Pertamina New & Renewable Energy (Pertamina NRE), alongside its subsidiary PT Pertamina Geothermal Energy Tbk (PGE), is solidifying its position as a key player in Indonesia’s carbon market. The recent amendment to the Carbon Credit Trading Agreement (PPKK) marks a significant step in supporting Indonesia’s Net Zero Emission (NZE) target by 2060.

The agreement was signed on December 13, 2024, by John Anis, CEO of Pertamina NRE, and Julfi Hadi, President Director of PGE. Simon Aloysius Mantiri, President Director of PT Pertamina (Persero), witnessed the event, highlighting the collaboration’s strategic importance.

The Lahendong Geothermal Power Plant Units 5 and 6 in North Sulawesi are central to this initiative. These facilities have already contributed 862,000 tons of CO2e carbon credits, accounting for 96% of Indonesia’s carbon market share since the IDXCarbon platform launched in September 2023. The amended agreement will further facilitate the sale of an additional 390,000 tons of CO2e credits in its third volume.

In a statement, Simon Mantiri emphasized Pertamina’s commitment to driving Indonesia’s green energy transition. “This collaboration supports our nation’s energy independence and brings us closer to achieving our sustainable energy goals,” he noted.

John Anis outlined Pertamina NRE’s broader ambitions, which extend beyond geothermal energy. The company plans to diversify its carbon credit portfolio through projects such as biogas, gas-to-power systems, and nature-based solutions. Additionally, Pertamina aims to incorporate carbon offsets into daily operations and events, ensuring a carbon-neutral approach to business activities.

Dominance in the Carbon Market

Since launching IDXCarbon, Pertamina NRE has demonstrated its leadership by aggregating and managing carbon credits within the Pertamina Group. This role has positioned the company as a significant contributor to Indonesia’s decarbonization efforts.

Further projects, such as the Sei Mangkei Biogas Power Plant, are under development to expand the company’s carbon credit portfolio. Utilizing Palm Oil Mill Effluent (POME), the Sei Mangkei plant is expected to produce between 15,000 and 25,000 tons of CO2e credits annually, advancing Pertamina’s market presence.

A Step Towards Net Zero Emission

Indonesia has committed to reducing greenhouse gas emissions by 31.89% independently and 43.2% with international support. Pertamina NRE’s initiatives align closely with these goals, positioning the company as a leader in the nation’s energy transition.

The company’s plans include exploring innovative carbon credit sources, such as hydrogen-based projects and large-scale geothermal developments. These initiatives underscore Pertamina NRE’s commitment to sustainable energy solutions while bolstering its market leadership.

With a clear roadmap and collaborative partnerships, Pertamina NRE is paving the way for a greener future. As Indonesia strives for energy independence and a low-carbon economy, Pertamina remains at the forefront of the nation’s sustainable energy transformation.