Indonesian PT Pertamina eyes green bond issuance by 2022
Geothermal pipes of Pertamina, Indonesia (source: zmiyatul.blogspot)
Alexander Richter
10 Apr 2021
State-owned PT Pertamina is eyeing to issue green bonds to fund renewable energy investments in Indonesia by 2022, particularly for its geothermal development.
Local news in Indonesia report that state-owned PT Pertamina (Persero) is interested in issuing green bonds in order to increase equity to complete renewable energy projects. In particular, for geothermal projects, which in the next five years will be encouraged by Pertamina to contribute more in Indonesia. These news come separate from plans of an IPO of Pertamina Geothermal Energy, and potential merger of all three state-owned geothermal companies into one holding.
Pertamina Finance Director Emma Sri Maritini admitted that for the last few years, it was difficult for Indonesia to get green funding. This is because fossil energy still dominates the energy sector today. It’s just that, seeing government policies that encourage new energy to be a priority, the opportunities for green funding can be wide open.
“We see an opportunity to be able to participate in this green bond issuance . Maybe not for this year. But for the next year (2022), especially for funding the geothermal project we are developing, it is very suitable for green bonds ,” said Emma in a webinar this week.
Emma also explained that currently Pertamina itself is also gradually diversifying its business from fossil fuel to renewable energy. One of them said Emma in the geothermal sector. “We of course also carry out geothermal development. We also have a subsidiary that focuses on developing this geothermal potential,” said Emma.
Emma explained that so far Pertamina’s income has been supported by fossil energy. New energy only contributes at least five percent of total revenue. However, due to the commitment to support clean energy, the company is targeting revenue from the renewable energy sector to reach 10-15 percent.
“In our master plan, at least in the next five years our revenue in the clean energy sector could increase by 10-15 percent,” said Emma.
Emma explained that seeing Pertamina’s potential and focus in the future, the company does not close itself off to the possibility of issuing Green Bonds. It’s just that, maybe Emma said it could be done directly by her subsidiary. “So maybe it can be done by our subsidiary that is focused on geothermal energy,” said Emma.
Source: Republika
