SOE International Conference: SOE's Commitment to Energy Transition and Stabilizing the Economy
October 17, 2022 – The Ministry of State-Owned Enterprises (BUMN) held a State-Owned Enterprise (SOE) International Conference in Bali. This activity is Indonesian SOE's commitment to supporting and implementing the energy transition as well as implementing the energy sustainability principles for the future to stabilize the economy.
The SOE International Conference: Driving Sustainable & Inclusive Growth was held at the Bali Nusa Dua Convention Center (BNDCC), Nusa Dua-Bali, Monday (17/10/2022). Presence at the conference was the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan, Minister of SOEs Erick Thohir, and various SOE's board of directors. Meanwhile, Vice President KH Ma'ruf Amin conveyed a message via video.
Luhut appreciated SOEs' role in Indonesia. According to him, SOEs have contributed to several aspects of the country, from the energy supply sector and the economy to the health sector, especially during the Covid-19 pandemic.
Luhut also said that many transformations in Indonesia require the support of SOEs. SOEs have two main roles. Namely, as value creators and agents of development. SOEs are expected to provide goods and services for the community throughout the country.
"I think in this era, the SOE has a huge role. They play a vital role, especially in times of crisis. Thus, in the last three years, if you look at it now, the SOEs have contributed greatly to stabilizing our economy," Luhut said.
Furthermore, Luhut added the transformation by the SOE by changing the concept from super holding to sub-holding, made the company more efficient and resilient. As of December 2021, SOEs have been reduced from 108 to 92.
"The SOEs performance improvement encourages non-tax revenue increase to 36 percent throughout 2022 and 105 percent from the target set by the government. We are here to witness SOEs' role and milestones in strengthening the nation's economy," he concluded.
Meanwhile, SOE Minister Erick Thohir added the transformation result shows the SOE effort that has been on track and must be sustainable. The goal is for SOEs to serve their role as value creators and development agents effectively, and provide real benefits for the nation and society.
The SOE International Conference is part of the fovernment's efforts to inform the international community about the transformation and the importance of SOEs for the Indonesian people. “I would like to thank the Coordinating Ministry for Maritime Affairs and Investment, as well as the Ministry of Trade for supporting the International SOE Conference, part of the Road to G20 series at the Trade, Investment and Industry Working Group (TIIWG) as well as the speakers, participants and guests, " he said.
Erick further said the SOE International Conferences series raised topics that support the government's focus on the G20 2022, namely Digitalization, Energy Transition, Financial Inclusion, and Health Transformation. It involves international speakers, ranging from practitioners, academics, consultants, government representatives, and multilateral institutions.
Meanwhile, President Director of Pertamina, Nicke Widyawati, said that in this international conference, the energy transition issue became the main discussion. Nicke said Pertamina, as SOE is highly committed to implementing this energy transition, and several steps have been made to support this.
Nicke said Pertamina has ambitions to become a leading global energy company with a good reputation and an Environmentally Friendly Company, Socially Responsible Company, and Good Governance Company. "This has become Pertamina's commitment to implement the Environmental, Sustainability, & Governance (ESG) Framework in all the company's business to encourage business sustainability in the future," Nicke said.
As an energy company, Pertamina has a big responsibility in achieving net zero emissions in Indonesia, with affordability and fairness principles. To achieve Net-Zero aspirations, Pertamina has developed a holistic strategy delivered through two pillars and three enablers (supporters). The two main pillars are the effort to decarbonize its business activities and the new Green Business development.
"There are three enablers that will support Pertamina’s plan to encourage Net-Zero. The first is to develop carbon accounting standards accepted by national and international regulations, as well as to implement carbon pricing, beginning within Pertamina. Second, building a sustainability organization that will oversee Pertamina’s business is on the right track for the Net Zero Roadmap goals. Third, stakeholder engagement to fully support the National NZE targets and commitments,” Nicke explained. Nicke added, through this holistic strategy, in 2021, Pertamina achieved a 29% reduction in carbon emissions, which was 2030 target.
To note, this series of SOE International Conferences was attended by more than 1,000 participants from G20 countries such as the United States, Britain, India, Australia, South Korea, China, Japan, and Russia, as well as representatives of non-G20 countries such as Spain, the United Arab Emirates. Arab, Singapore, Dutch and other countries. The participants are leaders with various backgrounds, including Ministries/Institutions, State-Owned Enterprises, DPR RI, embassies of fellow countries, International Organizations, Academics, Researchers to domestic, and foreign investors.**