“This is our future business, because now, our revenue proposition is mostly contributed by fossil fuel by more than 95 percent. Going forward, (we want that) revenue coming from renewable energy will be increasing over time,” Finance Director of Pertamina Emma Sri Martini stated in a panel discussion of the ASEAN Indo-Pacific Forum (AIPF) in Jakarta on Wednesday.
Indonesia is hosting the AIPF in Jakarta on September 5-6. The forum aims to strengthen inclusive cooperation and collaboration between ASEAN countries and partner countries in the Indo-Pacific Region.
In order to boost investment in renewable energy projects, she said, Pertamina strives to channel more allocations in terms of capital expenditure up to US$145 billion.
The company has prepared two main strategies to develop its green energy project by decarbonizing the existing business and building low-carbon fuel business.
Martini remarked that such strategies would be implemented to secure national energy security as well as to export the green energy.
“This is what we want to do with our green ammonia, hydrogen, CCUS, etc. Hence, I think we should carry out those two strategies, as we have to be more focused on investing in renewable energy that we put already in our net zero carbon roadmap," she noted.
Through those strategies, Pertamina is keen to capitalize on Indonesia’s enormous energy potential from geothermal, which is currently operated for over 700 megawatts. The company expects to increase geothermal energy production to 200 megawatts in the next two years.
Pertamina is ready to discuss several opportunities in green energy development with international partners, according to Martini.
“We are working on a greener operating model, with proof that our ESG (environmental, social, and governance) score is really convincing now that we are sitting at the second rank for the integrated oil and gas sub-industry, so we are really committed that our operating really supports the ESG. This is our attractive factor that for us can be more easy to invite our strategic partner to invest in our green infrastructure,” she explained.
During the AIPF, which is held as a flagship event of the 43rd ASEAN Summit hosted by Indonesia, Pertamina is exploring nine potential areas for cooperation to build green infrastructure.
In the energy and oil and gas sectors, these include preparing partnerships in the construction of the Kalibaru Integrated Green Terminal infrastructure, the Central Tapanuli Integrated Terminal, opportunities for collaboration on carbon capture and storage/carbon capture utilization & storage (CCU/CCUS), and the Dumai-Siak gas pipeline network for the production of green hydrogen and nature-based solution.
The company's concrete steps in developing green infrastructure are not only being carried out within the Pertamina Group but also with state-owned companies that are members of the Indonesia Battery Corporation (IBC) in developing an electric vehicle (EV) battery factory.
Pertamina is committed to supporting the 2060 net zero emission (NZE) target by continuing to encourage programs that have a direct impact on achieving sustainable development goals (SDGs). All these efforts are in line with the implementation of environmental, social, and governance (ESG) in all Pertamina business lines and operations.
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