In July 2024, Pertamina NRE, a subsidiary of Indonesia’s state oil and gas company Pertamina, announced that it had sold approximately 460 000 tons of carbon dioxide equivalent.
The company was the pioneering seller of carbon credits during the launch of IDX Carbon‘s initial trading on September 26, 2023, and currently holds a dominating 93 percent share of the carbon credit market in Indonesia.
By leveraging their expertise in the oil and gas industry, Pertamina has now managed to translate their success into the carbon market.
Pertamina NRE holds carbon offsets from Units 5 and 6 of the Lahendong Geothermal Power Plant, which are overseen by its subsidiary PT Pertamina Geothermal Energy (PGE). The credits, verified to comply with the national regulations set by the Ministry of Environment and Forestry, total around 864 000 tCO2e and were produced between 2016 and 2020.
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Dicky Septriadi, the Corporate Secretary of Pertamina NRE, mentioned that in the future, Pertamina NRE’s carbon credits will not only be derived from geothermal power plants but also from other environmentally friendly energy sources.
For example, the Steam Gas Power Plant (PLTGU) at the Java-1 plant could produce around 3 million tons of CO2e annually, while the Sei Mangkei Biogas Power Plant (PLTBg), currently undergoing validation, is projected to generate 150 000 tons of CO2e from 2021-2023 and 200 000 tons from 2024-2027.
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Indonesia shows immense potential for sustainable projects, due to its abundant natural resources and suitable technology. Septriadi commented, “We have various green and clean energy portfolios that are potential sources of carbon credits. We are very open and enthusiastic to work with industries that have aspirations to reduce emissions from their operational activities.”
Methods such as carbon trading could play a vital role in helping Indonesia reach its environmental targets as the nation strives to meet its Enhanced Nationally Determined Contribution (ENDC) through a mix of domestic initiatives and support from the global community.
