Three state-owned companies have agreed to collaborate on building green industry clusters in Indonesia that will prioritize the efficient and effective use of sustainable resources.
The three state firms are electricity company PT Perusahaan Listrik Negara (PLN), oil and gas company PT Pertamina, and fertilizer company PT Pupuk Indonesia.
"We hope that the cooperation agreement we signed today will offer a momentum to realize green industry clusters," Vice Minister of State-Owned Enterprises Pahala Mansury said in Jakarta on Wednesday.
Indonesia currently has an opportunity to develop the green economy since other countries do not have natural resources such as those owned by Indonesia, he said.
Under the agreement, Pupuk Indonesia, through its four subsidiaries in Aceh, South Sumatra, West Java, and Kalimantan, which currently serve as ammonia production centers, will focus on developing green and blue ammonia, Mansury informed.
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"Actually, the areas also have reservoirs that are currently seeing a decline in production," he said.
The green industry clusters will develop renewable energy, apply carbon capture, utilization, and storage (CCUS) technology, and reduce the use of primary energy with high emissions, he added.
The development of green industry clusters is also expected to increase industries' demand, which has not grown maximally, he said.
"The power oversupply, which has so far been one of our obstacles, can also be used to ensure that supply and demand can match. Hopefully, we can find a solution to the problem through the development of green industry clusters," Mansury said.
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