PT Pertamina (Persero) needs to allocate a total of US$92 billion, equivalent to Rp1,315 trillion capital expenditure for the period 2020-2024, Finance Director Emma Sri Martini said.  (BI exchange rate today is Rp14,299 per US$).

"If we source this investment funding by ourselves, of course, the balance sheets are over stress, so we expect capital funding from commercial banks or multilateral banks or Sovereign Wealth Fund Indonesia or Indonesia Investment Authority (INA) and PT Sarana Multigriya Financial, and others," said Emma, in the online event Prospects of SOEs 2021 as PEN Locomotive and Sovereign Wealth Fund, on Thursday (4/3).

Furthermore, We expect to meet this capital expenditure from internal cash of around 38% and 62% from external. INA's participation in Pertamina's strategic projects in the form of capital injections can strengthen Pertamina's capital structure so that Pertamina will manage to maintain its debt-to-equity ratio below 80%.

Also, Pertamina is open to private investment, which will synergize with other strategic partners, either through cooperation with investors who have funds or strategic investors who have technology and knowledge.

We will allocate the investment for the upstream sector amounting to US$64 billion, downstream US$20 billion, and gas development, power plants, and US$8 billion NRE.

In the 2020-2024 period, 14 Pertamina projects became national strategic projects (PSN) in the upstream, downstream, clean, renewable energy sectors and four Pertamina strategic projects (PSP).

Details of the 14 PSNs are the Jambaran Tiung Biru project with a capex of around US$1.5 billion, the Tuban grass root refinery US$16.7 billion, the Dumai RDMP US$1.3 billion, Plaju RDMP US$1.3 billion, Cilacap RDMP US$3.6 billion, Balikpapan RDMP US$7.1 billion, Balongan polypropylene US$300 million, East Indonesian fuel tank Rp205 billion, East Indonesian LPG tank Rp1.279 trillion.

Then, the construction of a city gas network (national) IDR 33 trillion, Tanjung Enim coal gasification US$2.1 billion, green diesel RU IV Cilacap US$300 million, green refinery RU III Plaju US$700 million, red and white catalyst Rp170 billion.

Meanwhile, the four PSPs are TPPI's olefins US$3.7 billion, BBM and LPG infrastructure US$2 billion, gas transmission and distribution US$4 billion, the EV battery ecosystem US$3.2 billion.