Promoting Net Zero-Emission Vision, Pertamina NRE and Perhutani Synergize Nature -Based Solutions Development
Jakarta, June 20, 2022 - Pertamina Power Indonesia, as Power & New Renewable Energy Subholding (Pertamina NRE), and Perum Perhutani synergize to accelerate Indonesia's Nationally Determined Contribution achievement by 2030 and Net Zero Emission vision within the Ministry of State-Owned Enterprises (SOE) by developing One of the Nature-Based Solution (NBS) projects, one of which is through the reducing emission from deforestation and forest degradation (REDD) scheme. This project aims to intensify forest conservation activities to reduce the greenhouse gas emissions released from the forestry sector, as well as to have a positive impact on carbon emissions absorption and environmental diversity.
This synergy was manifested in the signing of the Head of Agreement (HoA) for Cooperation in the Development of the NBS Project by the Chief Executive Officer of Pertamina NRE, Dannif Danusaputro, and the President Director of Perum Perhutani represented by the Director of Operations, Natalas Anis Harjanto at Sentul Eco Edu Tourism Forest, Bogor Regency on Monday (20/06).
The signing of the HoA was witnessed by Deputy Minister I of SOE, Pahala Nugraha Mansury, and Director of Logistics and Infrastructure of PT Pertamina (Persero), Mulyono.
This collaboration began with the signing of a Memorandum of Understanding (MoU) in December 2021, then followed up with a series of Pre-Feasibility Study (FS) work in February-May 2022, and continued with an audience with the Ministry of Environment and Forestry oenergine 7, 2022, as well as regulatory consultations through the Focus Group Discussion with the Ministry of Environment and Forestry June 15, 2022.
In his speech, Pahala Nugraha Mansury said that the NBS company formation and the collaboration between Perhutani and Pertamina NRE was one of the Ministry’of SOEs' strategic initiatives to support decarbonization. With NBS, we hope to protect the environment around us. We encourage the existence of new and renewable energy, which is related to the energy sector, considering that it is one of the largest emitters.
Furthermore, Pahala also said that Indonesia is one of the world’s lungs with its forest area and its richness of biodiversity. Indonesia is encouraged to reduce emissions, with a target of up to 29% within ten years in 2030.
"Of course, we hope that the NBS project will be able to utilize, manage, and conserve forest areas with its development potential. In this case, Perhutani and its subsidiaries act as land providers (land co) while Pertamina NRE is the manager of the NBS business through NBS co," said Pahala.
Meanwhile, Dannif said that Pertamina NRE is mandated to oversee Pertamina’s energi transition. “One of our business focuses is low carbon solutions where nature-based solutions are one of the main projects. This project has the potential to support the net-zero emission target. For this reason, we are enthusiastic about collaborating with Perhutani, which holds state forestry concessions," said Dannif.
In his speech, he also said that Pertamina NRE continues to increase EBT utilization within Pertamina and develop decarbonization solutions such as the EV ecosystem, Green Hydrogen, and energy efficiency to achieve the Pertamina Group’s emission reduction target. These efforts and collaboration with the Perhutani Group is hoped to support Pertamina's Net Zero Emission aspirations in 2060. Pertamina also plays an active role in the G20 Presidency's success, especially in the sustainable energy transition issue.
On the same occasion, Natalas said that apart from reducing the rate of deforestation, the purpose of this collaboration is to expand land cover, which will increase the ability of forest areas to absorb greenhouse gas emissions.
"It has been identified that nine potential locations in the forest area belonging to the Perhutani Group will be the object and location of this project. FS will further investigate the nine potential locations to determine the project's feasibility, particularly in terms of environmental impact, as well as financial and operational aspects," he said.
Natalas added that based on the Pre FS results, the NBS Project in these 9 locations could generate carbon credits of more than 11.6 million tons of CO2 per year. Therefore, with the right business scheme, this project will be able to become a new business that provides added value on both sides.
According to Natalas, Perum Perhutani's decarbonization efforts include suppressing or minimizing forest damage and enhancing land rehabilitation, suppressing forest fires, and replacing the use of Marine Fuel Oil (MFO) in the forest product industry with Compressed Natural Gas (CNG). In addition, in the plantations field, Perhutani also reduces inorganic fertilizers utilization. Nature-Based Solutions (NBS) are one solution that refers to the sustainable management and optimization of natural resources through management reconfiguration.
In this event, a joint planting of resin tree seedlings was also carried out in the Sentul Eco Edu Tourism Forest area as a starting symbol of the collaboration between Pertamina NRE and Perhutani.**