IDX Carbon Officially Launched, Pertamina Is the Sole Seller Listed on the Indonesian Carbon Market

Jakarta, September 26, 2023 - As part of its commitment to supporting sustainability and energy transition agendas in Indonesia, Pertamina participated in the IDX carbon market launch, known as IDXCarbon, on Tuesday (26/9). IDXCarbon was inaugurated by the President of the Republic of Indonesia, Joko Widodo.

In addition to President Joko Widodo, the event was attended by the Coordinating Minister for Maritime Affairs and Investment of the Republic of Indonesia, Luhut Binsar Panjaitan; the Chairman of the Financial Services Authority, Mahendra Siregar; and the CEO of the Indonesia Stock Exchange, Iman Rachman. The IDXCarbon launch event was also attended by Nicke Widyawati, President Director of Pertamina; Dannif Danusaputro, CEO of Pertamina NRE; and Fadli Rahman, Director of Strategic Planning and Business Development of Pertamina NRE, representing the carbon credit sellers. Also present, Wiko Migantoro, President Director of Pertamina Hulu Energy; Riva Siahaan, President Director of Pertamina Patra Niaga; and Chinthya Theresa, Director of Pama Persada, represented the carbon credit buyers.

"This is a significant and strategic milestone for Pertamina as it represents our commitment to accelerating the energy transition towards Net Zero Emission. So, in this first carbon trade, the carbon units sold are from Pertamina New & Renewable Energy, specifically from the Lahendong Geothermal Power Plant Units 5 and 6. Unlike in other countries where it takes 3-4 months to complete a transaction, ours sold out immediately; the units are already gone. Therefore, the market has responded well," said Nicke Widyawati, President Director of Pertamina.

Nicke added that compared to neighboring countries, the Indonesian Carbon Exchange is moving swiftly with substantial volume. "We should take pride in this. And I invite all levels and subsidiaries to actively contribute to and play a role in all Indonesia's Net Zero Emission programs because the Pertamina group plays a crucial role in achieving this. Today, the President has conveyed that this is a tangible manifestation. It is not just a plan for Pertamina. But we are taking concrete steps, and today is one of the concrete pieces of evidence where the Pertamina group is driving the energy transition towards Net Zero Emission by 2060," she continued.

Pertamina New and Renewable Energy (Pertamina NRE), a subsidiary of Pertamina and the carbon market aggregator within the Pertamina Group, is the only seller transacting on IDXCarbon during today's launch. Pertamina NRE holds carbon credits from the Lahendong Geothermal Power Plant Units 5 and 6, totaling approximately 864 thousand tCO2e, generated in 2016 to 2020. These carbon credits have met the national standards set by the Ministry of Environment and Forestry.

Quoting IDX's website, among the companies that acted as buyers of Carbon Units on the inaugural IDXCarbon trading day were PT Bank Central Asia Tbk, PT Bank CIMB Niaga Tbk, PT Bank DBS Indonesia, PT Bank Mandiri (Persero) Tbk, PT BNI Sekuritas, PT BRI Danareksa Sekuritas (a subsidiary of PT Bank Rakyat Indonesia (Persero) Tbk), PT CarbonX Bumi Harmoni, PT MMS Group Indonesia, PT Multi Optimal Riset dan Edukasi, PT Pamapersada Nusantara, PT Pelita Air Service, PT Pertamina Hulu Energi, PT Pertamina Patra Niaga, PT Truclimate Dekarbonisasi Indonesia, and PT Udara Untuk Semua (Fairatmos).

"The carbon business development, including carbon trading and project development, is one of Pertamina NRE's priorities in supporting Pertamina's Net Zero Emission strategy and Indonesia's sustainability and energy transition aspirations. In addition to carbon credit projects from geothermal power plants managed by our subsidiary, PT Pertamina Geothermal Energy Tbk, in the medium term, we are also developing nature & ecosystem-based solutions (NEBS) projects, including through cooperation with nine forestry concessions with Perhutani," said Dannif Danusaputro, CEO of Pertamina NRE.

Pertamina will continue to collaborate with various stakeholders to build a strong, transparent, and trustworthy carbon market and ecosystem in Indonesia, following the national sustainability aspirations.

Pertamina NRE is firmly committed to supporting sustainable development goals. It is evidenced by its recent environmental, social, and governance (ESG) rating of 13 from Sustainalytics, a global ESG rating agency, indicating low risk and ranking as the third-best in the world in the independent power producer and traders (IPP & traders) sector.**