Determining Performance Contractor’s Work


Using Earned Value Methods in Pertamina

FFED Dumai, Cilacap & Kasim

in Indonesia



By Achmad Purwadi, CCP

West Java, Indonesia


One of the exciting challenges of a job implementation is controlling the work to follow what is planned in terms of cost, quality, and time. The Earned Value Method (EVM) is a way to monitor work effectively and efficiently. With EVM, several things can be observed, such as Budgeted Cost Work Performed (BCWP) or also called Earned Value (EV), Actual Cost Work Performed (ACWP) or Actual Cost (AC), Schedule Performance Index (SPI), Cost Performance Index (CPI) where everything is compared to the Budgeted Cost Work Schedule (BCWS) which is also known as the Planned Value (PV). In addition, EVM can also predict project duration by calculating Estimate at Completion (EAC), Estimate to complete (ETC), To Complete Performance Index (TCPI), and also Budget at Completion (BAC) values.

Keywords:      Budgeted Cost Work Schedule (BCWS), Budgeted Work Performed (BCWP), Actual Cost Work Performed (ACWP), Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), Cost Performance Index (CPI), Estimate at Completion (EAC), Estimate to Complete (ETC), To Complete Performance Index (TCPI), Budget at Completion (BAC)


“The world’s energy needs continue to increase. According to the World Energy Agency (IEA) projections, by 2030, the world’s energy demand will increase by 45%, or an average increase of 1.6% per year. Based on the IEA’s projections for the period 2006-2030, the world’s energy demand mostly comes from non-OECD countries, which is 87%. Fossil fuels supply around 80% of the world’s energy needs. The position of coal also marked energy growth during this period as the second most important supplier of energy sources after oil.”[1]

Figure 1 Global Primary Energy Consumption by Energy Source (2010-2050)[2]

“Pertamina, as a State-Owned Enterprise, has the task of carrying out activities from the Government to fulfill domestic energy needs. This Company is active in the upstream and downstream portions of the oil and gas business.”[3]. “The upstream sector includes exploration and production of oil, gas, and geothermal energy, while downstream activities include processing, marketing, trading, and shipping”.[4]. PT Kilang Pertamina Internasional as a Sub Holding is responsible for oil processing activities into oil products and petrochemical products, which are found in some refineries that are already operating as well as projects that are being carried out.”[5].

Based on the regulations stipulated by the Government about Standards and Quality (Specifications of Diesel Fuel Oil), the sulfur content in the Diesel products will be reduced gradually from the current 2500 ppm to 500 ppm in 2021 and 50 ppm in 2025, as shown in the following table:


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Editor’s note: This paper was originally prepared during a 6-month long Graduate-Level Competency Development/Capacity Building Program developed by PT Mitrata Citragraha, and led by Dr. Paul D. Giammalvo to prepare candidates for AACE CCP or other Certifications.  https://build-project-management-competency.com/our-faqs/ 

How to cite this paper: Purwadi, A. (2023). Determining Performance Contractor’s Work Using Earned Value Methods in Pertamina FFED Dumai, Cilacap & Kasim in Indonesia; PM World Journal, Vol. XII, Issue VIII, August. Available online at https://pmworldlibrary.net/wp-content/uploads/2023/08/pmwj132-Aug2023-Purwadi-Determining-Performance-Contractors-Work-Using-Earned-Value.pdf   

About the Author

Achmad Purwadi, CCP

West Java, Indonesia


Achmad Purwadi, CCP is a Senior Quantity Surveyor with twenty-eight (28) years (since 1993 – Present) of experience in the Construction Industry, Oil & Gas Refinery, and petrochemical development Projects. He is currently working as a Senior Quantity Surveyor. Having a strong interest in the energy industry (Oil and Gas). Holding a Bachelor’s degree in Civil Engineering from Institut Teknologi Bandung (ITB) and Master of Structural Engineering from Universitas Indonesia (UI), he attended a distance learning mentoring course under the supervisory of Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitratata Citragraha (PTMC/APMX), to attain Certified Cost Professional certification from AACE International.

Achmad Purwadi, CCP lives in Bogor, West Java, Indonesia, and can be contacted at dadijkt@gmail.com.

[1]ESDM. (2018). Hingga 2030, Permintaan Energi Dunia Meningkat 45 %. KEMENTERIAN ENERGI DAN SUMBER DAYA MINERAL REPUBLIK INDONESIA. https://www.esdm.go.id/id/media-center/arsip-berita/hingga-2030-permintaan-energi-dunia-meningkat-45-
[2] EIA Expects Energy Demand to Increase Almost 50 Percent Worldwide by 2050. (2021, October 26). EIA Expects Energy Demand to Increase Almost 50 Percent Worldwide by 2050
[3] Indonesia-investments. (2022). Pertamina. INDONESIA-INVESTMENTS REPUBLIK INDONESIA. https://www.indonesia-investments.com/id/bisnis/profil-perusahaan/pertamina/item341
[4]Pertamina. (2020). Pertamina. Kegiatan Usaha Hulu. https://www.pertamina.com/id/hulu
[5]Pertamina. (2020). Pertamina. Refining & Petrochemical Subholding. https://www.pertamina.com/id/refining-petrochemical-subholding