Synergy Between Pertamina NRE – Perhutani Aims to Accelerate Net-Zero Emission in 2060

Jakarta, March 9, 2022 – Pertamina NRE and Perhutani synergize to accelerate the net-zero emission target by 2060. This synergy is carried out in the form of efforts to absorb and prevent the release of carbon emissions from trees in forest areas managed by the Perhutani Group.

At the end of 2021, Pertamina, Perhutani, and PTPN had signed a Memorandum of Understanding on the decarbonization of SOEs. As a follow-up to the Memorandum of Understanding, Pertamina and Perhutani are currently completing a pre-feasibility study for a nature-based solution (NBS) project.

This aligned with the direction from the Ministry of SOEs for the industrial sector SOE decarbonization program to achieve the Nationally Determined Contribution target in 2030, presented at the COP26 event. On another occasion, Deputy Minister of SOEs I, Pahala Mansury, said, "PTPN and Perhutani can support emission reduction programs through Nature-based climate solutions and cooperate with industrial SOEs that produce emissions, including Pertamina and PLN. It is to support the target achievement towards net-zero emissions."

“Pertamina NRE welcomes the synergy of SOEs. Pertamina NRE has the competence and qualified resources to calculate carbon sequestration. This synergy is part of the Pertamina NRE nature-based solution project, a voluntary approach to mitigate climate change and have a substantial impact on the realization of sustainability by managing forest areas and ecosystems. This is in line with the government's target of achieving net-zero emissions by 2060," said CEO of Pertamina NRE Dannif Danusaputro.

Meanwhile, President Director of Perum Perhutani Wahyu Kuncoro said that as an SOE in the forestry sector, the Perhutani group supports the government and plays a role in reducing carbon emissions in Indonesia's forest areas.

"Forestry and agriculture, apart from the energy and transportation sectors, are priority sectors in the decarbonization program," said Wahyu.

Currently, three prospective NBS locations have been identified in the Perhutani group area based on a high-level feasibility study conducted based on area and location, vegetation, deforestation trends over the last 20 years, current land use patterns, and other factors including economic and technical and non-technical. The three potential locations will be followed by a pre-feasibility study and a feasibility study to determine the feasibility of the NBS project.

In its long-term aspirations, Pertamina NRE has three strategic pillars. Namely, low carbon solutions, new and renewable energy developments, and future business development in the energi sector. Within the pillar of low carbon solution, there are decarbonization initiatives, one of which is through NBS. This project is a medium-term project which must go through several stages, including globally standardized carbon emission reduction certification. This certification is issued by international institutions that make emission accounting standards, such as Verra and the Gold Standard. Currently, Pertamina NRE, in synergy with Perhutani, is conducting a pre-feasibility study.

As a country located on the equator, this strategic position makes Indonesia potentially one of the largest suppliers of forestry-based NBS carbon credits in the world. Based on data from the Ministry of Environment and Forestry, forest areas in Indonesia account for more than 51 percent of the total area of Indonesia. Forests in Indonesia are tropical forests where the characteristics of the plants continue to be green throughout the year and are relatively independent of the season. This further supports the absorption of CO2.

With a vision to lead Pertamina's energy transition, national decarbonization, and become a green energy champion in Indonesia and as a company that prioritizes ESG implementation in its business management, Pertamina NRE is very committed to realizing net-zero emissions by 2060 together with the government.**