Pertamina Allocates USD 5.7 Billion for Renewable Energy Development Through 2029

November 12, 2024 – Pertamina has allocated 8 percent of its total investment budget through 2029, approximately USD 5.7 billion, to develop new and renewable energy (NRE). This statement was made by the Chief Executive Officer of Pertamina New & Renewable Energy (Pertamina NRE), John Anis, at the Indonesia Pavilion COP29 in Baku, Azerbaijan (November 11).

The renewable energy developments funded by this budget include geothermal, bioethanol, green hydrogen, solar power, wind energy, biomass energy, battery, and carbon-related businesses.

“Pertamina has prepared a substantial investment in renewable energy development. It is part of our strong commitment to support Indonesia’s enhanced nationally determined contribution. We believe that significant targets require breakthrough efforts,” said John during his presentation.

This investment aims to facilitate Pertamina’s low-emission business growth while supporting Indonesia’s net zero emission target by 2060. Pertamina has set four aggressive targets through 2029, including 60 million kiloliters (KL) of biofuel sales, 5.5 KL of petrochemical production, 1.4 gigawatts (GW) of installed geothermal capacity, and a 1.5 million ton CO2 equivalent reduction through carbon capture and storage (CCS/CCUS).

Pertamina has implemented biofuel initiatives, offering biodiesel products to the public since 2015. Currently, Pertamina is also supporting the government by developing bioethanol-based eco-friendly gasoline. Through a pilot project, Pertamina launched Pertamax Green 95 last year, blending gasoline with 5 percent bioethanol. Through its subsidiary Pertamina NRE, Pertamina is partnering with PT Sinergi Gula Nusantara to build a bioethanol plant in Banyuwangi, with an annual production capacity of 30,000 KL.

For geothermal energy, Pertamina’s current installed capacity is 672 megawatts (MW). Following the initial public offering (IPO) of PT Pertamina Geothermal Energy Tbk in February 2023, Pertamina has aggressively pursued opportunities to double its geothermal capacity by 2029.

Pertamina’s commitment to supporting the government’s net zero emission target is evident. Between 2020 and 2023, Pertamina reduced 8.5 million tons of CO2 equivalent emissions, a 34 percent decrease in Scope 1 and 2. In Scope 3, Pertamina successfully reduced emissions by 32.7 million tons of CO2 equivalent through biofuel implementation in 2023.

Pertamina’s commitment to environmental, social, and governance (ESG) aspects is also reflected in its ESG score of 20.7, as assessed by a global ESG rating agency. This score places Pertamina as a leader in the integrated oil and gas sub-industry.

“Pertamina’s corporate strategy reflects strong support for energy transition. However, strong commitment alone is not enough. Strong support from all stakeholders is also essential for achieving national decarbonization,” added John.

VP of Corporate Communication of Pertamina, Fadjar Djoko Santoso, explained that Pertamina aims to strengthen Indonesia’s position in the global fight against climate change. This initiative aligns with Pertamina’s clean energy roadmap, continuously encouraging innovative steps toward a more sustainable energy future.

“We aim to be pioneers in energy transition, make tangible contributions to sustainability efforts, and serve as a catalyst for Indonesia in achieving a greener energy future. Through various forums and collaborations, we want to demonstrate that Indonesia can lead on the global stage in climate change mitigation,” said Fadjar.

In addition to ambitious aspirations for net zero emissions, Pertamina consistently demonstrates its strong commitment to supporting national energy resilience. It is realized through Pertamina’s dual growth strategy, where Pertamina is maximizing growth in its existing oil and gas business to ensure energy security for national economic growth while aggressively building a low-emission business.

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 Pertamina’s business lines and operations.**