Indonesia’s Pertamina and Japan’s NEXI to Jointly Collaborate on Trade Insurance and Credit Facility to Expedite Energy Transition Initiatives
Tokyo, 15 December 2023 – PT Pertamina (Persero) of Indonesia and Nippon Export and Investment Insurance (NEXI) of Japan have initiated a collaborative partnership, marked by the signing of a profoundly significant Memorandum of Understanding (MOU). This accord symbolizes a concerted effort towards expediting energy transition initiatives in both Japan and Indonesia.
Ratified during the ASEAN-Japan Economic Co-creation Forum as a fundamental part of the Asia Zero Emission Community (AZEC), this occasion highlights the shared dedication of both entities to resolving crucial concerns in the sphere of energy transition. The MOU was signed by Emma Sri Martini, Director of Finance at Pertamina, and Kazuki Hondo, Managing Executive Officer and BoD at NEXI.
Through this MOU, Pertamina and NEXI sets the stage to explore potential utilization of NEXI insurance for energy transition related projects and to cooperate for wider opportunities to harness a diverse array of energy sources and technologies. The main purpose of this MOU is to establish a framework for the development of cooperative efforts between the Pertamina and NEXI which will support and encourage trade and investment between Indonesia and Japan, assist energy transition and security, and to strengthen cooperation in the fields of Pertamina’s financing needs.
In light of this groundbreaking partnership, Emma expressed her conviction, “In achieving energy security, affordability and sustainability, Pertamina is strategically steering its transition towards lower carbon operation and new renewable energy sources. However, these endeavors present challenges such as technology, capability and funding. Hence, partnering with NEXI is a collective action envisaged to address prevailing funding constraints. This collaboration aims to be a concerted effort, fostering tangible progress toward realizing a sustainable energy transition," she stated.
Emma also emphasizes the collaboration goes beyond corporate affairs since both parties aim to support government’s target in achieving Net Zero Emission (NZE) goal.
In alignment with Emma’s perspective, Hondo mirrors akin sentiments, “I expect to collaborate with Pertamina for energy transition and the project to meet the increasing demand in your country, together with the potential business opportunities for Japanese companies,” he stated.
Leveraging Pertamina's project track record and robust bilateral ties with Japan, NEXI's trade insurance and credit facilities are poised to enhancing investment activities in energy transition, aligning with the broader objectives of the Asia Zero Emission Community and the worldwide movement towards sustainable, low-carbon energy systems.
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, and Governance (ESG) implementation across all Pertamina's business lines and operations.