ADB Grant Boosts Optimism for Pertamina NRE's Nature-Based Solutions Positive Prospects

Jakarta, June 22, 2023 - Pertamina New & Renewable Energy (Pertamina NRE) has received a grant from the Asian Development Bank (ADB) for its ongoing nature-based solutions (NBS) initiative in collaboration with Perum Perhutani. The grant will support the operational analysis conducted by technical consultants on two NBS concessions.

ADB has granted the funds to Pertamina NRE due to its strong commitment to implementing green initiatives, including NBS. This grant will support Pertamina NRE's efforts as a carbon market aggregator within the Pertamina Group and other state-owned enterprises (SOE) in achieving the net-zero emission target by 2060.

"We are proud to receive this grant. We express our gratitude to ADB for their support. This support demonstrates the financial institution's optimism and confidence in the nature-based solutions initiatives prospects. With this support, we are optimistic that the NBS collaboration between Pertamina NRE and Perhutani will yield positive results," said Fadli Rahman, Director of Strategic Planning and Business Development of Pertamina NRE.

The NBS collaboration between Pertamina NRE and Perhutani began with a head of agreement (HoA) signing on June 20, 2023, followed by a master agreement (MA) signing on February 20, 2023. They have identified nine potential concessions owned by Perum Perhutani. Currently, Pertamina NRE is finalizing feasibility studies for two concessions. The two concessions could generate up to 25 million tons of carbon credits over 30 years. The collaboration between these two entities will continue with seven additional concessions development. In total, this collaborative project could reduce seven million tons of CO2e per year, or cumulatively 20 million tons of carbon credits, by 2030.

The NBS implementation plays a vital role in climate change mitigation efforts. In addition to reducing greenhouse gas emissions (GHG), NBS implementation, particularly through conservation practices, will also protect biodiversity, provide employment opportunities, and strengthen food resilience for local communities.