Medco Boss Values NZE 2060 Target Is Not Realistic

JAKARTA - President Director of PT Medco Energi Internasional Tbk Hilmi Panigoro assessed that Indonesia's target of achieving Net Zero Emission (NZE) by 2060 is unrealistic.

The whole world is currently committed to carrying out energy transitions, including Indonesia and many companies that also contribute to their commitment to the success of the energy transition.

"My question is, is that commitment realization to aviation? When I was a company, we wanted to join 2060, we wanted to net zero. Join the country, if possible, 2050 or sooner," said Hilmilam, his presentation at Tripatra Engineering Summit, Friday, October 13.

According to Hilmi, this is difficult to achieve because it has to replace fossil fuels such as coal which are currently widely used as power plants by PLN.

"PLN has 23 GW base loads. If it wants to be replaced within 25 years, I don't think it's realistic," continued Hilmi.

He also admitted that he could not explain the milestones his company has achieved in the next 12 years.

According to him, the government needs to draw up clear plans including the use of feasible technology.

"If it has not been achieved it is just a dream. But as a global citizen it is our responsibility, relatist is a bit difficult," continued Hilmi.

He continued, last year the world still consumed 8.3 billion tons of coal and this year, although the whole world is talking about energy transitions, the world will still consume 9 billion tons of coal.

"So the world still needs coal, the world still needs oil and gas. So our perspective as traders must be used as our opportunity. Supply is suppressed, demand has not changed, what is happening? Commodities are increasing," said Hilmi.

For this reason, he explained that he would continue to develop necessary energy sources such as coal, oil, and gas.

Moreover, he said, Indonesia is a developing country that needs to maintain economic growth.

Furthermore, Hilmi explained, new and renewable energy is still quite expensive in Indonesia.

"If you want to make EBT now using diesel, using wind, batteries that cost more than 15 cents, two things that we choose, PLN must double the rate or the state must increase subsidies which are also impossible. So to be realistic we will do our best and the best way is engineering solution to beat the challenge earlier," concluded Hilmi.