Pertamina Energy Forum 2023: Encourage Collaboration to Face the Energy Trilemma

Jakarta, December 19, 2023 - PT Pertamina (Persero) continues to push for national and global collaboration to tackle the energy trilemma challenges. As a national Energy State-Owned Enterprise, Pertamina focuses on three strategic issues: Energy Security, Energy Affordability, and Environmental Sustainability.

It was emphasized by the President Director of Pertamina, Nicke Widyawati, during the Pertamina Energy Forum (PEF) 2023 held in Jakarta on Monday, December 18, 2023.

While opening the PEF 2023 event, Nicke Widyawati outlined that all countries share the same target to achieve net-zero emissions by 2050 or 2060, depending on each country's situation.

"After all countries committed to reducing carbon emissions towards net-zero emissions, there is optimism, hesitation, and concern. However, this does not deter us from continuing energy transitions as agreed upon," Nicke expressed during the Pertamina Energy Forum 2023 at the Grha Pertamina Ballroom (18/12).

Regarding energy security, Nicke mentioned that the latest World Energy Council reports Indonesia is ranked 53rd globally. In terms of energy security, the world's average score is 58 (C), while Indonesia stands at 66 (A). It means Indonesia's energy resilience is better than the global average. Even many developed countries score below Indonesia.

Furthermore, she stated that the COVID-19 pandemic and the Russia-Ukraine geopolitical conflict have significantly impacted energy availability in various countries worldwide. However, this has not significantly affected Indonesia.

"We can see there is no significant impact on energy supply. We all remain comfortable, able to access energy at an affordable price with various existing policies," Nicke added.

Furthermore, regarding energy equity, Nicke highlighted the need for the energy sector to drive Gross Domestic Product (GDP) growth by providing fair and equitable energy accessibility. The energy sector is also expected to drive industrialization and absorb labor, which can enhance GDP and purchasing power. Meanwhile, in terms of environmental sustainability, Nicke said that Indonesia currently holds a score of 63.1, while the world's score is 66.

During the same event, the Special Staff of the Minister of State-Owned Enterprises, Prof. Dr. Mohamad Ikhsan, S.E., discussed the challenges and the role of the energy sector in achieving Indonesia Emas 2045 (Golden Indonesia 2045). Indonesia must achieve significant growth to escape the Middle-Income Trap (MIT) before 2045. Gas can be optimized as the primary energy source during the energy transition. Solutions to fulfill gas energy needs include maintaining exports and imports and establishing a trading center in Indonesia.

The Member of the National Energy Council, Dr. Satya Widya Yudha, M.Sc., addressed Indonesia's energy resilience in facing climate change. There are four indicators of Indonesia's energy resilience: availability, accessibility, affordability, and acceptability. In the national energy policy update, there is a grand strategy to maintain energy resilience during the energy transition, which is maximizing renewable energy and minimizing fossil fuel usage (coal and gasoline).

At this year's PEF, Pertamina also launched the Pertamina Energy Outlook 2023, themed "Navigating Indonesia's Energy Transition: Climate Related Risk & Opportunity." During the launch, Henricus Herwin, Senior Vice President of Strategy and Investment of Pertamina, mentioned that Pertamina's energy outlook will develop three scenarios to account for uncertainties in economic growth rates and energy transition rates: the Ordinary State, Appropriate Sustainability, and Economic Renaissance scenarios.

The Ordinary State scenario is based on economic growth conditions not far from Indonesia's historical trends, where structural changes are still needed to elevate its status from a middle-income country. Next, the Appropriate Sustainability scenario involves Indonesia continuing its commitment to energy transition through green energy implementation, in line with economic growth. Finally, the Economic Renaissance scenario occurs when Indonesia succeeds in becoming a high-income country with a high gross domestic product, impacting energy demand and receiving technological breakthroughs capable of significantly reducing emissions.

These three scenarios are built on their respective levels, where the Economic Renaissance falls into the highest scenario. Meanwhile, Ordinary State and Appropriate Sustainability fall into the low scenario. Pertamina's energy outlook also considers Indonesia's energy mix implications by 2060, such as coal, oil, gas, and renewable energy development.

In line with Henricus, VP of Pertamina Energy Institute, Hery Haerudin, outlined Pertamina's energy outlook concerning transportation roadmap models like EVs, biofuels, and gas fuels. There is also a gas blend in the power sector due to its lower CO2 emissions. Pertamina also pursues a mix of renewable energy in the power sector, like solar, nuclear, and wind energy potential. Additionally, they execute Carbon Capture Storage/Carbon Capture Utilization and Storage.

Pertamina Energy Outlook 2023 provides a quantitative overview of several energy demand scenarios in Indonesia's future and carbon emissions until 2060, based on macroeconomic trends, government vision, and business perspectives.

The Pertamina Energy Outlook 2023 is expected to serve as a reference and contribute positively to policymakers, stakeholders in the business world, investors, researchers, and energy enthusiasts regarding various possibilities and development opportunities for Indonesia's energy in the future.

This annual Pertamina forum featured keynote speakers namely, Member of the National Energy Council, Dr. Satya Widya Yudha, M.Sc, and Special Staff of the Minister of State-Owned Enterprises, Prof. Dr. Mohamad Ikhsan, S.E. Also present in the forum were Sugeng Suparwoto, Chairman of Commission VII of the Indonesian House of Representatives, representatives from the Ministry of Energy and Mineral Resources, Ministry of State-Owned Enterprises, SKK Migas, leaders of both national and international companies, and energy practitioners in Indonesia.

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, and Governance (ESG) implementation across all Pertamina's business lines and operations.