Jakarta – PT Pertamina (Persero) has allocated a budget of around USD 9.8-11.2 billion for the development of new, clean and renewable energy. The budget portion reaches 14% of the projected capital expenditure (capex) for 2022-2026 of USD 70-80 billion.
Dannif Danusaputro, Chief Executive Officer of Pertamina NRE, Subholding Power and Renewable Energy Pertamina, said that the projected upstream sector expenditure will absorb 45 percent of capital expenditure and 37 percent for the downstream sector.
“The remaining 4 percent is for other portfolios. On average, other energy companies project capital expenditures of around 4.3 percent,” he said at the “Company Strategy to Address Energy Transition and Investment” session at the 46th IPA Convention and Exhibition in Jakarta, Thursday (22/9).
Danusaputro said, the development of new and renewable energy (NRE) is in line with Pertamina’s commitment to use domestic resources to supply national energy needs towards green development and decarbonisation. Moreover, the need for costs to make the energy transition is very large, and has become a global demand. This requires all companies to redesign strategies in achieving production targets followed by emission reductions.
He said Pertamina’s energy mix will also change significantly in 2030. In 2021, Pertamina’s energy mix reached 2.3 MT Joule with 81 percent of processing products (excluding LPG), 15 percent of LPG processing products and 3 percent of gas.
“In 2030, the share of NRE will increase to 17 percent and gas 19 percent, while processing products will decrease to 61 percent and LPG will decrease to 3 percent,” said Danusaputro.
He added that to achieve the target, Pertamina has several long-running projects and activities, including geothermal, hydrogen development, participating in the development of electric vehicle batteries and energy storage systems, as well as building a green industrial cluster. In addition, Pertamina is also developing a green refinery, bio energy, nature-based solution (NBS) projects and the development of renewable energy such as solar PV, as well as other initiatives. In addition, Pertamina is also taking part in the dimethyl ether (DME) project which is targeted for completion in 2025.
Datuk Sazali Hamzah, EVP & CEO of Downstream Petronas, said that to be able to make the energy transition, he is targeting a 50 percent cash flow improvement. With better finances, Petronas management is projected to be able to finance the energy transition. “Petronas targets 30 percent of revenue in 2030 to come from non-traditional business (oil and gas business),” said Hamzah. (Hartatik)
Banner photo: Dannif Danusaputro, Chief Executive Officer of Pertamina NRE, Subholding Power and Renewable Energy Pertamina gave an explanation about the energy transition journey in Indonesia at the “Company Strategy to Address Energy Transition and Investment” session at the 46th IPA Convention and Exhibition in Jakarta, Thursday (22 /9). (Hartatik)