Pertamina’s Concrete Steps Toward a Low-Carbon Future
Amid growing global concerns about climate change, greenhouse gas emissions remain a major issue. Energy companies worldwide race to show commitment to sustainability. In Indonesia, Pertamina stands as a pioneer in the national energy transition, striving to balance business growth with environmental responsibility.
Recently, Pertamina recorded a major milestone by reducing its carbon emissions by 1.7 million tons of CO₂e in 2024. This achievement is part of the company’s efforts to reach Net Zero Emissions (NZE) by 2060—or sooner. Beyond emission reduction, Pertamina also earned third place globally in the ESG Rating for the integrated oil and gas sub-industry, a recognition of its strong performance in environmental, social, and governance (ESG) practices.
Pertamina’s Commitment to Sustainability
As a state-owned energy company that plays a vital role in national energy security, Pertamina consistently affirms its commitment to ESG principles. The company’s strategic vision extends beyond financial performance, placing equal importance on its social and environmental impacts.
This commitment is evident in Pertamina’s long-term decarbonization roadmap and policies. The company has laid out a gradual strategy to cut carbon emissions, expand its renewable energy portfolio, and improve energy efficiency across its operations. Pertamina actively participates in global sustainability forums such as COP, the ASEAN Energy Business Forum, and other international initiatives, reinforcing its role in the global green transition.
Emission Reduction Strategies and Technologies
To achieve its goal of cutting 1.7 million tons of carbon emissions, Pertamina employs various advanced strategies and technologies across its business lines. These efforts are structured around four main approaches:
1. Energy Efficiency Optimization
Pertamina enhances efficiency in its refineries, distribution systems, and power generation units. The use of real-time emission monitoring and digitalized process control systems helps to reduce emission intensity significantly.
2. Biomass Co-firing and Renewable Energy Integration
In the power sector, Pertamina integrates biomass as a partial replacement for coal through co-firing schemes. The company also deploys solar panels and utilizes geothermal energy within its assets to further reduce its carbon footprint.
3. Carbon Capture, Utilization, and Storage (CCUS)
Pertamina is developing CCUS technology to capture and store emissions from its oil and gas operations. This solution holds high potential for large-scale emission reductions at major point sources.
4. Green Fuel and Bioenergy Development
Pertamina prioritizes the development of green refineries and biofuels such as D100 and bioavtur (bio-aviation fuel). These innovations align with Pertamina’s strategy for clean, locally sourced energy alternatives.
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Global Recognition: Third in ESG Rating for Integrated Oil & Gas
Pertamina’s emission reduction achievements have not only been acknowledged domestically but also recognized internationally through ESG ratings by Sustainalytics, one of the world’s leading ESG rating agencies. According to its latest report, Pertamina was ranked third globally among companies in the integrated oil and gas sub-industry.
This ranking indicates that Pertamina has low ESG risk exposure and demonstrates strong governance, social impact management, and environmental sustainability. Such recognition proves that a state-owned company from Indonesia can compete on the global stage in responsible and sustainable business practices.
A Responsible Energy Transition
Pertamina’s success in reducing carbon emissions by 1.7 million tons of CO₂e is a concrete demonstration that conventional energy companies can make a significant contribution to climate change mitigation. Through a combination of strategic technologies, executive commitment, and ESG-driven governance, Pertamina is setting a new benchmark for sustainable business operations in Indonesia.
This achievement should inspire other players in the energy sector to adopt similar actions to reduce environmental impacts. By continuing to invest in clean energy and fostering partnerships with stakeholders, Pertamina strengthens its position as a key driver in Indonesia’s responsible and sustainable energy transition. A low-carbon future is not just a vision—Pertamina is proving it can become a reality.
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