Pertamina NRE And Perhutani Sign HoA For NBS Project Development Cooperation

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JAKARTA - Pertamina Power Indonesia as Subholding Power & New Renewable Energy (Pertamina NRE) and Perum Perhutani signed a Head of Agreement (HoA) for cooperation in the development of the Nature Based Solution (NBS) project.

The signing of the HOA is a synergy to accelerate the achievement of Indonesia's Nationally Determined Contribution in 2030 as well as the vision of Net Zero Emission within the Ministry of State-Owned Enterprises (BUMN).

Deputy Minister I of BUMN, Pahala Nugraha Mansury said, the NBS project aims to intensify forest conservation activities in order to reduce the release of greenhouse gas emissions from the forestry sector and have a positive impact on the absorption of carbon emissions and environmental diversity.

Pahala added, the formation of the NBS company and the collaboration between Perhutani and Pertamina NRE is one of the strategic initiatives of the Ministry of SOEs to support decarbonization.

"With the NBS, we hope to protect the environment around us. We encourage new and renewable energy, which is related to the energy sector, considering it is one of the largest emitters," Pahala told reporters, Tuesday, June 21.

According to Pahala, Indonesia is one of the lungs of the world, with its forest area as well as its wealth and biodiversity.

Indonesia is encouraged to reduce emissions, with a target of up to 29 percent within 10 years in 2030.

"Of course we hope that the NBS project will be able to utilize, manage, and conserve forest areas with their development potential, in which case Perhutani and its subsidiaries act as land providers (land co) while Pertamina NRE is the manager of the NBS business through NBS co," said Pahala.

Meanwhile, the Chief Executive Officer of Pertamina NRE, Dannif Danusaputro, said that Pertamina NRE had the mandate to oversee Pertamina's energy transition.

Pertamina NRE also continues to strive to increase the utilization of EBT within Pertamina, as well as develop decarbonization solutions such as the EV ecosystem, green hydrogen, and energy efficiency as an effort to achieve the Pertamina Group's emission reduction target.

It is hoped that these efforts and collaboration with Perhutani Group can support Pertamina's Net Zero Emission aspirations in 2060.

Pertamina also plays an active role in the success of the G20 Presidency, especially in the issue of sustainable energy transition.

“One of our business focuses is low carbon solutions where nature based solutions are one of the main projects. This project has the potential to support the net zero emission target. For this reason, we are very enthusiastic about collaborating with Perhutani which holds state forestry concessions,” said Dannif.

Perhutani's Director of Operations and Social Forestry, Natalas Anis Harjanto, added that in addition to reducing the rate of deforestation or deforestation, the goal of this collaboration is to expand land cover which will increase the ability of forest areas to absorb greenhouse gas emissions.

"It has been identified as many as 9 potential locations in the forest area belonging to the Perhutani Group which will be the object and location of this project. The 9 prospective locations will be further carried out by FS to determine the feasibility of the project, especially regarding the impact on the environment as well as the financial and operational aspects, "he said.

Natalas added, based on the results of Pre FS, the NBS Project at these 9 locations will be able to generate carbon credits of more than 11.6 million tons of CO2 per year, so that with the right business scheme, this project will be able to become a new business that provides value. added on both sides.

As for the decarbonization efforts that will be carried out by Perum Perhutani, Natalas continued, namely suppressing or reducing forest damage and increasing land rehabilitation, suppressing forest fires, replacing the use of Marine Fuel Oil (MFO) to Compressed Nature Gas (CNG) in the forest product industry.

In addition, in the field of plantations Perhutani also reduces the use of inorganic fertilizers.

For NBS, it is a solution that refers to the sustainable management and optimization of natural resources through management reconfiguration.

In this activity, a joint planting of resin tree seedlings was also carried out in the Sentul Eco Edu Tourism Forest area as a symbol of the start of the collaboration between Pertamina NRE and Perhutani.