Indonesia’s national energy company Pertamina plans to spend up to $11 billion over 2022-2026 to help develop its renewables business as the company seeks to accelerate the energy transition.
Daniel Purba, Senior Vice President for Strategic Investment of Pertamina, said that the capital investment budget forms part of the company’s efforts to help increase its renewables portfolio from 1% of the energy mix in 2021 to 17% in 2030, as well as the target to reduce carbon emissions by 30% in 2030.
The planned $11 billion spend in the renewable energy sector represents 15% of Pertamina’s overall planned capital spending in the 2022-2026 term, which is still dominated by investment for its upstream oil and gas business. Some $34 billion will be spent on the upstream sector and $28 billion in the downstream sector, reported local media.
Pertamina Accelerates Energy Transition
On 20 March, Pertamina reaffirmed its commitment as a company “that cares about the environment, social aspects and good corporate governance, setting the energy transition program as the company’s top priority.”
President Director & CEO Nicke Widyawati outlined Pertamina’s strategic initiatives for developing environmentally friendly and sustainable energy at the Indonesia – Dubai Expo media briefing on 18 March, 2022.
“Pertamina is committed to being known not only as a global energy player but also as an environmentally friendly company, socially responsible and upholding good corporate governance,” said Widyawati.
Pertamina also supports Indonesia’s G20 Presidency, which targets energy transition as one of its main priorities. As part of the Business 20 Task Force on Energy, Sustainability, and Climate, Pertamina shares the priorities of G20 Indonesia as a catalyst for green recovery, along with the principles of energy security, energy equity and environmental sustainability.
Strategies include the development of green refineries and bioenergy, and the commercialisation of hydrogen, while Pertamina has also continued to increase the use of new and renewable energy, as well as implement carbon capture, utilisation, and storage (CCUS) to increase production in several fields, said Widyawati.
She added “that Indonesia’s geothermal resources are abundantly spread across the Ring of Fire.” Therefore, she believes that these resources could be a strong backbone to accelerate the energy transition, which is in line with the government’s goal to achieve net-zero emissions.
“We believe that by realising strategic programs in collaboration with many partners across countries, energy sustainability is not merely just a discussion, but also a concrete action in which the impacts can be experienced by everyone,” said Nicke, concluding her remarks.
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