President Director of Pertamina Promotes Indonesia’s Energy Transition at FAO News Forum – 5 hours ago

Rome, CNBC Indonesia – Clean energy is a keyword amidst climate change which is making the world turbulent. The food crisis due to drought and changing weather means that an energy transition policy towards environmentally friendly energy is mandatory.

The energy crisis, food crisis and water crisis are currently challenges faced by all countries in the world.

This condition is one of the hot topics discussed at the 2023 World Food Forum held by the Food and Agriculture Organization (FAO) in Rome, Italy.


Pertamina President Director Nicke Widyawati was a speaker in one of the sessions at the forum. In his presentation, Nicke echoed Indonesia’s strategy through Pertamina to carry out the energy transition.

Nicke conveyed the complicated problems facing the world due to the Covid-19 pandemic crisis and also the war between Russia and Ukraine.

“The global crisis due to the pandemic and conflict hit the world, and had an impact on various countries including Indonesia,” said Nicke in the forum, Thursday (19/10/2023).

According to Nicke, this condition needs to be anticipated in the future by strengthening the food and energy sectors simultaneously. Because the two are related.

“To achieve the 2045 Golden Indonesia target, the main challenge to encourage economic growth is to meet energy demand, and at the same time reduce greenhouse gas emissions,” explained Nicke.

Therefore, continued Nicke, one main key is to switch to renewable energy sources that are more environmentally friendly. Although currently renewable energy cannot be relied on 100% to be the only one to meet national energy consumption.

Nicke explained the data, Indonesia is a country with stable economic growth, but also the number of middle class people is increasing. This means that energy consumption will increase by around 2.3% per year until 2060.

Pertamina President Director Nicke Widyawati was a speaker at the 2023 World Food Forum held by the Food and Agriculture Organization (FAO) in Rome, Italy.  (CNBC Indonesia/Wahyu Daniel)Photo: Pertamina President Director Nicke Widyawati is a speaker at the 2023 World Food Forum held by the Food and Agriculture Organization (FAO) in Rome, Italy. (CNBC Indonesia/Wahyu Daniel)
Pertamina President Director Nicke Widyawati was a speaker at the 2023 World Food Forum held by the Food and Agriculture Organization (FAO) in Rome, Italy. (CNBC Indonesia/Wahyu Daniel)

Seeing this condition, Indonesia must maintain energy security by increasing oil and gas production, building oil and gas infrastructure, electricity networks, increasing biofuel production and other renewable energy which is mostly produced domestically.

“The energy transition must not sacrifice energy security and affordability, especially in countries that still depend on fossil energy. Even in Indonesia’s grand national energy strategy, fossil energy is still available until 2060. Even though the proportion is reduced from 87% to 37% in 2060, ” explained Nicke.

He explained that technology and innovation play a key role in the successful implementation of the energy transition. The speed of technological development, such as the acceleration of renewable energy technology, electric vehicles, digital technology and many other clean energies, said Nicke, must be easily affordable for the public.

“Pertamina has an environmentally friendly business roadmap, one of which is the implementation of biofuel. Biofuel is one of the keys to decarbonization in the transportation sector,” said Nicke.

The current use of biofuel sourced from palm oil or B35, for example, has proven successful in reducing imports of fuel oil, especially diesel, increasing the use of renewable energy and at the same time reducing emissions. “It is estimated that in 2022 alone it could reduce emissions by the equivalent of 28 million tons of CO2,” explained Nicke.

Nicke also added that bioenergy in Indonesia will not disrupt food security because what is processed into energy is leftovers or dregs from vegetable sources. “We must ensure that efforts to achieve energy security can also be in line with efforts to achieve food security, nothing must be disrupted,” said Nicke.

“Currently energy security is a priority for Indonesia, but at the same time we also do not forget about energy affordability and sustainability,” said Nicke. Therefore, according to Nicke, it is important to carry out an energy transition, by using domestic natural resources to reduce carbon emissions and also bring energy independence and security to Indonesia.

Nicke said, Pertamina is committed to supporting the Indonesian government’s commitment to achieve Net Zero Emissions by 2060, or sooner, by
developing a road map for asset decarbonization, building environmentally friendly businesses and developing carbon offsets.

In fact, as a form of its commitment to implementing the energy transition, Pertamina has allocated 15% of its total capital expenditure or capex, for the development of a green, low-carbon business portfolio.

“This is much higher than the average allocated by other energy companies,” emphasized Nicke.

[Gambas:Video CNBC]

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