Environmental Shame for Oil and Gas Companies
The Ministry of Environment and Forestry of the Republic of Indonesia, in its Environmental Management Performance Rating Program (PROPER), suspended Pertamina Hulu Energi North Sumatra Offshore's (NSO) rating for the 2023-2024 period. This is surprising news, given the heavy responsibility of environmental sustainability.
This rating was issued by a state institution, and Pertamina Hulu Energi North Sumatra Offshore (PHE NSO), a subsidiary of the state-owned PT Pertamina (Persero), can be interpreted as both a demonstration of PROPER's independence and PHE NSO's poor commitment to environmental management.
Besides PHE NSO, several other companies have had their PROPER ratings suspended. However, for a company of PHE NSO's stature, operating in the energy sector and involving high-precision technology and security systems, the PROPER suspension is a significant blow. For management that recognizes the importance of environmental responsibility, the suspension can even be considered a disgrace.
This situation indicates that the company has not resolved environmental issues. The public has the right to know why the suspension occurred, whether it was related to environmental pollution committed by PHE NSO, such as air pollution, water pollution, or disruption of the marine ecosystem due to PHE's offshore operations, or whether the company missed certain stages or standards.
As a form of moral responsibility, PHE NSO's management should have self-consciously announced the mistakes they made that led to the suspension of their PROPER status.
The Ministry of Environment and Maritime Affairs should also explain the reason for the suspension of their PROPER status, along with recommendations for PHE NSO to comply with.
This suspension is expected to be more than a mere formality. PROPER is a tool of the Ministry of Environment and Forestry (KLHK) to encourage voluntary compliance. PHE NSO, which previously held a Gold or Green rating, has now been relegated, which is embarrassing.
KLHK data shows that from November 2024 to September 2025, there were 921 cases of national environmental violations, with 845 administrative sanctions—evidence that industries like PHE NSO contribute significantly to 31 percent of air pollution.
PHE NSO's history reflects Pertamina's poor track record. Recall the 2019 Karawang incident, where a gas leak from PHE ONWJ's YYA-1 well polluted the sea as far as Bekasi, killing thousands of fish and shrimp worth billions of rupiah. Similarly, the 2018 Balikpapan oil spill poisoned the Mahakam ecosystem.
This suspension must be a turning point: demand an independent audit, progressive fines under the Job Creation Law, and a zero-discharge commitment.
The Aceh government should not remain silent; it must push for PHE NSO's transparency regarding the "environmental sins" they are hiding. The Aceh government must also investigate the losses suffered by the Acehnese people, whether it is the recent 20 percent decline in Aceh's fisheries, which depend on the Malacca Strait, or the impact of losses the company may be concealing.[]
