Accelerating Sustainable Energy Transition, Pertamina Strengthens Low-Carbon Business

Baku, November 12, 2024 – PT Pertamina (Persero) is strengthening its low-carbon business to support Indonesia’s energy transition goals. This effort underscores Pertamina’s commitment to advancing innovation and technology to reduce emissions across its business processes.

Indonesia’s Special Envoy for COP29, Hashim Djojohadikusumo, emphasized the government’s full support for state-owned enterprises (SOEs) to achieve energy transition targets. Hashim highlighted the importance of global collaboration in addressing climate change.

“We are here with a shared goal—to save the planet for future generations. Under President Prabowo’s leadership, Indonesia is fully committed to accelerating the national energy transition, not only to reduce emissions but also to balance economic growth with environmental sustainability,” said Hashim.

John Anis, the CEO of Pertamina New and Renewable Energy (PNRE), reaffirmed Pertamina’s commitment during his presentation at the CEO Climate Talks on COP29’s first day. He stressed Pertamina's role in supporting decarbonization in Indonesia and accelerating the Net Zero Emission (NZE) 2060 target through clean energy initiatives.

“Pertamina has a significant mandate from the government to drive low-carbon business and decarbonization in Indonesia. This is not an easy task, but we have taken concrete steps to invest in low-emission businesses while strengthening legacy operations to create a cleaner planet,” said John Anis.

As of now, Pertamina has successfully reduced 8.5 million tons of CO2 emissions from Scope 1 & 2 emissions since 2010. The company aims to improve these figures through collaboration and technological innovation, focusing on biofuel development, geothermal energy, and low-carbon technologies such as CCS (Carbon Capture and Storage) and CCUS (Carbon Capture, Utilization, and Storage).

John Anis also outlined Pertamina’s efforts to expand its renewable energy portfolio, including bioethanol and battery development for electric vehicles and charging ecosystems for two-wheelers.

“We see great potential in the geothermal sector, with our current installed capacity at 672 MW. Our subsidiary, PGE, aims to increase this capacity to 1.4 GW by 2029. We believe geothermal energy will be a vital pillar in the energy transition,” he added.

In the hydrogen sector, Pertamina is reducing production costs through technological innovation, such as optimizing electricity utilization in the electrolysis process. It could lower costs by up to 30%. “We hope this technology will be implemented next year, enabling us to produce green hydrogen at more affordable costs,” John Anis explained.

He also emphasized that achieving the shared energy transition goals requires inclusive financing access and support from all stakeholders.

“To realize this transition, we cannot do it alone. Collaboration is crucial. We also need the government’s support, including incentives to encourage investments in renewable and low-carbon energy,” concluded John Anis.

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.