Maximizing the Kalimantan's Forests Potential, Pertamina NRE - East Kalimantan Provincial Government in Ready to Develop Green Economy Project
Jakarta, September 30, 2023 - Pertamina New & Renewable Energy (Pertamina NRE) and the East Kalimantan Provincial Government have signed a cooperation agreement for the Green Economy Project development in East Kalimantan. The agreement was signed by Governor of East Kalimantan, Dr. H. Isran Noor, and CEO of Pertamina NRE, Dannif Danusaputro, at the Grand Sahid Jakarta Hotel (9/30).
This joint agreement would explore cooperation potential to support the green economic transformation in East Kalimantan Province. Through this collaboration, Pertamina and East Kalimantan Province can develop aspect of energy transition in Indonesia, including the Nature-Based Solutions (NEBS) development and other environmentally friendly green energy and sustainable activities.
Pertamina NRE, as a key player in Indonesia’s energy transition, has completed the feasibility study phase for NEBS projects in several concessions in Kalimantan and is moving towards commercialization. Moreover, Pertamina NRE is taking the carbon business seriously by becoming the leading and largest provider in the recently inaugurated carbon trading market by President of Indonesia Joko Widodo on September 26.
"With this cooperation, we hope to set a milestone for the green economy and NEBS projects in East Kalimantan. We expect the collaboration between Pertamina NRE and the East Kalimantan Provincial Government to be solid, and we can move forward with concrete steps," said Dannif Danusaputro, CEO of Pertamina NRE.
NEBS is a solution to mitigate climate change through sustainable natural resource management and utilization. Approaches include preventing or reducing deforestation and engaging in reforestation. "NEBS is one of the sources to generate tradable carbon credits," Dannif added.
Governor of East Kalimantan, Isran Noor, welcomed this cooperation. "We hope this cooperation can benefit both the people of East Kalimantan and Indonesia as a whole," Isran said.
This strategic cooperation is expected to be closely monitored and supervised, and its implementation is expected to be expedited because the world needs to address global warming urgently. "We must start now; we cannot afford to be late, and this cooperation must be implemented promptly with tangible actions because we have enormous potential as the owner of the world's largest tropical forests," Isran added.
Kalimantan's forests are one of the world's lungs due to their vast area and are one of the largest tropical forests globally. Tree growth in tropical forests is three times faster than in non-tropical forests, making them more effective at absorbing CO2.
The development of NEBS projects has many positive impacts, including climate change control, biodiversity conservation, indigenous communities residing in concession areas protection, and ensuring food security, especially for the local communities.
Fadjar Djoko Santoso, Vice President of Corporate Communication of PT Pertamina (Persero), expressed Pertamina's commitment to supporting Net Zero Emission in line with the government's goals. This aspiration is achieved through two strategic initiatives: business activities decarbonization and building new environmentally friendly businesses.
“One of Pertamina’s actions to realize these two strategic initiatives is establishing a sub-holding company focused on the transition energy and green energy business, Pertamina New & Renewable Energy (Pertamina NRE)," Fadjar explained.
Pertamina NRE has a vision of energizing people and the planet with green energy. To achieve this, Pertamina NRE has three strategic pillars: low-carbon solutions, renewable energy, and new business development. Under the low carbon solutions pillar, Pertamina NRE initiatives include natural gas-based power plants, NBS, and energy conservation. The renewable energy pillar includes geothermal, solar, biogas, wind, and tidal energy. The third pillar, new business development, covers clean hydrogen, battery ecosystems, electric vehicles, and carbon trading.