Category: ASEAN

With Pertamina NRE involvement in Indonesia’s electric vehicle (EV) ecosystem development, the adoption of EVs represents a significant opportunity for the company, thereby reinforcing Indonesia’s efforts towards energy transition, the company said at the 2023 United Nations Climate Change Conference (COP28) on Friday (Dec 1).

Dannif Danusaputro, President Director of Pertamina New Renewable Energy (NRE), a subsidiary of the state-owned oil and gas company, conveyed their commitment to developing the EV ecosystem. “We will play a leading role in the infrastructure, charging stations, and the entire supply chain process for electric vehicles,” he noted during a session themed “E-Mobility: Balancing Sustainability and Growth in Critical Supply Chains” at the Indonesian Pavilion.

Dannif remarked that Pertamina NRE will develop two-wheeled EVs. The company has already collaborated with several ride-hailing companies in Indonesia. This collaboration involves fleet operator development, drivers, and charging infrastructure. The company will also focus on developing battery packs for two-wheeled vehicles.

In November 2023, Pertamina NRE partnered with PT VKTR Mobility Technology Tbk to initiate sustainable mobility solutions. Both companies introduced the Electric Mobility as a Service (e-MaaS) model to support the adoption of EVs for urban public transportation services.

The e-MaaS model offers flexible financing for operating and maintaining EV buses, intending to reduce reliance on government funding, thereby saving costs for deploying environmentally friendly vehicles in major cities. Dannif emphasized that the e-MaaS model also encompasses crucial infrastructure, such as charging stations and renewable energy sources.

During his presentation, Dannif stressed the importance of funding. He highlighted the need for funding to advance EV technology throughout the supply chain. “This is crucial in the development of the electric vehicle ecosystem. With it, a robust and independent electric vehicle supply chain will materialize more quickly,” Dannif stated.

Dannif also underscored another critical aspect: the diverse natural resources distributed across different regions, with connectivity pivotal in providing clean energy. Infrastructure and connectivity will facilitate supply chain distribution, accelerating the realization of the EV ecosystem.

Pertamina NRE’s support for the EV ecosystem aligns with President Joko Widodo’s directive to expedite public transportation electrification, as stipulated in Presidential Regulation 55/2019 and Presidential Instruction 7/2022. Pertamina NRE’s efforts aim to accelerate an environmentally friendly transportation supply chain ecosystem.

Shinta Kamdani, deputy chairperson for maritime affairs, investment and foreign affairs at the Indonesian Chamber of Commerce and Industry, stated that Indonesia holds significant potential in EV development. “Although still in its early stages, Indonesia has immense potential, from utilizing raw materials to battery recycling. The private sector can participate and seize opportunities in developing the electric vehicle supply chain ecosystem,” Shinta stated.

Encouraging the adoption of EVs, the government has implemented various measures to attract consumers, including incentives of Rp7 million for new motorcycles or conversions. On the manufacturing side, there is a 10 percent value-added tax deduction for domestic component levels reaching 40 percent.

Rachmat Kaimuddin, deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Investment, highlighted Indonesia’s active role as a primary EV supplier, not only nationally but also regionally. “Indonesia could become a major player in supplying electric vehicles internationally. This effort can commence with exports to the Southeast Asian region,” Rachmat remarked.

All panelists in the session agreed that utilizing raw materials, such as nickel, presents a significant opportunity for Indonesia. Moreover, collaborative steps are needed to enhance capacity and technology as well as leverage advantages for competitiveness. These efforts will progress smoothly with policy support from the government.

Francois De Maricourt, President Director of PT Bank HSBC Indonesia, and Kwasi Ampofo, Head of Metals and Mining at BloombergNEF, were also present at the session.

Pertamina, as a leading company in energy transition, is committed to supporting Net Zero Emission 2060 targets by unceasingly promoting programs that directly impact the achievement of Sustainable Development Goals (SDGs). These efforts align with the Environmental, Social & Governance (ESG) implementation across Pertamina’s business lines and operations.

