BUMN international conference underlines energy transition commitment

BUMN international conference underlines energy transition commitment

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Jakarta (ANTARA) – The State-Owned Enterprises (BUMN) Ministry held an international conference to affirm the BUMN commitment to supporting the energy transition, implementing energy sustainability principles in the future, and stabilizing the economy.

The “BUMN International Conference: Driving Sustainable and Inclusive Growth” was held at the Bali Nusa Dua Convention Center (BNDCC), Nusa Dua, Bali, on Monday (October 17, 2022), according to a statement received in Jakarta on Thursday.

The event was attended by Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan; Minister of BUMN Erick Thohir; and the board of directors of several state-owned enterprises. Meanwhile, Vice President Ma’ruf Amin delivered a message at the event via video.

In his speech, Pandjaitan lauded the big role of BUMN in Indonesia. According to him, state-owned enterprises have contributed a lot in various aspects, ranging from the field of energy supply, the economy, to the health sector, especially during the COVID-19 pandemic.

He further said that many transformations have taken place in Indonesia that require the support of BUMN. Thus, state-owned enterprises have two main roles, namely as value creators and agents of development.

State-owned enterprises are expected to provide goods and services needed by the entire community in all corners of the country.

“I think in this era, the role of BUMN is very big. They play a very vital role, especially in times of crisis. So, in the last three years, if you look at it now, the role of BUMN has contributed greatly to stabilizing our economy,” Pandjaitan said.

Furthermore, the transformation carried out by BUMN by changing the concept from superholding to subholding has made companies more efficient and resilient, he added. As of December 2021, the number of state-owned enterprises has reduced from 108 to 92.

“The improvement in the performance of BUMN is one of the drivers of increasing non-tax state revenues, with an increase of up to 36 percent throughout 2022, up to 105 percent of the target set by the government. At this event, we are here to witness the role and milestones of BUMN in strengthening the nation’s economy,” he added.

Meanwhile, Thohir said that the results of the transformation show that the efforts made by BUMN have been on the right track and must be sustained. The goal is that BUMN must carry out their role as value creators and development agents more effectively and provide real benefits to the nation and society.

The BUMN international conference was a part of the government’s efforts to inform the international community about the transformation that has taken place and the importance of the BUMN for the Indonesian people, he added.

He further said that the series of BUMN international conferences discussed topics that supported the government’s focus at the 2022 G20, namely digitalization, energy transition, financial inclusion, and health transformation.

Meanwhile, Pertamina President Director Nicke Widyawati said that at the international conference, the issue of energy transition became the main topic of discussion.

Pertamina is one of the BUMN that are highly committed to implementing the energy transition, and several steps have been taken by Pertamina to support this, she informed.

She said that Pertamina is nursing the ambition of becoming a leading global energy company with a good reputation that is recognized as an environmentally friendly, socially responsible, and good governance company.

“This has become Pertamina’s commitment to implement the environmental, sustainability, and governance (ESG) framework in all lines of the company’s business to encourage business sustainability in the future,” Widyawati added.

As an energy company, she noted, Pertamina has a big responsibility to be a pillar for achieving net-zero emissions (NZE) in Indonesia based on the principles of affordability and fairness.

To achieve net-zero aspirations, Pertamina has developed a holistic strategy involving two pillars and three enablers (supporters).

The two main pillars include efforts to decarbonize business activities and the development of a new green business.

“While the three enablers that will support Pertamina’s plan to encourage net-zero namely, first, to develop carbon accounting standards that have been approved by national and international regulations, as well as the implementation of carbon pricing, starting with Pertamina internally,” she informed.

The second is building a sustainable organization that will ensure that Pertamina’s business is on the right track for achieving the net-zero road map goals and the third, ensuring that stakeholder engagement fully supports the targets and commitments of the national NZE, Widyawati said.

Through this holistic strategy, Pertamina succeeded in achieving a 29-percent reduction in carbon emissions in 2021, which was originally the target for 2030.

The series of BUMN international conferences were attended by more than one thousand participants from G20 countries, such as the United States, Britain, India, Australia, South Korea, China, Japan, and Russia, as well as representatives of non-G20 countries such as Spain, the United Arab Emirates, and Singapore.

The participants included leaders from various backgrounds, including ministries/institutions, state-owned enterprises, the house of representatives, embassies of fellow countries, international organizations, academics, researchers, and domestic and foreign investors. 

Related news: Encouraging blended finance for energy transition through G20

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