Indonesia’s state-owned energy company Pertamina has set several initiatives to accelerate energy transition to the target energy mix and emission reduction in ensuring sustainability.
“Pertamina is fully committed to ensuring that we manage sustainability issues properly that aligned with the international standard,” Pertamina’s Senior Vice President of Investment Management Daniel Purba.
The alignment is in line with global movement by major energy players who are responding to climate change and the impacts, according to Pertamina it has set several targets to address environmental problems, including reducing emissions by 30 percent in 2030 to address the impacts of climate change, reducing the environmental footprint by complying with water and waste management practices, and protecting biodiversity by providing a net positive impact on biodiversity as well as other sustainable targets.
The oil giant’s strategies to drive green energy are executed through priority initiatives, including developing a net zero roadmap, conducting decarbonization, and improving the new and renewable energy capacity, he explained.
Purba remarked that in supporting energy transition, Pertamina allocates CAPEX of 14 percent for clean, new, and renewable energy. Pertamina’s commitment aligns with efforts to use domestic resources to supply domestic energy for green development and decarbonization.
Moreover, to drive new and renewable energy growth in Indonesia’s energy mix, Pertamina developed several projects and activities to expand the green energy portfolio, one of which is by enhancing capacity, from 672 megawatts (MW) in 2020 to 1,128 MW in 2026.
Keeping with the theme, the group lowered emissions by 27 percent during the 2010-2020 period to support Indonesia’s Nationally Determined Contribution. The target increases to 29 percent by 2030.
Alternative clean energy is constantly being sourced, Indonesia sits along geothermal plates which makes the surrounding areas the potential to harness these energy
In this aspect, Indonesia’s efforts to push energy transition and decarbonization, Pertamina Geothermal Energy are in a good position to contribute further to emission reduction and decarbonization. The subsidiary currently manages 14 Geothermal Working Areas, with a total installed capacity of 1.877 MW, from Aceh, along Sumatra Island, Java, Bali, and North Sulawesi.
PGE works on three different approaches, with the co-generation approach that encompassed steam and hot brine production to generate green electricity, co-production approach that studies how they can utilize CO2, extract rare earth elements, such as lithium, and produce green hydrogen, as well as the co-development approach that looks into the development of the geothermal area to be a geothermal ecotourism destination.
