Pertamina reaffirmed this commitment in conjunction with the inaugural launch of the IDX Carbon Exchange at the Indonesia Stock Exchange (IDX) in Jakarta by President Joko “Jokowi” Widodo, on Sept. 26.

President Jokowi stated that the launch of the carbon trading exchange in Indonesia is a tangible contribution to combating the climate change crisis, the results of which will be reinvested to preserve the environment through carbon emissions reduction. This is because of Indonesia's extraordinary potential in nature-based solutions and being the only country where approximately 60 percent of its carbon emissions reduction comes from the natural sector.

“If calculated, our carbon market potential could reach up to Rp 3,000 trillion, or possibly even more. A tremendously significant figure, which undoubtedly presents a new and sustainable economic opportunity, aligning with the global trend toward a green economy,” said Jokowi during the opening of the exchange.

The President declared that the launch of the carbon market would be a significant step for Indonesia to achieve its nationally determined contributions (NDC) targets. Therefore, the President emphasized three things: using international carbon standards as a reference and utilizing technology for transactions to make them effective and efficient. Secondly, setting clear targets and timelines, both for the domestic and international markets. Lastly, regulating and facilitating voluntary carbon markets, in accordance with international community practices.

“And ensuring that these international standards do not interfere with Indonesia's NDC targets,” said Jokowi.

In line with the President's direction, Pertamina president director and CEO Nicke Widyawati said Pertamina, as an integrated company from upstream to downstream, played a crucial role in the carbon business and trade. Through its upstream subholding, Pertamina has initiated the implementation of carbon capture storage (CCS)/carbon capture utilization and storage (CCUS) technology by conducting the first carbon dioxide injection at the Pertamina EP Jatibarang field in Indramayu, West Java.

“In addition to contributing to carbon emissions reduction, these efforts also serve to enhance oil and gas production in Pertamina's upstream fields, thanks to CCU/CCUS technology,” said Nicke.

For the development of carbon trading, Pertamina New & Renewable Energy (PNRE), as a subholding, plays the role of an internal trader within the Pertamina Group. PNRE will also become a key player in carbon trading, as it already possesses certified supplies from the Environment and Forestry Ministry.

Carbon trading is also conducted by PT Pertamina Patra Niaga Commercial & Trading subholding by opening business opportunities with domestic companies as potential customers, both domestically and internationally.

“Pertamina Group is committed to developing an internationally standardized carbon trading ecosystem and supporting the government's goals in addressing the climate crisis,” explained Nicke.

Pertamina, as a leading company in the field of energy transition, is committed to supporting the net-zero emissions 2060 target by continually promoting programs that directly contribute to achieving the UN Sustainable Development Goals (SDGs). All of these efforts align with the implementation of environmental, social and governance (ESG) policies across all aspects of Pertamina's business and operations.

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