BALI (19/10) - PT Pupuk Indonesia (Persero) fully supports the efforts of the Ministry of BUMN to reduce national carbon emissions. This commitment was demonstrated through the signing of a Letter of Intent (LOI) on the Carbon Trading Pilot Project of the Ministry of BUMN Voluntary Carbon Market (KBUMN VCM) which was signed simultaneously with the State Owned Enterprise (SEO) International Conference in Bali on 17-18 October 2022.

 

SOE Deputy Minister I Pahala Mansury said that at this early stage, carbon trading was still voluntary. This is a form of preparation and collaboration of state-owned companies before the government officially enforces carbon trading. Also as an effort to support emission reduction targets, as well as encouragement to make an energy transition.

 

"We see that collaboration between SOEs themselves to build cooperation in producing energy and reducing emissions can be done. Our SOEs can also cooperate with other countries. In essence, how SOE can jointly carry out the energy transition, "explained Pahala.

 

At least eight state-owned companies have signed this LOI. They are Perum Perhutani, PT Inalum, PT PLN, PT Perkebunan Nusantara (PTPN), PT Pertamina, PT Semen Indonesia, and PT Bureau of Classification of Indonesia (BKI). In this case, BKI acts as a facilitator, while the other seven state-owned companies are parties willing to sell or buy in this carbon trading pilot project.

The eight state-owned companies wish to actively participate in the VCM KBUMN carbon trading pilot project based on achieving an annual target of reducing carbon emissions. As the Minister of SOE Erick Thohir wishes, SOEs are expected to become pioneers and role models in implementing decarbonization.

 

The Ministry of SOE has also formed a Decarbonization Project Management Office (PMO) in 2021. The aim is to ensure that the strategic projects and corporate actions of the seven SOEs can support the decarbonization target.

 

Meanwhile, the President Director of Pupuk Indonesia, Bakir Pasaman, stated that the company is also supporting the carbon trading pilot project initiated by the Ministry of SOE. According to him, this program is in line with the company's decarbonization roadmap which also supports the government's Net Zero Emission target in 2060.

 

“We will buy emissions from plantation companies, to cover the emissions we are still producing. But in the future, Pupuk Indonesia's factories will no longer produce carbon emissions. So that in the future we can become the party that sells carbon emission credits," said Bakir.

Carbon trading itself is a certified sale and purchase of carbon credits. In this case, each company or entity is given a maximum carbon emission limit. Meanwhile, companies that have controlled carbon emissions well and have not reached the carbon limit can sell their carbon credits to other companies that still exceed the carbon limit. In doing so, this carbon trade can ensure that the company as a whole does not exceed baseline carbon emission levels.

 

The purpose of carbon trading is to gradually reduce overall carbon emissions. So that it can reduce the contribution of carbon emissions to world climate change. This has become one of the concrete forms of SOEs carrying out the Indonesian government's commitment in a number of international agreements related to reducing global emissions.