Expert: Apply Green Industry, Increase PHE Competitiveness In The Future

Photo: Doc. Antara

JAKARTA - Environmental economist IPB University Aceng Hidayat assesses the positive implementation of the green industry PT Pertamina Hulu Energi (PHE) as PT Pertamina's Upstream Subholding (Persero). By implementing the green industry, which, among other things, through decarbonization measures, will further increase PHE's competitiveness in the future.

"Yes (increasing PHE's competitiveness). Because currently the demand for green industrial products in the world is very large. So that in the future, companies with environmentally friendly production processes will survive. If PHE or Pertamina really has carried out good decarbonization practices now, in the future they will get better space in the energy market," said Aceng to the media, Monday. August 28.

According to Aceng, the implementation of the low-carbon production process is a long-term investment. Not only for the next year or two. Not only increasing competitiveness, the application of the green industry, but also increasing the credibility of the company.

"Companies or industries that implement the current low-carbon production process are considered to have a better reputation," he added.

PHE does continue to be committed to reducing carbon emissions. Among other things, through the implementation of six pillars of corporate decarbonization. Namely energy demand & efficency, gas recovery & asset integrity, low carbon power, low carbon heat, Carbon Capture Storage (CCS) and Carbon Capture Utilization and Storage (CCUS), as well as offsetting through natural based solution.

Through the implementation of the six decarbonization pillars, at the end of last month PHE even recorded an emission reduction of 480 Kilo Ton C02eq or the equivalent of 110 percent of the target in July. The reduction in emissions was carried out by Pertamina Hulu Energi, both from regional and subsidiary affiliated companies.

The decline in emissions, according to Aceng, is indeed positive. Moreover, he continued, so far the energy sector, manufacturing industry and motorized vehicles have contributed the most to carbon pollution.

"That's good for Pertamina. As long as it lowers its emissions it has contributed to cooling the earth," said Aceng.

That is why, Aceng also hopes that PHE's steps can become a business model for other SOEs that produce gas emissions.

"Indeed, it must be noted that the green industry in the short term requires large investments. But we must think ahead, don't be half-hearted, just looking for profit," said Aceng.

Aceng also hopes that PHE will not simply suppress the carbon produced by the production process. More than that, it also slowly implements clean technology.