Maximizing Kalimantan Forest Potential, Pertamina NRE – PT Inhutani I Signs 30-Year NEBS Commercial Agreement

December 21, 2023 – Pertamina New & Renewable Energy and PT Inhutani I have signed a commercial agreement for the Nature and Ecosystem-Based Solutions (NEBS) project within the Forest Utilization Business Licensing (PBPH) area in North Kalimantan. This agreement will last for 30 years. Held at the Sentul Eco Edu Tourism Forest on December 18, the agreement was signed by the CEO of Pertamina NRE, Dannif Danusaputro, and Director of Inhutani I, Oman Suherman.

This signing follows the Master Cooperation Agreement that bound nine concessions of the Perhutani Group signed between Pertamina NRE and Perum Perhutani on February 20, 2023. The agreement has the potential to generate carbon credits of up to 270 thousand tons of CO2e/year based on a feasibility study conducted in July 2023.

The NEBS project aims to integrate nature-based solutions into natural resource management and environmental sustainability. Pertamina NRE and Inhutani are committed to collaborating in implementing innovative strategies focusing on ecosystem preservation, climate change mitigation, and sustainable natural resource development.

Under this agreement, Pertamina NRE will provide financial, technical, and managerial support, while Inhutani will be responsible for the direct project implementation. This partnership encompasses sustainable forest development, biodiversity preservation, and the best forestry practices application.

"We are very enthusiastic about this collaboration and believe that the NEBS project will significantly impact the environment, local communities, and biodiversity," said Dannif Danusaputro. "Through the combination of expertise and resources from both sides, we hope to create a sustainability model that can be adopted in eight other forest concessions," Dannif explained.

Pertamina NRE and PT Inhutani I believe this partnership will not only provide ecological benefits but also economic and social benefits to local communities. The project is expected to create new job opportunities, improve community welfare, and contribute to the local economy.

Kalimantan Forest is one of the world's lungs due to its vast area and is one of the largest tropical forests globally. Tree growth in tropical forests is three times faster than trees planted in non-tropical forests. This condition makes tropical forests more effective in absorbing CO2. This advantage positions Indonesia with the second cheapest potential for Nature-Based Solutions (NBS) in the world.

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, added that to accelerate low-carbon business realization, Pertamina needs to strengthen synergy and collaboration to support the Net Zero Emission target by 2060 optimally.

"As a leader in energy transition, Pertamina will continue to collaborate with various parties in building new renewable energy ecosystems to achieve national sustainability aspirations and realize the government's Net Zero Emission target by 2060," he emphasized.

Pertamina's Commitment to Support Net Zero Emission

Following the government, Pertamina also aspires to achieve net zero emissions by 2060. This aspiration is achieved through two strategic initiatives: decarbonizing its business activities and building new environmentally friendly businesses. One of Pertamina's efforts to realize these strategic initiatives is by forming a sub-holding focusing on energy transition and green energy businesses, Pertamina New & Renewable Energy (Pertamina NRE).

Pertamina NRE envisions energizing people and the planet with green energy. To achieve this, Pertamina NRE has three strategic pillars: low-carbon solutions, renewable energy, and new business development. Under the low-carbon solutions pillar, Pertamina NRE initiatives include gas-fired power plants, NBS, and energy conservation. Meanwhile, the renewable energy pillar includes geothermal, solar, biogas, wind, and tidal energy. The third pillar, new business development, encompasses clean hydrogen, battery and electric vehicle ecosystems, and carbon trading.

Pertamina NRE's ESG Management Ranked Third Best

Pertamina NRE is strongly committed to supporting sustainable development goals. Pertamina NRE has just received an environmental, social, and governance (ESG) rating of 13 from Sustainalytics, a global ESG rating agency, placing it in the low-risk category. This means that the business risks undertaken by Pertamina NRE are relatively low due to good ESG management. This rating positions Pertamina NRE as the third best in the world in the independent power producer and traders (IPP & traders) sector.

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.**