PHE And Pertamina Power Indonesia Technology Credit Carbon Agreement

PT Pertamina Hulu Energi (PHE) signed the Basic Agreement (HOA) on Credit Carbon Trade with PT Pertamina Power Indonesia (PPI) in Bali, Tuesday, October 18.

The signing of this HoA was carried out by PHE President Director Wiko Migantoro, KPI President Director Taufik Aditiyawarman, and Pertamina NRE CEO Dannif Danusaputro and witnessed by BUMN Deputy Minister I Pahala Mansury and Portfolio Strategy Director and Business Mining A. Salyadi Saputra.

PHE President Director, Wiko Migantoro explained, in carrying out this task, PHE also applies the principles of Environment, Social, Governance (ESG) as a basis for reliable operational activities to become an environmentally-minded company, be social responsible and have good governance.

In addition, PHE as the largest upstream oil and gas company nationally and also part of the large value chain of Pertamina which will be one of the contributors to the BUMN decarbonization effort on Indonesia's Net Zero Emission (NZE) roadmap in 2060.

"This decarbonization strategy is a part that cannot be separated from the ESG. This ESG commitment itself has also been proven through the acquisition of an ESG rating that managed to get a rating of 24 of 254 global oil-producing companies," he said in an official statement, Tuesday, October 18.

President Director of PT Kilang Pertamina Internasional, Taufik Aditiyawarman said, decarbonization is an implementation of the implementation of PT KPI's ESG in terms of reducing carbon emissions.

"This is of course to support Sustainable Development Goals No.13 concerning Climate Change Handling to take quick action to address climate change and its impacts," he continued.

Internal carbon trading of Pertamina is part of Pertamina Group's decarbonization effort as well as part of the NZE roadmap.

In this initiative, PHE and KPI as companies that produce carbon will purchase carbon credit from Pertamina NRE as compensation.

PT KPI also applies the principles of operation excellence including energy efficiency and efficiency of other production processes to support decarbonization.

"Pertamina NRE as the spearhead of Pertamina in the energy transition is ready to oversee efforts to decarbonize within the Pertamina Group. The signing of this HoA is a very good start for the carbon trading collaboration of Pertamina Group in the future and we are very enthusiastic to collaborate with other subholdings to support net zero emissions," said Dannif.

In this initiative, the Lahendong 5 and 6 PLTP were appointed to be the sources that compensated for the carbon emissions. The Lahendong PLTP is located in Lahendong, North Sulawesi, one of the geothermal areas managed by Pertamina Geothermal Energy (PGE), a subsidiary of Pertamina NRE.

PLTP Lahendong Units 5 and 6 is one of the CDM PGE projects that has held the Verified Carbon Standard (VCS) since 2018.