Performance in 2022: Pertamina's Business Innovations Successfully Achieve 31% Emission Reduction

Jakarta, June 7, 2023 - Amidst various global challenges, PT Pertamina (Persero) has successfully developed various business innovations for decarbonization or carbon emissions reduction and greenhouse gas effects. By the end of 2022, the total emission reduction reached 7.9 million tons of CO2e, equivalent to a 31.06% decrease compared to the 2010 emission baseline.

Nicke Widyawati, President Director of PT Pertamina (Persero), stated that as an energy company in Indonesia, Pertamina must be able to address the global energy transition and various demands for change by formulating a roadmap to ensure sustainable growth for the company.

"Since Indonesia still relies on fossil fuels, all Pertamina business lines work together to reduce carbon emissions. This 31% is a significant achievement and the result of collective efforts," added Nicke during the Pertamina Media Briefing in Jakarta on Tuesday (6/6).

According to Nicke, the government’s previous year's target was 29%, and Pertamina has exceeded that target. Emission reduction, as outlined in the Republic of Indonesia's Nationally Determined Contribution (NDC), reflects the company's commitment to contribute to climate change and energy transition goals in achieving the Net Zero Emission target. Pertamina Group implements this policy through decarbonization, green business, and green operations acceleration, as well as human resources and organizational capabilities development. Moreover, green technology and digital innovation utilization, carbon market business development, and innovative business models are also emphasized.

Green business initiatives are implemented across various Pertamina business lines to realize energy transition and decarbonization programs. One example is in the upstream sector, through the utilization, storage, and carbon capture (Carbon Capture, Utilization, and Storage / CCUS), where Pertamina has successfully conducted the inaugural CO2 injection at the Pertamina EP Jatibarang Field.

In the processing sector, innovations in biofuel production continue to progress, as evidenced by the Green Refinery in Cilacap Phase 1 operation, capable of producing 3,000 barrels per day (bpd) of Green Diesel. The Green Diesel products introduction began with the inaugural export of Hydrotreated Vegetable Oil (HVO) to Europe and the first lifting for domestic demand.

The company's steps in intensifying energy transition also play a significant role in future emission reduction. Through PT Pertamina Power Indonesia (PPI) as the Power, New, and Renewable Energy sub-holding, Pertamina is developing geothermal energy, hydrogen, electric vehicle batteries, Energy Storage Systems (ESS), and other efforts to increase new renewable energy capacity.

With these various decarbonization efforts, Pertamina could improve its ESG (Environment, Social & Governance) rating from Sustainalytics. In 2022, the rating improved to 22.1 from the previous 28.1 (a lower rating is better). With this rating, Pertamina ranks second in the integrated oil and gas industry subsector.

As a leading company in the energy transition field, Pertamina is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the achievement of Sustainable Development Goals (SDGs). All these efforts follow the Environmental, Social & Governance (ESG) implementation across Pertamina's business lines and operations.**