PERTAMINA, https://www.pertamina.com 

Media ContactDicky SeptriadiCorporate SecretaryPT Pertamina New & Renewable EnergyM: +62 8111663456E: dicky.septriadi@pertamina.com

PT Pertamina Hulu Rokan (PHR) presented innovations in creating wetlands to manage wastewater produced from its operational activities at COP28 on Friday. PHR’s innovations, which were implemented to support the achievement of net zero emissions (NZE) by 2060, were presented at the 2023 UN Climate Change Summit, or Conference of the Parties (COP28), in Dubai, United Arab Emirates (UAE), on Friday (12/01).

PHR Vice President, Facility Engineering, Erwin Sinisuka explained that nature-based solutions (NBS) were employed to manage wastewater produced by Pertamina’s energy production processes. Wastewater management was carried out using constructed wetlands based on hydro technology, where wetlands are formed using a hydraulic loading rate technique, so that wastewater management simply used gravity. 

Erwin said the development of wetlands were part of the effort towards environmentally friendly operations, in accordance with environmental standards of the Ministry of Environment and Forestry. The session, ‘Unlocking the Potential of Nature Based Solutions, for Adaptation and Mitigation of Climate Change’ was held at the Indonesian Pavilion, COP28, on Friday. 

PHR has built constructed wetland covering an area of 5,000 m2 in one of its Rokan Block work areas. The wetland is the company’s pilot waste management project, while it is developing 14 wetland construction projects in its work areas.

The wetland has reduced emissions by 1,341 tCO2eq from January to October 2023, and has reduced wastewater discharge, which reached 11,30 barrels per day (bwpd) before construction, whereas now it is only 7,217 bwpd.

Constructed wetlands are not only for waste management but can provide more significant benefits for the community. “The community will always be our focal point, as their involvement can be the key to successful wetland management,” Sinisuka said.

PHR collaborates with local communities to manage these wetlands. The buffer materials and plants used at this location come from local sources, including coconut fiber, which is used as a filter. Apart from that, the community can use filtered water, he said.

Vice President of Upstream Business Operational Excellence, Health, Safety, and Environment, PHR I, Nyoman Widaryantha Naya added that this artificial wetland also becomes a water absorption area, which can reduce the risk of flooding “This constructed wetland also has many other benefits for the community. Residents are also now using the area as a small-scale transportation route by boat,” Widaryantha said.

In a similar session, the Deputy for Environmental and Forestry Management Coordination at the Coordinating Ministry for Maritime Affairs and Investment, Nani Hendiarti, stated that Indonesia has great potential to develop NBS, where 15 percent of the world’s NBS potential is in Indonesia.

Seeing these various potentials, the government is developing a blue carbon roadmap. Presidential Regulation 98 (2021) concerning the Economic Value of Carbon strengthens the optimization of blue carbon. “We will also include the marine sector and blue carbon in the nationally determined contribution targets,” Hendiarti said.

The Director General of Marine Spatial Management, Ministry of Maritime Affairs and Fisheries, Victor Gustaaf Manopo, said that blue carbon is part of climate adaptation through ecosystem resilience.

The event was also attended by Assistant Deputy Secretary, UAE Ministry of Climate Change and Environment, Mohamed Salman Alhammadi; Senior Natural Resources Management Specialist, World Bank, Ambroise Beriner; President Director, Sucofindo, Jodi Triananda Hasjim; and Executive Director, Tropical Forest Alliance, World Economic Forum, Jack Hurd.

As a leading company in the energy transition sector, Pertamina is committed to supporting the 2060 Net Zero Emission targets and continues to encourage programs that impact the achievement of Sustainable Development Goals (SDGs). These efforts align with implementing environmental, social, and governance (ESG) in all Pertamina business lines and operations.

PERTAMINA, https://www.pertamina.com 

Media Contact
Sonitha Poernomo
Manager Corporate Communications
PT Pertamina Hulu Rokan (PHR)
M: +62 811-851-9273
E: sonitha.poernomo@pertamina.com 

President Director of PT Pertamina (Persero) Nicke Widyawati reiterated Pertamina’s commitment to supporting the Indonesian Government in achieving net zero emissions by 2060 at the 2023 UN Climate Change Summit or Conference of the Parties (COP-28), being held in Dubai, the United Arab Emirates, from November 30 to December 12, 2023.

