Demanded To Contribute To Reducing Carbon Emissions, This Is Erick Thohir's Way Of Decarbonizing SOEs

Illustration. (Doc. Between)

JAKARTA - State-owned companies are required to make a major contribution to reducing carbon emissions (decarbonization). By 2030, the government is targeting a 29 percent reduction in emissions. To support this effort, the Ministry of SOEs has assigned the Holding of Survey Service BUMN or ID Survey to prepare a pilot project in an effort to decarbonize SOEs.

Deputy Minister of State-Owned Enterprises I Pahala Nugraha Mansury said the Ministry of SOEs had initiated the identification and mapping of the based lining or emission calculations produced by each SOE.

"We have also started calculating based lining or calculating the estimated emissions produced by each BUMN, and the initiatives that we identified earlier how this can contribute to Indonesia's commitment to be able to reduce emissions by 29 percent in 2030 later," said Pahala, during the signing of the MoU on the decarbonization of SOEs, Wednesday, February 2.

Then, continued Pahala, after identification and calculations, the Ministry of SOEs also carried out validation and verification.

"Together with what was conveyed by the mother about how our national commitments are related to each sector and also each sub-sector," he said.

According to Pahala, although the initiatives have been launched, the Ministry of SOEs will review the strategies carried out in accordance with the commitments set.

"We'll see if there are certain sectors that turn out to be lower than what we have calculated and we also estimated when we made the workshop last year," he said.

"Of course, we need to see if there are really any efforts that we need to do to be able to achieve national commitments for each sub-sector," he continued.

Pahala also emphasized that SOEs will take a leading role in the process of accelerating deforestation, reducing emissions or low-carbon solutions, developing a green economy ecosystem and utilizing the economic value of carbon.

Furthermore, Pahala said that he would also start doing carbon offset trading which is expected to start in April this year. He said, at the beginning this trade will be carried out voluntarily and in the future it will synergize with policies from the Ministry of Environment and Forestry, as well as the coordinating Ministry for the Economy.

Currently, seven SOEs have agreed to sign a memorandum of understanding (MoU) on decarbonization. The SOEs involved include PT Bureau of Classification Indonesia (Persero) or BKI PT Pertamina (Persero), PT PLN (Persero), PT Perum Perhutani, PT Semen Indonesia Tbk, PT Pupuk Indonesia (Persero), MIND ID, Holding Perkebunan Nusantara or PTPN III (Persero), and PT Energy Management Indonesia (EMI).

On the same occasion, the President Director of the Indonesian Classification Bureau, Rudiyanto Rudiyanto, in the process of accelerating SOEs will contribute 15 percent to gross domestic product (GDP) and is an emitter of approximately 20 percent of national emissions.

Companies, said Rudiyanto, have important and complete elements in the representation of the carbon market ecosystem in Indonesia, where companies can act as sellers (emission carbon sellers), buyers (emission carbon buyers), as well as verification and validation agencies (verifications & validators).

"So that carbon market trading can be spearheaded by its implementation within the scope of SOEs, further through this implementation it will encourage innovation in the green energy sector, increase state revenue through carbon tax and carbon trading schemes, and reduce greenhouse gas emissions until they are fulfilled. NDC 2030," said Rudiyanto.