SOEs-Private Sector Synergy: Pertamina's Energy Transition Program Unlocks Opportunities to Collaboration with Private Sector

Jakarta, August 15, 2023 - PT Pertamina (Persero), as national energy company, continues to drive energy transition program that has become a global issue. Pertamina, as a State-Owned Enterprise (SOE), plays a crucial role in green energy development and emission reduction aspects. Pertamina's efforts cannot be carried out alone; cooperation with various parties, including national private companies, is needed.

Pertamina's move to open the door for collaboration with the private sector was directly revealed by President Director of Pertamina, Nicke Widyawati, at the SOEs-Private Sector Synergy Forum for Collaborative Inclusive Development, at the Ritz Carlton Hotel in South Jakarta (14/8).

Nicke explained that while fossil fuels still constitute the majority of global primary energy consumption in 2022, many countries are moving towards green energy and decarbonization programs. Indonesia, with its vast territory, strategic location, and abundant natural resources, will have a crucial role in the future.

"Indonesia holds immense potential for the future. One of these potentials lies in the realm of new and renewable energy sources (NRE), which can serve as an opportunity to create businesses for future energy transition. For instance, Indonesia possesses a potential of 400 gigatons for CCUS clusters," Nicke explained.

Recognizing the need to seize these potentials, Pertamina is undertaking various energy transition efforts, including Bio Energy, Geothermal, Hydrogen, EV Battery & Energy Storage System (ESS), Gasification, Nature-Based Solutions, Carbon Capture, Utilization and Storage (CCUS), and Ammonia development.

Furthermore, Nicke elaborated that to execute all these programs, Pertamina has allocated a budget of USD 68 billion over the next 5 years, approximately IDR 1,000 trillion, with a composition of around 43.8% for Fossil Fuel, 41.7% for Petrochemicals, and 14.5% for Green Business.

"From all these aspects, Pertamina is open to collaborating on the investment side with the private sector. And this is not to mention the potential when we consider our position as a supplier, contractor, and others, making the potential quite substantial. It is in line with our goal as the national industry's locomotive and national economic growth," Nicke stated.

Nicke believes that collaboration is the key to transitioning towards green energy. Until now, Pertamina has also formed partnerships in energy transition and decarbonization for the EV Ecosystem, Nature-Based Solutions, and Green Industrial Clusters.

"The synergy between SOEs and domestic private companies also stimulates national economic recovery, involving 5,600 vendor or local manufacturing participants, 82,000 workers, and a 60.6% Domestic Component Level (TKDN) utilization," Nicke added.

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.**