Pertamina and Bakrie Group to Develop Sustainable Research Infrastructure in IKN

Jakarta, March 27, 2024 - Pertamina and Bakrie Group have agreed to develop a Shared Hub Infrastructure, a part of the Nusantara Knowledge Hub in the Capital of Nusantara (IKN). The agreement is outlined in a memorandum of understanding (MoU) signed by the President Director of PT Pertamina (Persero), Nicke Widyawati, and CEO of Bakrie and Brothers, Anindya Bakrie, in Jakarta, on Tuesday, March 26, 2024. The signing ceremony was attended by the Head of the Nusantara Capital Authority (OIKN), Bambang Susantono, the management of Pertamina and Bakrie Group, and the Deputy Heads of OIKN. This MoU signing is a continuation of the Joint Statement of Collaboration signed at Stanford regarding plans for collaboration in research in the sustainability sector to be conducted by Stanford in Indonesia, in the presence of the President of the Republic of Indonesia, Joko Widodo, last November.

President Director of Pertamina, Nicke Widyawati, stated that Indonesia, with its abundant natural resources and growing population, has significant potential to continue leading the energy transition in line with global trends.

"Pertamina has a strong commitment to driving sustainability in Indonesia. This collaboration scheme is very attractive because it involves synergy between state-owned enterprises, private sector, and world-class universities. Thus, it is not just about constructing physical buildings, but it can also become the foundation for Indonesia," Nicke said.

According to Nicke, the national emission reduction target is realized through concrete targets, which are 31.89% in 2030, and with international support, the target reaches 43.20%.

Nicke added that based on research by Bloomberg New Energy Finance (BNEF), Indonesia, with its rich natural resources, particularly biomass, could attract global investors with a value of USD 3.5 trillion in the environmentally friendly energy sector.

"Addressing the energy transition potentials and challenges requires increasing collaboration with all stakeholders. This development will be a key driver for the new capital city's sustainable and environmentally friendly development," Nicke added.

CEO of Bakrie & Brothers, Anindya Bakrie, said, "The development of the Shared Hub for the International Institute of Sustainability Indonesia (IISI) is a joint commitment to advance education and promote green economic development in Indonesia. To support the government in achieving the Net Zero Emission target by 2060, Bakrie Group has expanded its business into sustainable sectors, such as transportation electrification and renewable energy."

"Education plays a crucial role in supporting Indonesia's new era in IKN. The IISI will be a place for various research activities, including research conducted by the Stanford Doerr School of Sustainability (SDSS), and will lay the groundwork for the establishment of higher education institutions contributing to sustainable development innovation and the utilization of clean energy," Anindya added.

According to Anindya, the IISI will be a collaboration platform between the private sector and government, as well as the global and Indonesian academic communities. This project is targeted to be groundbreaking in IKN in the second quarter of 2024.

In line with this, the Head of the Nusantara Capital Authority (OIKN), Bambang Susantono, revealed that this collaboration is in line with the spirit of the Nusantara Capital to become a 'living lab,' or a living laboratory for the latest scientific knowledge for sustainable development.

"I appreciate today's collaboration between SOE and the private sector to support the Knowledge Hub development in IKN," said Bambang Susantono, Head of the Nusantara Capital Authority (OIKN).

This development collaboration focuses on three main aspects. The first aspect concerns the Development of the Shared Hub Infrastructure, which will be built in the strategic locations within the Edutown IKN area and will be part of the Nusantara Knowledge Hub. This location will be a center for knowledge exchange, including being an innovation climate ecosystem.

The second aspect of this collaboration will cover research on Critical Minerals Based on Artificial Intelligence. Critical minerals have significant uses and no suitable substitutes, but they face potential supply disruptions, making them defined as critical to the economy and national security. Research on critical minerals using artificial intelligence-based exploration technology will contribute to sustainable resource management practices.

The third aspect concerns research on an Integrated Roadmap, an integrated approach to ensure alignment with the comprehensive principles of IKN development as a "forest city," prioritizing sustainable development and harmonious coexistence with nature. These aspects will contribute to achieving sustainable development goals and net zero emission targets in Indonesia.

At the same time, Subholding Pertamina New Renewable Energy (PNRE) and PT VKTR Mobility Technology Tbk (VKTR) are also collaborating to develop an electric vehicle (EV) ecosystem. This collaboration commitment is realized through a Heads of Agreement (HoA) by the President Director of PNRE and the President Director of VKTR.

In this collaboration, PNRE and VKTR will develop e-Maas (electric Mobility as a Service) as an innovation towards a large-scale EV ecosystem transition. e-Maas will also be a solution for emission reduction and a program supporting decarbonization.

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.**