Pertamina Strengthens Its Position in Indonesia’s Carbon Market

Jakarta, December 16, 2024 – In a strategic step towards energy transition and achieving Indonesia’s Net Zero Emission (NZE) target, Pertamina New & Renewable Energy (Pertamina NRE), together with its subsidiary PT Pertamina Geothermal Energy Tbk (PGE), signed an amendment to the Carbon Credit Trade Agreement (PPKK). The agreement was signed by the CEO of Pertamina NRE, John Anis, and President Director of PGE, Julfi Hadi, and witnessed by the President Director of PT Pertamina (Persero), Simon Aloysius Mantiri.  

This collaboration continues Pertamina NRE's contribution to managing carbon credits derived from the Lahendong Unit 5 & 6 geothermal project in the Tompaso Geothermal Field, North Sulawesi Province, Indonesia.  

Since the launch of IDXCarbon on September 26, 2023, Pertamina NRE has recorded 862,000 tons sales of CO2e carbon credits from Lahendong Unit 5 & 6 for volumes 1 and 2. These sales accounted for 96% of Indonesia's carbon credit market share, further solidifying Pertamina NRE’s role as the carbon market aggregator within the Pertamina Group. Through the agreement, Pertamina NRE aims to sell an additional 390,000 tons of CO2e carbon credits for volume 3.  

In his remarks, Simon appreciated the innovations supporting Net Zero Emission. "Indonesia has abundant green energy potential, from year-round sunlight to vast forests, geothermal resources, and hydrogen. I deeply appreciate this hard work, which will significantly benefit the government’s efforts to advance the energy sector towards green energy transition. In time, we will achieve energy self-sufficiency," Simon said.  

"Since being appointed as Pertamina’s carbon aggregator in 2022, Pertamina NRE has actively led the carbon market, dominating 95% of the market share on IDXCarbon and selling nearly all available volumes," John Anis stated.  

John also highlighted that Pertamina NRE is not only focusing on geothermal but also expanding its carbon business portfolio to include biogas, gas-to-power projects, and nature-based solutions. “We not only focus on business activities but also ensure that daily operations, including events or seminars, offset their carbon emissions to become carbon-neutral events,” John added.  

Meanwhile, the President Director of PGE, Julfi Hadi, emphasized PGE’s extensive experience with carbon credits since 2011 and its collaboration with Pertamina NRE to optimize carbon credit potential as a new revenue stream.  

"The signing of today’s agreement amendment is a crucial step towards accelerating the commercialization of our geothermal projects, making them more strategic and appealing to investors," Julfi Hadi said.  

On a separate occasion, Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, stated that the Pertamina Group actively participates in carbon credit trading as part of its commitment to becoming a sustainable company. This role will continue to be strengthened, not only through synergy within the Pertamina Group but also with institutions and academics to achieve Indonesia's Net Zero Emission target.  

"Pertamina also encourages all its subsidiaries to collaborate, both within the Pertamina Group and with external parties, to support the Net Zero Emission 2060 target," Fadjar concluded.  

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.**