Pertamina Allocates 14 Percent Of Capex To Support Energy Transition

Pertamina President Director Nicke Widyawati. (Photo of Pertamina Doc)

JAKARTA - Pertamina President Director Nicke Widyawati said the energy transition is the key to preventing catastrophic global warming and climate change.

However, this energy transition should not interfere with the unfinished development agenda of developing countries.

Moreover, the average energy consumption, emission expenditure and income per capita of developing countries are generally below developed countries.

As an Energy BUMN, continued Nicke, Pertamina has allocated capital expenditure or capital expenditure (capex) of 14 percent of the total investment funds to make the energy transition in Indonesia successful.

This figure is much higher than the average investment of world energy companies for renewable energy of 4.3 percent

“Overcoming climate change is one of Pertamina's Sustainability strategies, with a target of reducing emissions by 30 percent by 2030 or above Indonesia's NDC target in 2030. 27 percent from 26 percent in 2010 baseline,” said Nicke during a virtual “Sustainable Finance for Climate Transition” dialogue in Jakarta, Thursday, July 14.

Nicke, who also serves as the Chair of the Task Force Energy, Sustainability, and Climate B20, added that the energy transition must be well planned, to ensure energy security and energy accessibility for all communities are maintained.

Pertamina, he continued, will accelerate the energy transition towards sustainable energy use, ensure a fair and affordable transition and improve energy security.

According to Nicke, the energy transition requires a large amount of technology and costs. For this reason, Pertamina is open to partnerships and collaborations, in order to encourage innovation and reduce technology costs.

"Pertamina's ambition is to become a leading global energy company with a good reputation and to be recognized as a company that implements ESG principles in an integrated manner," said Nicke.

Present at the hybrid event, Minister of Finance Sri Mulyani, President Director of PLN Darmawan Prasojo, President Director of PGE Ahmad Yunianto and Vice President of Jinko Solar Co. Ltd., Ms. Dany Qian.