The key challenge of energy transition is dependence on fossil fuels

Jakarta – President Director of PT Pertamina Nicke Widyawati said that Indonesia’s main challenges in achieving energy security are dependence on fossil fuels, declining oil production, and growing national energy demand.

In addressing these challenges, she stressed the importance of diversifying energy, utilising local energy resources, and expanding access to cleaner energy sources.

Widyawati said that Indonesia plays a strategic role in the global supply chain for energy transition, with rich renewable energy sources and essential materials such as nickel, bauxite, and copper, as well as potential for National Renewable Energy (NRE), Nature-Based Solutions (NBS), and Carbon Capture, Utilisation, and Storage (CCUS).

Pertamina’s three main roles in facing energy challenges, she said, are increasing energy security to ensure national energy security by increasing supply capacity. Then, domestic resource mobilisation focuses on reducing the oil and gas trade deficit.

Pertamina has taken strategic steps in this context, including operational decarbonisation, establishment of low carbon emission businesses, and carbon reduction programmes. Nicke said Pertamina’s strong support for NZE involves transforming how it does business and manages its operations to prioritise sustainability.

Widyawati said the obstacles that Indonesia faces in accelerating the energy transition include access to competitive financing, technological advancement, early-stage funding, and human resource capacity building remain challenges. To address this, she said obtaining proper support and encouragement through strategic partnerships is essential. (Hartatik)

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