These Are 5 Strategic Initiatives Of The Ministry Of SOEs Pursuit For Carbon Emission Free Targets

Deputy Minister of SOEs I Pahala Mansury. (Photo: Doc. Antara)

JAKARTA - The Ministry of State-Owned Enterprises (Kemen BUMN) carries out five strategic initiatives to encourage state-owned companies to build portfolios and ecosystems in order to support decarbonization and achieve Net Zero Emission (NZE) 2060.

Deputy Minister of SOEs I Pahala Mansury explained that one of the big focuses of the Ministry of SOEs is encouraging SOEs not only to provide positive values and impacts for the people of Indonesia, but also to innovate and change their business model.

"So we see changes in decarbonization as an opportunity for Indonesian SOEs. Because we see that as an opportunity to really increase our energy security and energy independence," Pahala said in his statement, Tuesday, October 18.

Pahala said that in the short term the changes would accelerate as a result of the Russia-Ukraine crisis.

However, he continued, the Ministry of SOEs looked at the medium-term trend, offering 5 main initiatives.

First, form a carbon market ecosystem between SOEs to accelerate the decarbonization agenda and establish a role model for the formation of the national carbon market and run the Nature Base Solution (NBS).

Second, developing EBT capacity, including Geothermal, Biomass, Biofuel, and others.

Third, build an EV ecosystem to reduce dependence on fuel oil, reduce imports and fuel subsidies.

Fourth, the energy transition mechanism through efforts to reduce dependence on coal and fifth power plants, developing a green industrial cluster.

Furthermore, according to Pahala, the Government has determined that Indonesia can actually achieve NZE by 2060 and reduce emissions by around 32 percent by around 2030.

For this reason, in terms of Pahala, SOEs must be able to develop an initiative portfolio, either for each SOE or as a SOE ecosystem or BUMN in collaboration with others to help achieve the National Determined Contribution (NDC).

In the Ministry of SOEs, since last year, we have determined that every year we must have KPI. At least what will be the target of reducing emissions has been determined. Second, what should be done and what is the initiative to build business opportunities," concluded Pahala.