Pertamina supports Indonesia’s aspiration to be net zero by 2060

State-owned energy company PT Pertamina (Persero) is supporting Indonesia’s aspiration to reach net zero emissions by 2060.

Indonesia has increased its greenhouse gas (GHG) emission reduction target to 31.89%, with its efforts, and 43.20%, with international assistance, through the Enhanced Nationally Determined Contribution (NDC) document.

“In terms of emission reduction, Pertamina has set a target of 30% emission reduction in 2030, versus our 2010 baseline,” Pertamina’s President Director and CEO Nicke Widyawati said in a panel discussion of UN Climate Change Conference (COP27) in Sharm El Sheikh, Egypt, last Sunday.

In 2021, Pertamina succeeded in reducing GHG emissions by 7.4 million metric tons of carbon dioxide equivalents or 29.09% compared to the 2010 baseline.

This emission reduction is achieved by reducing non-routine emissions from the process, which is utilized for own-use fuel and gas supply to customers as much as 69.7%, using more efficient equipment which is included in Energy Efficiency Program, contributed 13.9%, using energy from low carbon source that contributes 16.2% and other activities.

In order to reach net zero aspirations, Pertamina has developed a holistic strategy via two pillars, which are the decarbonisation of its business activities and the development of new green business, as well as three enablers. These enablers are developing carbon accounting standards that already approved by national and international regulation, and also the implementation of Pertamina Internal Carbon Price, building a sustainability organization that will oversee Pertamina’s business stays on the right track for its Net Zero Roadmap goals and stakeholder engagement to fully support national NZE target and commitment.

These goals are supported by the company’s long-term investment strategy. Pertamina’s cumulative CAPEX up to 2060 for the Green Business Initiatives is estimated at around USD40 billion for biofuels, renewable energy sources, CCS/CCUS, battery and EV ecosystem, hydrogen, and carbon business.

Widyawati added that Pertamina accelerates green business development from upstream to downstream through the whole integrated value chain.

Pertamina is committed to supporting the Indonesian government’s commitment to achieving net zero by 2060 or sooner. As an energy company, Pertamina has a big responsibility to be a pillar of achieving net zero emissions in Indonesia, on the principles of affordability and fairness,” she said.