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IDXCarbon launches, Pertamina becomes the sole seller in Indonesia’s carbon market
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s part of its commitment to supporting the sustainability and energy transition agendas in Indonesia, Pertamina participated in the launch of the Indonesia Stock Exchange (IDX) carbon market, known as IDXCarbon, on Tuesday. IDXCarbon was inaugurated by President Joko “Jokowi” Widodo.
Other than the President, Coordinating Maritime Affairs and Investment Minister Luhut Panjaitan, Financial Services Authority (OJK) chairman Mahendra Siregar and IDX president director Iman Rachman, the launch of IDXCarbon was also attended by Pertamina president director and CEO Nicke Widyawati, Pertamina New & Renewable Energy (NRE) president director Dannif Danusaputro and Pertamina NRE strategic planning and business development along with Pertamina director Fadli Rahman as the carbon credit seller, and Pertamina Hulu Energy president director Wiko Migantoro, Pertamina Patra Niaga president director Riva Siahaan and Pama Persada director Theresa as the carbon credit buyer.
“This is a very important and strategic milestone for Pertamina because it is a tangible manifestation of Pertamina's commitment to continuously accelerate the energy transition toward net-zero emissions. So, in this first carbon trade, the carbon units being sold are from Pertamina NRE, specifically from the Lahendong Geothermal Power Plant Unit 5 and 6. It can be observed that in other countries, it takes three to four months for a transaction to occur, but here, it's already sold out, the units are all gone now. So, the market has responded positively,” said Pertamina CEO Nicke.
Nicke added that, when compared with neighboring countries, the Indonesian carbon exchange is moving swiftly with a substantial volume. “So, we have every reason to be proud, and I would like to invite all levels of management, as well as our sub-holdings and subsidiary companies, to actively contribute and play a role in all of Indonesia's net-zero emission programs because the Pertamina Group holds a crucial position in achieving this. Today, the President has stated that this is a tangible manifestation, not just a plan for Pertamina. We are taking concrete steps, and today is one of the tangible pieces of evidence where the Pertamina Group is driving the energy transition toward net-zero emissions by 2060” added Nicke.
Pertamina NRE, as a subsidiary of Pertamina and the carbon market aggregator within the Pertamina Group, was the sole seller transacting on IDXCarbon during the launch. Pertamina NRE possesses carbon credits from the Lahendong Geothermal Power Plant Unit 5 and 6, totaling approximately 864,000 tCO2e, generated during the period from 2016 to 2020. These carbon credits have met the national standards set by the Environment and Forestry Ministry.
Quoting from the IDX website, the companies that acted as buyers of carbon units in the inaugural IDXCarbon trading included Bank Central Asia, Bank CIMB Niaga, Bank DBS Indonesia, Bank Mandiri, PT BNI Sekuritas, PT BRI Danareksa Sekuritas (a part of Bank Rakyat Indonesia), PT CarbonX Bumi Harmoni, PT MMS Group Indonesia, PT Multi Optimal Riset & Edukasi, PT Pamapersada Nusantara, PT Pelita Air Service, PT Pertamina Hulu Energi, PT Pertamina Patra Niaga, PT Truclimte Dekarbonisasi Indonesia and PT Udara Untuk Semua (Fairatmos).
“Carbon business development, encompassing carbon trading and carbon project development, is one of Pertamina NRE's priorities in supporting Pertamina's net-zero emissions strategy, as well as Indonesia's sustainability and energy transition aspirations. In addition to the carbon credit projects from the geothermal power plant managed by our subsidiary, PT Pertamina Geothermal Energy, in the medium term, we are also developing nature and ecosystem-based solutions (NEBS) projects. One of them is through a collaboration involving nine forestry concessions with Perhutani.” said Pertamina NRE CEO Dannif.
Pertamina will continue to collaborate with various stakeholders in building a strong, transparent, and trustworthy carbon market and ecosystem in Indonesia to achieve the national sustainability aspirations.
Pertamina NRE is firmly committed to supporting the goals of sustainable development. This commitment is evidenced by the recent achievement of an environmental, social and governance (ESG) score of 13 from Sustainalytics, a global ESG rating agency, which categorizes it as low risk. Pertamina NRE also ranks as the third-best globally in the independent power producer and traders (IPP & traders) sector.
