Pertamina to Lead Carbon Capture Ecosystem Development in Indonesia

State-owned energy giant PT Pertamina (Persero) has declared its intention to spearhead the development of a comprehensive Carbon Capture and Storage (CCS) and Carbon Capture, Utilization, and Storage (CCUS) ecosystem within Indonesia. This strategic move is a cornerstone of the company's Dual Growth Strategy, designed to achieve Net Zero Emission by 2060, or potentially earlier, and aligns with the Indonesian President's national agenda.

Emma Sri Martini, Director of Portfolio Strategy and Business Development at Pertamina, outlined how the company is adapting to global geopolitical shifts, climate change imperatives, and technological disruptions. The Dual Growth Strategy balances the maximization of Pertamina's core, or 'legacy,' business with the expansion of low-carbon ventures. The first pillar focuses on strengthening the upstream oil and gas sector through enhanced production and the application of CCUS technologies. It also includes revamping refineries, transforming fuel retail to anticipate the electric vehicle era, and bolstering the gas supply chain.

The second pillar of Pertamina's strategy is dedicated to developing low-carbon businesses to ensure energy resilience and foster national industrial downstreaming. This involves expanding biofuels like biodiesel and Sustainable Aviation Fuel, increasing geothermal energy capacity through its subsidiary PT Pertamina Geothermal Energy, and advancing the carbon ecosystem, including CCS/CCUS and carbon trading. This integrated approach positions Pertamina significantly across the entire CCS value chain, from emission sources to storage and monetization.

Currently, Pertamina has identified approximately 13 potential CCS/CCUS study locations spread across Sumatra, Java, Kalimantan, and Sulawesi. These sites collectively hold an estimated CO₂ storage capacity of 7.3 Giga tons (GT). A flagship project under development is the Asri Basin CCS Hub, which alone could store up to 2.9 GT of CO₂, accommodating both domestic and regional emissions. Pertamina views CCS as a critical element for decarbonizing its operations and broadening its low-carbon portfolio.

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Currently, the world community is striving to preserve the earth while extending the business life cycle of fossil fuels. Through the Dual Growth Strategy, Pertamina divides its focus into two main pillars by maximizing the main business (legacy business) and building a low-carbon business (low carbon business).