Pursuing NZE Target, Pertamina – JBIC Commits to Developing Clean Energy

Bali, 15 November 2022 – To pursue the Net Zero Emission (NZE) target set by the government of Indonesia in 2060, the government encourages companies to increase value for attracting investment and financing through green financing schemes to support green economic growth programs in Indonesia.

For this reason, in the momentum of Government 20 (G20), where Indonesia holds the presidency, PT Pertamina (Persero) cooperates with Japan’s policy-based financial institution, the Japan Bank for International Cooperation (JBIC), to promote clean energy in Indonesia.

This collaboration was realized by the signing of a Memorandum of Understanding (MoU) between PT Pertamina (Persero) and JBIC. The signing was carried out by Emma Sri Martini as Finance Director of PT Pertamina (Persero) and Noriyasu Matsuda, Resident Executive Officer, Regional Head for Asia and Pacific of JBIC, on November 13, 2022, ahead of the 17th Heads of State and Government Summit G20 in Bali.

This cooperation is a real step in global partnerships with various developed countries such as Japan to support developing countries including Indonesia to accelerate the energy transition or renewable energy implementation.

Finance Director of PT Pertamina (Persero), Emma Sri Martini, said as a state-owned energy company in Indonesia, Pertamina has established various decarbonization efforts in the oil and gas sector while developing renewable energy. Therefore, aiming to achieve  the Net Zero Emission (NZE) goal set by the Government of Indonesia in 2060.

According to Emma, as the host of the G20 presidency in 2022, the government of Indonesia has announced the target to reduce emissions by 31.89% in 2030 under the Enhanced National Determinant Contribution (NDC) document submitted to the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) in September 2022. Indonesia's government has also set a goal to achieve the NZE by 2060 at the United Nations Climate Change Conference (COP26).

"Through this MoU, we can advance collaboration with JBIC in the context of investment and Green Financing in various sectors such as renewable energy, value chains for hydrogen and ammonia, Carbon Capture and Storage, and green mobility," said Emma.

On the occasion of the signing of the Memorandum of Understanding, Noriyasu Matsuda stated that based on the Fourth Medium-Term Business Plan released in June 2021, JBIC aims to respond  energy transformation toward the realization of decarbonized society. JBIC has also established an ESG Policy released in October 2021 that follows international goals to carry off the Paris Agreement target.

"JBIC is committed to pursuing ambitious and accelerated efforts to bring down greenhouse gas emissions in its operations to net zero by 2030 and for its finance portfolio by 2050," said Matsuda.

JBIC's ESG policy also states that through ongoing cooperation with relevant national governments and authorities, JBIC will contribute to realizing global carbon neutrality by supporting and accelerating the energy transition towards decarbonizied societies in developing countries.

"As Japan's policy-based financial institution, JBIC will continue to provide financial support to create business opportunities and promote business for Japanese companies in a variety of sectors including decarbonization in Indonesia, by enhancing relations with Indonesia and Pertamina through multiple means, such as signing an MOU," concluded Matsuda.