Pt Pertamina – An integrated Supply Chain

Good morning from today’s blogging team Becky, Michael and Chrissy. Today dressed in traditional clothing.

Today we are visiting Pt Pertamina. Pertamina is Indonesia’s largest state-owned company enterprise in terms of revenue and income. It has been established in 1957 and is successful ever since.
The company produces a multitude of commodities such as fuel, kerosene, LPG, LNG and petrochemicals.

Daniel Purba (Vice president for integrated supply chain at Pertamina) invited us to the Indonesian headquarters in Jakarta and talked to us about the Integrated Supply Chain Activities at Pt Pertamina.

Originally the department was considered as foreign marketing division in 1990’s until 2008. Since then the integrated supply chain finds the optimum quantity to produce for the optimum refinery margin.

Optimization of production in downstream planning optimization. They calculate the optimum balance for production 3 months in advance (rolling forecast). This is how they overcome the volatility of the international market oil price. ISC not only compares market prices but takes into consideration logistics costs as well.

Sweet or sour?
Based upon sulphur content within the oil crude oil can be divided into sweet and sour crude oil.

Sweet crude oil: less than 0.5% sulphur content
Sour crude oil: cheaper, due to the need to add more chemicals to refine as sulphur content usually between 0.8-1.5%

Pertamina is currently changing internally. In former times planning has been done by Pertamina in Indonesia and executions have been made out of Singapore. Since Jan 2015 cut out the middle men in Singapore and ever since ISC is doing all activities theirselves.

 

Staff development:

5-10 year plan (2030) is in place including staff development. Pertamina just built its own university in order to qualify people even better. People are being sent overseas to train employees. Scholarships are available for Masters degree and Ph.D. Programs in Indonesia and overseas.