Following the President's Directive, Pertamina is Ready to Become the Market Leader in Carbon Trading in Indonesia

Jakarta, September 26, 2023 - PT Pertamina (Persero) is prepared to become market leader in carbon trading in Indonesia. To achieve this, Pertamina is harnessing the carbon potential from all its subsidiaries to develop a carbon trading ecosystem. This step is a tangible manifestation of Pertamina's contribution to addressing the climate change crisis.

This commitment by Pertamina aligns with the IDX Carbon Exchange inaugural launch at the Indonesia Stock Exchange (BEI) in Jakarta by the President of the Republic of Indonesia, Joko Widodo, on Tuesday, September 26, 2023.

President of Indonesia, Joko Widodo, stated that carbon trading exchange launch in Indonesia is a concrete contribution to combating the climate change crisis, with the proceeds being reinvested in environmental preservation through carbon emission reduction. Indonesia has remarkable potential in nature-based solutions and is the only country where approximately 60% of its carbon emission reduction fulfillment comes from the natural sector.

"If calculated, our carbon exchange potential could reach IDR 3,000 trillion, or even more. It is a significantly large figure, which will undoubtedly create a new, sustainable, and environmentally friendly economic opportunity following the world's shift towards a green economy," President Jokowi said during the opening of the Carbon Trading Exchange at the Indonesia Stock Exchange in Jakarta on Tuesday (26/9).

The President emphasized that this carbon exchange launch will be a significant step for Indonesia to achieve its Nationally Determined Contributions (NDC) targets. Therefore, he reminded three things: using international carbon standards as a reference and utilizing technology for efficient and effective transactions; setting targets and timelines for domestic and international markets; and regulating and facilitating voluntary carbon markets following international community practices.

"And make sure that these international standards do not interfere with Indonesia's NDC targets," stated President Jokowi.

In line with the President's directive, the President Director of PT Pertamina (Persero), Nicke Widyawati, stated that Pertamina, as an integrated company from upstream to downstream, has played a crucial role in the carbon business and trading. Through its Upstream Subholding, Pertamina has initiated the Carbon Capture Storage (CCS)/Carbon Capture Utilization and Storage (CCUS) technology implementation by conducting the inaugural CO2 injection at the Pertamina EP Jatibarang Field in Indramayu, West Java.

"In addition to contributing to carbon emission reduction, the CCU/CCUS technology also benefits the increase in oil and gas production in Pertamina's upstream fields," Nicke said.

For carbon trading development, Pertamina New & Renewable Energy (PNRE) Subholding serves as a trader within the Pertamina Group. PNRE is set to be a key player in carbon trading as it already possesses certified supplies from the Ministry of Environment and Forestry (KLHK).

Carbon trading is also conducted by the Commercial & Trading Subholding (PT Pertamina Patra Niaga) by opening business opportunities with domestic companies as potential customers, both domestically and internationally.

"Pertamina Group is committed to developing an internationally standardized carbon trading ecosystem and supporting the government's efforts to address the climate crisis," Nicke conveyed.

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