadjar added.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**