Thursday, November 14, 2024

Pertamina to strengthen low-carbon business in support of energy transition

Reading Time: 2 minutes
Renold Rinaldi

Journalist

Editor

Interview

State-owned energy company PT Pertamina is strengthening its low-carbon business to support the government’s energy transition target through innovation and utilization of advanced technology to reduce carbon emissions throughout its business processes.

In a series of CEO Climate Talks events at COP29, at Azerbaijan, on Monday, November 11, 2024, IndonesianSpecial Envoy for COP29, Hashim Djojohadikusumo, emphasized that the Indonesian government supports the measures taken by state-owned enterprises, such as Pertamina, in achieving the energy transition target, simultaneously calling for the importance of global collaboration to address the climate crisis.

“We all have one common goal, which is to save this planet for future generations. Indonesia is fully committed to accelerating the energy transition, not only to reduce emissions, but also to create a balance between economic growth and environmental sustainability,” Hashim said in a media statement obtained by Indonesia Business Post.

CEO of Pertamina New and Renewable Energy (PNRE),John Anis, said in his presentation at COP29 that Pertamina is committed to supporting decarbonization in Indonesia and accelerating the achievement of Net Zero Emission (NZE) by 2060.

Pertamina has taken concrete steps in developing clean energy, including the implementation of biofuels, geothermal energy, and low-carbon technologies such as Carbon Capture and Storage (CCS) and Carbon Capture, Utilization, and Storage (CCUS). Since 2010, Pertamina has succeeded in reducing emissions by 8.5 million tons of CO2 from Scope 1 and 2 emissions.

“Pertamina has a mandate from the government to be the main driver in low-carbon and decarbonization businesses in Indonesia. This is not an easy task, but we have invested in low-emission businesses and strengthened our legacy businesses for the sake of a cleaner earth,” John Anis said.

Pertamina is also expanding its renewable energy portfolio through the development of bioethanol, batteries for electric vehicles, and charging infrastructure. In the geothermal sector, Pertamina has achieved an installed capacity of 672 MW and is targeting an increase of up to 1.4 GW by 2029. According to John Anis, geothermal will be the main pillar in Pertamina’s energy transition strategy.

In addition, Pertamina is also focusing on hydrogen production by reducing costs through technological innovation. “We hope this technology can be realized next year so that it will enable the production of green hydrogen at a cost of up to 30 percent lower,” he added.

John Anis emphasized that energy transition requires major investment support and collaboration from various parties. 

“We need government support, including incentives that can encourage investment in the renewable and low-carbon energy sectors,” he said.

Renold Rinaldi

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

President Director of PT Bank Negara Indonesia (BBNI), Royke Tumilaar, has revealed that tight liquidity in the Indonesian banking sector is influenced by various external factors, the prime one is the prospect of US interest rate policy under the Donald Trump administration, which is expected to make it difficult for The Fed to lower interest rates.
The government’s decision to raise the value added tax (VAT) in 2025 will not be altered, with Minister of Finance Sri Mulyani Indrawati confirming that the VAT rate will rise from 11 percent to 12 percent starting from January 1, 2025.
President Prabowo Subianto welcomes American software and fabless company NVIDIA to get involved in the development of Indonesia’s computer-generated technology and application system for the sake of the nation’s future best.
The attack by two F-16 jetfighters of the Indonesian Air Force on the Air Defense Artillery system of the enemy marked the start of the Joint Amphibious Operation carried out by 300 combined landing troops consisting of Indonesia Navy’s Marine Amphibious troops and troops from the Australian Army’s 1st Combat Ground Infantry Batallion.
The central government is expected to appoint an acting Governor of South Kalimantan soon following the resignation of Sahbirin Noor due to problems with the Corruption Eradication Commission (KPK). The appointment is crucial as Vice Governor Muhidin, is contesting the upcoming regional election.
State-owned construction company PT PP (PTPP) has secured Rp24.4 trillion (US$1.5 billion) in new contracts. A large portion of these contracts, 41.24%, comes from government-funded projects, followed by state-owned enterprises (SOEs) projects at 30.76%, and private sector projects at 28%.