Pertamina supports NZE realization through decarbonization initiatives

Jakarta (ANTARA) - State-owned energy company PT Pertamina committed to support the Indonesian government to achieve net zero emissions (NZE) by 2060 through the decarbonization initiatives program currently implemented by the company.

Senior vice president of strategy and investment at Pertamina Daniel S Purba conveyed this information during an ASEAN Panel Discussion on the sidelines of COP27 in Sharm el-Sheikh, Egypt on Friday (November 11, 2022).

At the discussion, Purba delivered a presentation on "Decarbonizing the ASEAN Way Harnessing the Collective Actions of ASEAN Private Sectors Driving Net-Zero: Pertamina's Overarching Plan in Decarbonization".

He explained that Pertamina as a state-owned energy company has the responsibility to provide energy needs in Indonesia -- a country with a population of nearly 300 million people with high energy demand.

"At the same time, Indonesia has a strong commitment to achieve net zero emissions by 2060, and Pertamina as a state-owned company fully supports this commitment," Purba said.

"Pertamina has now developed a clear program for efforts to achieve the target of net zero emissions by 2060, even more ... if possible, we want to reach the target faster by 2050," he added.

He further added that Pertamina views the energy transition effort as a good opportunity to build a green business.

Such a view, according to him, is part of the main mission to ensure the company remains sustainable and grows in line with efforts to fulfill the commitment to achieving net zero emissions through a detailed decarbonization program in accordance with the company's well-prepared NZE roadmap.

"Pertamina has prepared a decarbonization plan especially for its existing businesses, for instance by reducing gas flaring, using renewable energy in all of our activities both upstream, production sites, shipping transportation and even batteries," Purba pointed out.

In addition, regarding the implementation of Environmental Social and Governance (ESG) aspects, Pertamina is currently at the medium risk level and at the second place for the category of the best ESG score in the oil and gas industry, based on Sustainalytics -- an ESG rating agency that has conducted assessment towards the company.

Meanwhile, stakeholders, investors, rating agencies and insurance companies are also interested in finding out and learning about how Pertamina -- as an oil and gas company -- manages ESG aspects in its efforts to produce sustainable energy.

At the ASEAN Panel Discussion of the COP 27, Purba said that a number of ASEAN countries actually have considerable energy resource potential, such as to produce LNG and gas.

He mentioned ASEAN countries that have such a potential including Indonesia, Malaysia, Thailand and Brunei Darussalam.

He also revealed that the low carbon energy transition is a very good practice to be implemented by ASEAN countries in order to reduce the carbon footprint in the region.

Furthermore, still on the effort of reducing carbon footprint, Purba highlighted that Indonesia owns many forests that have the potential to be utilized in the aspect of nature based solutions.

"Therefore, collaboration (among ASEAN countries) can be a brilliant idea because each country has a different position and potential so we hope that the collaboration can establish a carbon market in the ASEAN region," he stated.

"However, this certainly requires concrete steps from all parties so that we can really collaborate together to achieve the net zero emission target," he concluded.