Realizing Support for the National NZE Target Fulfillment, Pertamina Prepares a Strategy for Achieving the Net Zero Emission (NZE) Target

Jakarta, October 8, 2022 – Pertamina is committed to fulfilling the National NZE target and making a real contribution to the Government's program by accelerating the energy transition, which includes various decarbonization initiatives and new business development, both independently and in collaboration with other parties.

Pertamina's NZE commitment is realized by developing and compiling Pertamina's NZE Roadmap, which includes a decarbonization strategy and new business development based on clean and green energy. Pertamina's NZE Roadmap implementation is supported by accurate carbon accounting and reporting following the global standards, Internal Carbon Pricing and Carbon Trading implementation, a dedicated sustainability organization establishment, fundamental capabilities strengthening, and alignment with relevant stakeholders.

Pertamina's NZE Roadmap was created as one of the frameworks and references that stakeholders can use to understand Pertamina's commitment to meeting NZE targets and upholding the company's environmental, social, and governance (ESG) requirements.

Pertamina's NZE Roadmap will include the company's long-term strategic plan aligned with Pertamina's decarbonization and clean & green energy business aspirations, as well as the Government's NZE target of 2060 or sooner. It is also Pertamina's commitment to support Indonesia's commitment as part of the global community in climate change mitigation actions.

Within this framework, Pertamina signed a commitment by the President Director with the President Director of Pertamina Subholdings. This commitment includes strategy and pathways aspects that will be carried out, as well as all aspects that support strengthening NZE targets and their sustainability achievement. Pertamina has prepared plans and steps that follow all aspects and areas of the company's business from upstream to downstream, which ensure the company's mission fulfillment as the main energy provider to serve all levels of Indonesian society, both public, industry, and Government.

“We have witnessed the commitments that have been signed. We set a net zero emission roadmap as our support for Indonesia’s Nationally Determined Contribution, which has just been revised, and the Government has set a more ambitious target. Thus, we follow it," said President Director of Pertamina, Nicke Widyawati.

Nicke added that decarbonization efforts in implementing the NZE roadmap context were manifested in several strategic initiatives. It includes energy efficiency, loss reduction, electrification, low-carbon fuel and green-power generation utilization, as well as carbon capture and storage optimization in all lines of the company's business.

“Indonesia has enormous potential for carbon capture storage. In Asia, only Indonesia and Malaysia have it. Indonesia is mostly onshore, and Malaysia is mostly offshore. So we have a competitive advantage. Therefore, this is our new oil and gas business carbon capture,” added Nicke.

Moreover, to accelerate implementation to support the emission reduction targets fulfillment within Pertamina internally and nationally, Pertamina also plays an active role in developing the carbon market ecosystem through the carbon trading pilots implementation within Pertamina.

Additionally, Pertamina helps SOEs synergize in the development of the carbon economy. For actual implementation in supporting the decarbonization initiative, cooperation is also carried out with various other parties, including the Indonesia Stock Exchange regarding the Carbon Business Trading development, Krakatau Steel regarding the Green Hydrogen development, Chiyoda regarding the CCUS initiative, and others.

“We must prepare Pertamina's future from now because everything we do cannot be flat. Hence, we have to design all plans for the future,” said Nicke.**