Pertamina Supports the NRE Bill with 8 Strategic Initiatives

Jakarta, April 29, 2021 - PT Pertamina supports the existence of the Draft Bill on New and Renewable Energy (NRE) to ensure that 8 (eight) green transition strategic program initiatives run well.

The regulation aims by the House of Representatives and the Government to accelerate NRE use in Indonesia is being prepared. The bill is listed in the DPR's 2021 national legislation program (Prolegnas) and is targeted for completion this year.

"Several trends in the Oil & Gas sectors have accelerated, especially for low carbon focus & policies with the growing demands for ESG and green financing which have accelerated the energy transition to NRE," said President Director of Pertamina, Nicke Widyawati.

While waiting for the NRE Bill, Pertamina will continue its steps in developing NRE with 8 initiatives. First, utilizing the large potential of palm oil to invest in the Green Refinery Project in Plaju, Dumai, and Cilacap. Pertamina produces Biodiesel 30 and Green Diesel D-100 from palm oil, other renewable oils, and used cooking oil through the best process.

Second, Pertamina is also developing a biomass project into biogas and bioethanol in Sei Mangkei. With the great potential of microalgae in Indonesia's vast waters and the capability of producing the 3rd largest algae in the Asia Pacific economic region, Pertamina will use microalgae as materials for producing biofuels. Pertamina has successfully developed a 5000-liter microalgae photobioreactor facility and is underway to reach commercial-scale cultivation and production by 2025.

Third, Pertamina has pioneered the use of geothermal energy in Indonesia with a total capacity of 1.8 Giga Watt (GW).

Fourth, Pertamina is also running the initiative to use green hydrogen with electricity in geothermal areas with a total potential of up to 8,600 KG per day. Green Hydrogen will be initiated at the Ulubelu Geothermal Plant for use at the Plaju Refinery Polypropylene plant.

Fifth, collaborating with other SOEs, namely Inalum, Antam, and PLN, Pertamina plans to develop the ecosystem of EV Batteries in IBH, which will move from mining to recycling.

Sixth, Pertamina optimizes the use of gas for transportation, household, and industrial needs throughout Indonesia. Currently, Pertamina has developed an integrated gas infrastructure with a Floating Storage Refinery Unit (FSRU) and more than 10,000 km of gas pipes in Indonesia and is the longest pipeline in Southeast Asia. Pertamina is also strengthening gasification at refineries and generators. It includes regasification in Cilacap, Teluk Lamong Terminal, Badak LNG, and 52 other generators. To support PLN's power plants, the company will convert power plants that still use diesel to gas.

Seventh, for power plants, Pertamina continues to increase new and renewable energy through solar power plants in various operating areas.

Eighth, for an inclusive circular carbon economy approach, Pertamina will apply Carbon, Capture, Use, and Storage or CCUS to several oil and gas fields to increase production.

"Pertamina has a strong commitment to the development of EBT. In the RJPP, Pertamina has set a target of EBT which in 2035 the portion will reach 30%. With these 8 initiatives, we are sure that the target can be achieved," concluded Nicke.**

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