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Pertamina plans to issue first-ever green bond by 2022
The oil and gas giant is the second state-owned energy firm to unveil its plans to issue a sustainable finance instrument in a bid to join the global race toward energy transition.
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Technicians work on a geothermal power plant operated by state-owned oil and gas holding company PT Pertamina in West Java, as seen in this undated handout photograph. (Courtesy of Pertamina)
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tate-owned oil and gas holding giant Pertamina is planning to issue its maiden green bonds within the coming year to finance its geothermal business.
Pertamina is the second Indonesian state-owned energy firm to unveil its plan to issue a sustainable finance instrument after the state electricity firm (PLN), respectively the fourth and first largest state-owned enterprise by assets.
Finance director Emma Sri Martini said Thursday that the bonds would help expand Pertamina’s green energy business to contribute between 10 percent and 15 percent of to total revenue within five years, compared to the current figure of under 5 percent.
“We realize that the sunset for fossil fuels will happen in 30 to 40 years down the road. Like it or not, we have to prepare to enter the energy transition period,” Emma said at a webinar hosted by sustainable finance nonprofit Climate Bonds Initiative (CBI).
Read also: Pertamina inks deal over 1.2 MW solar PV project with GBK sports complex
She also noted that Pertamina’s bonds could be issued through its geothermal subsidiary, PT Pertamina Geothermal Energy (PGE), and that Manulife Investment Management was a potential bondholder. Emma added the company might also issue bonds to develop its green capacities, including solar.
Data compiled by CBI shows that Southeast Asian companies had raised $3.09 billion for geothermal projects through green bonds between 2016 and 2020. Of the total funds, Filipino companies raised 45.2 percent and the remaining 54.8 percent by Indonesia’s Star Energy Geothermal.
