CEO and President Director of Pertamina Nicke Widyawati and CEO of Masdar Mohamed Jameel Al Ramahi formally exchanged the MoU document at the United Arab Emirates Presidential Palace in Abu Dhabi on Thursday (November 4).
The inking of the MoU was witnessed by crown prince Sheikh Mohamed bin Zayed Al Nahyan and President Joko Widodo, as noted in a release issued by PT Pertamina and received here on Monday.
The signing ceremony of the MoU, also covering the development of clean energy solutions, was additionally attended by several Indonesian ministers: coordinating minister for maritime affairs and investment, coordinating minister for economic affairs, minister of SOEs, minister of foreign affairs, and minister of Trade.
"Indonesia's government owns an energy transition roadmap that is translated in the National Energy Grand Strategy wherein renewable energy will constitute 23 percent of Indonesia's energy mix in 2025 and reach 31 percent by 2050. With the roadmap, we believe that the energy sector will reduce emissions by 314 tons of CO2," Widyawati noted.
She stated that Pertamina, as the biggest energy SOE of Indonesia, is highly committed to supporting the government’s goal. Pertamina’s initiatives in renewable energy development encompass increasing self-operated installed geothermal capacity to 1,128 MW in 2026 and developing solar and wind power as well as green and blue hydrogen.
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Widyawati affirmed that collaborations were paramount to energy transition, to which end, a strategic agreement between the two reputable companies will potentially expedite the energy transition process.
Pertamina is transforming toward a clean energy business within the subsequent decades. As part of the ambition, Pertamina established a sub-holding named Pertamina NRE that focuses on power and new renewable energy businesses.
Meanwhile, Masdar is a company based in Abu Dhabi and is part of Mubadala, Abu Dhabi’s state-owned enterprise. Masdar’s business focuses on renewable energy. Currently, Masdar actively operates in 30 countries, including the UAE, the US, Australia, India, and Indonesia.
"This agreement demonstrates the depth of Masdar’s commitment to supporting Indonesia in its energy transition and in achieving its net zero goal," according to Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar.
"We look forward to building on our existing presence in Indonesia and supporting the nation’s economic development. By taking bold climate action, Indonesia will be able to reap economic and social benefits and deliver a more sustainable future for its people and for the planet," he emphasized.
Indonesia has huge renewable energy potential, reaching over 400 GW, though merely 10 Gigawatts (GW), or 2.5 percent, is utilized until today.
With such abundant reserves, Pertamina expects to become the government’s partner in Indonesia’s energy transition process.
Pertamina remains highly committed to building sustainability in Indonesia through implementing environment, social, and governance (ESG) aspects within its business.
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Reporter: Yuni Arisandy Sinaga
Editor: Rahmad Nasution
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