Pertamina Outlines Strategy to Address Energy Trilemma

Jakarta, August 8, 2024 – As Indonesia’s national energy company, PT Pertamina (Persero) faces the energy trilemma challenge: ensuring optimal domestic oil and gas production to achieve energy security and affordability while implementing sustainability principles.

To maintain national energy resilience, Pertamina continues to increase upstream production following the government targets. At the same time, the government is committed to reducing greenhouse gas emissions and achieving the net zero emission (NZE) target by 2060, including through reducing emissions from the energy sector.

Pertamina addresses this energy trilemma challenge through two strategies. "First, maximizing our existing business. Second, increasing the development of low-carbon products," said Indira Pratyaksa, Vice President of Sustainability Program, Rating & Engagement of PT Pertamina (Persero), at the Katadata Sustainability Action for The Future Economy (KATADATA SAFE) 2024 event at the Grand Ballroom of the Kempinski Grand Indonesia Hotel, Jakarta, on Wednesday (7/8).

Pertamina ensures energy availability for the public by increasing oil and gas production while aiming to reduce carbon emissions and shift towards new and renewable energy. It is not an easy challenge. Therefore, to address this challenge, Pertamina must implement both strategies simultaneously.

"This is not an option. Both strategies are essential in tackling the energy trilemma," said Indira.

Indira was a speaker at KATADATA SAFE 2024 in a one-on-one session themed "Pioneering Solutions to the Energy Trilemma: Strategy and Innovation". KATADATA SAFE is an annual forum organized by Katadata Indonesia since 2020. SAFE discusses issues and solutions for sustainable economic development.

According to Indira, in maximizing its existing business, PT Pertamina (Persero) is implementing several strategies. These include improving refineries’ quality to produce high-quality and valuable products. The retail fuel business transformation is also ongoing.

Regarding low-carbon product development, the company has produced biofuels such as bioethanol, biodiesel, and sustainable aviation fuel (SAF). Moreover, Pertamina has started to trial of carbon capture, utilization, and storage (CCUS) technology and nature-based solutions (NBS).

Fadjar Djoko Santoso, the Vice President of Corporate Communication of Pertamina, added that Pertamina also addresses the energy trilemma by optimizing the Pertamina Group’s resources and strengthening collaboration with various partners from the private sector, government, and academia. "With all parties’ support, Pertamina can navigate these energy industry challenges and provide optimal benefits to the community," explained Fadjar.

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.**