Energy Transition Era: This Is How Pertamina Prepares Scenarios to Face Energy Challenges

Kuala Lumpur, June 28, 2023 - As a State-Owned Enterprise (SOE) in the energy sector, PT Pertamina (Persero) is intensifying its efforts to develop energy transition initiatives. This step has become Pertamina's priority in achieving national energy resilience, accessibility, affordability, acceptability, and sustainability.

During the Leadership Dialogue Energy Asia forum in Kuala Lumpur, Malaysia (Wednesday, 28/6), the President Director of PT Pertamina (Persero), Nicke Widyawati, revealed that to maintain energy resilience and ensure affordability, Pertamina is adopting a strategy of maintaining its oil and gas business while also exploring renewable energy potential.

Nicke stated that Pertamina is implementing decarbonization in its operational activities to reduce emissions. "This is to ensure that in the short term, the energy transition will not disrupt energy resilience. However, on the other hand, we can still achieve carbon emission reduction targets," said Nicke.

In parallel with that, Nicke continued, Pertamina is also building and strengthening gas infrastructure throughout the value chain, from upstream to downstream, following the Government's target to gradually increase the share of gas in the energy mix. With a territory of 17,000 islands, gas infrastructure development is expected to improve accessibility for the entire population.

"Therefore, accelerating the energy transition in Indonesia is not only an effort to reduce carbon emissions but also to achieve energy resilience," said Nicke. 

In the energy transition era, countries in South Asia, including Indonesia, have great opportunities as they are blessed with abundant green primary energy sources. These resources can be utilized to develop a low-carbon business ecosystem.

To achieve this, Pertamina has allocated 15% of its total Capex for low-carbon/green business portfolio development, significantly higher than other energy companies’ average. 

"Several initiatives that we have implemented and will continue to carry out include decarbonization and energy efficiency, which have successfully reduced carbon emissions by 31%, the Carbon Capture Storage (CCS)/Carbon Capture Utilization and Storage (CCUS) technology implementation with the first CO2 injection at the Pertamina EP Jatibarang field, Green Refinery development, geothermal energy development, which has currently reached an installed capacity of 1,877 MW, biodiesel production, and others," stated the Pertamina CEO.

According to Nicke, Pertamina also involves the community by developing Energy Independent Villages in 47 villages across Indonesia. "We cannot do it alone. Therefore, we are open to global collaboration with researchers, inventors, experts from universities and academia, companies, ministries, and the community, including micro, small, and medium enterprises (MSMEs)," emphasized Nicke.

Pertamina hopes that this collaboration will provide significant economic benefits. With the increasing demand for local cultural products, MSMEs will experience increased sales and income. Pertamina believes this collaboration can create a conducive environment for the tourism sector’s growth and improve society’s welfare.

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 & Governance (ESG) implementation across all Pertamina's business lines and operations.