Jakarta. State-owned energy firm Pertamina said Tuesday it sought to become a market leader in carbon trading as Indonesia launched its first ever carbon exchange.

The company’s president director Nicke Widyawati said that Pertamina -- as a company that boasts integrated businesses from the upstream to the downstream sector – had played a pivotal role in Indonesia’s carbon trading.

Its upstream sub-holding has begun implementing carbon capture storage (CCS) and carbon capture utilization and storage (CCUS) technologies by injecting carbon dioxide into Pertamina’s EP Jatibarang Field in Indramayu, West Java. 

“These CCS/CCUS technologies also help boost the oil and gas production in Pertamina’s upstream fields,” Nicke said in a press statement. 

According to Nicke, the Pertamina New & Renewable Energy (PNRE) subholding is in charge of becoming a trader within the Pertamina Group. Nicke said PNRE would become a “key player” in carbon trading as it had already possessed a supply that had already been certified by the Environment Ministry.

Pertamina’s commercial and trading subholding, Pertamina Patra Niaga, is also partaking in carbon trading by opening up business opportunities with businesses as potential customers.

“Pertamina Group is committed to developing a carbon trading ecosystem that meets international standards and supports the government’s target to tackle the climate crisis,” Nicke said.

Pertamina vows to support Indonesia’s 2060 net zero emission target by implementing programs that contribute to the achievement of sustainable development goals (SDGs). Pertamina also implements environmental, social, and governance principles across all its operations.

Earlier in the day, President Jokowi launched the Indonesia Carbon Exchange (IDX Carbon). 

According to Jokowi, the bourse holds Rp 3,000 trillion in potential and can create new green economy opportunities. Jokowi said that the bourse should adopt the international standards as a reference, while also harnessing technology for effective and efficient transactions. The carbon exchange should also set targets and a timeline for both the domestic and international markets. It is also key to regulate and facilitate the voluntary carbon market in line with the practices in the international community.

“Make sure that those international standards do not interfere with Indonesia’s nationally determined contribution [NDC climate] targets,” Jokowi said at the IDX Carbon opening ceremony.

Read More: Indonesia's Carbon Exchange Holds Rp 3,000t Potential: Jokowi