Pertamina Presents the Path to Achieve NZE 2060 at the CFA Conference

Jakarta, July 7, 2023 - In the Chartered Financial Analyst (CFA) Society Indonesia 20th anniversary celebration, Pertamina attended and participated in the conference as one of the panelists, held at Le Meridien Hotel Jakarta on Thursday, July 6, 2023.

CFA Society Indonesia is a global non-profit professional organization that provides financial education to investment professionals. The institution promotes ethics, education, and professional excellence in global investment services industry.

The Chairman of CFA Society Indonesia and Deputy Minister of State-Owned Enterprises, Pahala N. Mansury, revealed that the conference was themed "Indonesia's Transition towards Net Zero." The theme was chosen considering Indonesia's transition towards the target of reducing Greenhouse Gas (GHG) emissions by 29% unconditionally and 41% conditionally. Indonesia has also committed to achieving Net Zero Emissions by no later than 2060.

"Indonesia's transition towards Net Zero is a hot topic as Indonesia is ambitious to achieve a 32% emission reduction by 2030. To address the challenges at hand, the finance sector plays a crucial role, and we need to find creative ways to realize our targets through better financial practices. The second topic we will discuss today is how Indonesia is developing the carbon market," he said.

Pahala aims for the public and private sectors to collaborate in achieving Net Zero for Indonesia. CFA Society Indonesia has an advocacy role in providing input to drive policy implementation of expected practices.

"Our main target in this seminar is to raise awareness and encourage more disclosure related to Environmental, Social, and Governance (ESG) aspects so that there is a wider emissions distribution from issuers and funds," he added.

Deputy Minister of the Ministry of Environment, Alue Dahong, stated that the energy sector is the largest contributor to carbon emissions. Therefore, if emissions are not reduced through energy efficiency and transformation from fossil fuels to new renewable energy, Indonesia will not achieve Net Zero Emissions by 2060.

"There is a misconception that emissions are solely the government’s responsibilites, which is not the case. Emissions and emission reduction targets are addressed in all sectors, including the energy sector. Some emissions reductions are implemented by the government, while others are carried out by partners," he explained.

Meanwhile, the President Director of Pertamina New & Renewable Energy (Pertamina NRE), Dannif Danusaputro, explained how Pertamina is advancing in the energy transition while ensuring energy resilience for Indonesia through achieving net zero emissions by 2060 aspiration.

"Pertamina has two initiatives to achieve net zero emissions. Namely, business decarbonization and building new businesses. Decarbonization initiatives include energy efficiency, green energy-based power generation, electric vehicle utilization, internal CCS/CCUS (Carbon Capture and Storage/Utilization) systems, and low-emission fuels. The second initiative involves building new businesses, including renewable energy development, EV charging and battery swapping, natural-based solutions, Blue/Green hydrogen development, battery and EV ecosystem development, biofuels, integrated CCS/CCUS, and carbon market businesses,” he stated.

Pertamina NRE has three strategic pillars. Firstly, low-carbon solutions such as gas-to-power and decarbonization through energy conservation and NBS (Nature-Based Solutions). Secondly, renewable energy development, such as geothermal energy, solar energy, biogas, wind, and tidal energy. And thirdly, new businesses in the energy sector development, such as batteries and the electric vehicle ecosystem, carbon business, and clean hydrogen.

"Building clean energy businesses portfolio is the primary focus of Pertamina NRE's advancement to support decarbonization, which is Pertamina, Indonesia, and the global community’s goal. Pertamina NRE's operational assets and project pipeline for power generation currently reach 4.5 GW with additional capacity potential in the future," he concluded.

Fadjar Djoko Santoso, VP of Corporate Communication of Pertamina, conveyed that Pertamina continues to drive green energy business development across all its business lines.

"Pertamina, through all its Subholdings, is committed to promoting energy transition by continuously developing new businesses that prioritize green energy," expressed 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.**