A state-run electricity company PLN employee recharges an electric car in Cikokol, Tangerang, January 7, 2020. (Antara Photo/Muhammad Iqbal)

Indonesia’s Oil and Gas Sector on Path to Green Transition

DECEMBER 20, 2021

Jakarta. Indonesia’s oil and gas sector is well on the road to a green transition despite facing key challenges, said speakers at a recent webinar organized by the Italian Embassy in Indonesia in collaboration with ENI.

Featuring senior Indonesian government officials and eight industry experts, the webinar titled “Indonesia’s Oil & Gas Industry: Towards the Green Transition” highlighted key steps taken by the government and the private sector towards lowering greenhouse gas (GHG) emissions in line with the commitments made at the recent COP26 conference in Glasgow.

While the oil and gas sector remains critical to meeting Indonesia’s future energy needs, steps can be taken immediately to reduce its carbon emissions. More than 55 percent of Indonesia’s total energy generation is from fossil fuels so transitioning to renewables will take time and huge investments, said Tutuka Ariadji, the Director-General for Oil and Gas of the Energy and Mineral Resources Ministry. 

“As part of our long-term strategy towards achieving net-zero emissions by 2060, we have started with the implementation of energy-efficient measures as the first phase,” said Tutuka. The second phase will involve the use of decarbonized electricity in transport and buildings while the third phase will see the shift from coal to natural gas and renewables, he added.

In his opening remarks, Giovanni Brignone, Deputy Head of Mission and Head of Economic and Commercial Office, Embassy of Italy in Jakarta noted that climate change is increasingly perceived as the defining challenge of our times and has been the core of the COP 26 and G20 forums. Despite the achievement of some important results at the Rome G20 Summit and the COP 26 in Glasgow, there is a general consensus that not enough is being done and that States and economic operators need to step up their efforts.

“In particular, the oil and gas industry worldwide is facing increasing demands to clarify the implications of energy transitions for their operations and business models and to explain the contributions they can make to reducing greenhouse gas emissions and to achieving the goals of the Paris Agreement,” he said. 

“The increasing social and environmental pressures on many oil and gas companies raise complex questions about the role of these fuels in a changing economy and the position of these companies in the societies in which they operate.” 

Brignone added that Italian companies are ready and willing to partner with Indonesian oil and gas operators to implement technology that can help to reduce greenhouse gas emissions.

The webinar, which attracted more than 100 participants, also included Emma Rachmawati, Director of Mitigation of Climate Change at the Environment and Forestry Ministry, and Fatar Yani Abdurrahman, Vice Chairman of SKK Migas.

Industry experts who spoke during the webinar included Marjolijn Wajong, Executive Director, Indonesian Petroleum Association; Andrea Marsanich, Head of Forestry and REDD+ Initiatives, ENI; Dan Sparkes, Vice President Subsurface for Asia Pacific and India, BP Plc; Roberto Lorato, Director & Chief Executive Officer, Medco Energi; Maria Sferruzza, Executive Vice President Engineering Construction & Solutions, SNAM; Iwan Chandra, President Director, Baker Hughes Indonesia; Pierangelo Abela, APAC Onshore Business Development Manager SAIPEM; and Devan Raj, Managing Director Schlumberger Indonesia. 
 

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