In a discussion session at the Indonesian Pavilion, Widyawati explained that Indonesia faces an energy trilemma with three main issues: energy security, equality, and sustainability. To deal with these three issues, Pertamina has developed three comprehensive strategic initiatives: decarbonization of the company’s operations (scope 1), building new low-carbon businesses (scope 2), and implementing a carbon offset program (scope 3).

As a developing country, she said that Indonesia targets stable economic growth where energy catalyzes economic growth. Therefore, as a state-owned enterprise (BUMN), Pertamina places energy security as a top priority. However, Pertamina must manage the balance for energy equality, which includes energy accessibility, affordability, and energy sustainability in reducing carbon emissions in our operations for scopes one, two, and three, Widyawati said.

She said that Indonesia is not ready to switch all fossil fuels to renewable energy, as this would endanger national energy security. Therefore, Pertamina has developed initiatives for managing sustainability while maintaining energy security and strengthening energy equality.

Pertamina must maintain its primary business, oil and gas, because the Indonesian government aims to increase upstream oil and gas production from 700,000 barrels per day to 1 million barrels per day in 2030. But this is done using a green operation method, she said. 

Pertamina is carrying out three initiatives towards energy efficiency, as it is essential and more manageable for reducing emissions. The contribution of energy efficiency to reducing emissions is around 39 percent. That is why we focus on energy efficiency in our operations: upstream, processing, and downstream, Widyawati said. 

Next is methane reduction. Methane can destroy the environment, which is worse than CO2 emissions. That is why we have set a target of a 7.6 percent reduction in methane, with carbon emissions (CO2) reduced by 5.5 percent and flare reduction and its utilization by 16.7 percent, she said. From these three operations through the end of last year, Pertamina successfully reduced 31 percent of emissions in its internal operations.

The second initiative is to increase the development of low-carbon products by producing biofuels. Indonesia is the eighth-largest country with forests, so Indonesia can produce biofuel. With the 35 percent biodiesel (B35) program last year, we reduced around 32 million tons of CO2 annually. We will add more B35 now and introduce the 40 percent biodiesel (B40) next year. Even in our new national energy policy, the target is up to 60 percent biodiesel (B60), Widyawati said.

Pertamina has a bio gasoline program that mixes bioethanol from sugar cane, corn, and cassava into gasoline. Pertamina will start with a bioethanol blending level of 5 percent (E5), and in the Indonesian National Energy Policy, it will gradually increase to a bioethanol blending level of 40 percent (E40). Regarding this biofuel, Pertamina has just launched sustainable jet fuel (Sustainable Efficient Fuel), which is mixed with crude palm oil (CPO).

Therefore, this program is the best option for Indonesia. There are three main benefits. First, we can reduce fuel imports through biofuel. Second, we can reduce emissions. And the third is creating jobs in upstream sectors, Widyawati said.

The third initiative is carbon offsetting. Even though fossil fuels and coal-fired power plants still exist, Pertamina must reduce emissions through carbon capture, utilization, storage, and nature-based solutions (NBS). She said the current capacity to absorb emissions from the global environment is up to 15 percent.

Carrying out these various initiatives, she said, Pertamina faces four challenges. The first is the regulatory framework to accelerate the development of renewable energy. The second challenge is related to technology, as Indonesia needs technology for all its abundant natural resources that can be used to produce energy. The next challenge is financial because Indonesia needs funding, especially for the initial stages of research and development. The fourth challenge is building capabilities and capacity. We believe that we need global collaboration to overcome these challenges, especially from governments, Widyawati said.

The Director General of Electricity, Ministry of Energy and Mineral Resources, Jisman P Hutajulu, invited all stakeholders to encourage the energy transition by utilizing New, Renewable Energy. The development of EBT in this energy transition is for the long term, Jisman said on the sideline of a discussion themed “Increasing Ambitions in Renewable Energy Targets for NDC Acceleration” on Thursday (Nov 30). 

As a leading company in the energy transition sector, Pertamina is committed to supporting the 2060 Net Zero Emission target by continuing to encourage programs that directly impact the achievement of Sustainable Development Goals (SDGs). These efforts align with implementing Environmental, Social, and Governance (ESG) in all Pertamina business lines and operations.

PERTAMINA, https://www.pertamina.com

Media Contact:
Fadjar Djoko Santoso
Vice President, Corporate Communication, PT Pertamina (Persero)
E: fadjar.santoso@pertamina.com