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Joint Collaboration between JERA Co., Inc. and PT Pertamina (Persero)2023/12/15

JERA Co., Inc. (“JERA”) and PT Pertamina (Persero) (“Pertamina”) announce the signing of a Memorandum of Understanding (“MoU”) to collaborate on Business Opportunity Discussion and Potential Collaboration. The signing took place under the banner of the ASEAN-JAPAN Economic Co-Creation Forum as a related event of the Asia Zero Emission Community (AZEC) Leaders Meeting. A. Salyadi Saputra, Director of Strategy, Portfolio & New Ventures of Pertamina and Steven Winn, Senior Managing Executive Officer and Chief of Global Strategist of JERA formalized the agreement. 


The Republic of Indonesia (“Indonesia”), with its healthy economic growth and steadily increasing electrification rate, is expected to see continued increases in its demand for electricity. At the same time, because Indonesia is highly reliant on coal-fired thermal power generation, there is concern that its growing demand for electricity will lead to higher emissions of greenhouse gases. Achieving both stable supply of electricity to sustain economic growth and decarbonization is a major challenge.  


The MOU set out information sharing and discussions to enhance the value of the fuel value chain and to create business opportunities for infrastructure investment in LNG and hydrogen/ammonia, which are low-carbon fuels. The collaboration will include LNG and hydrogen/ammonia transportation and LNG receiving terminal Operation & Maintenance (“O&M”), as well as capacity building through benchmarking, training and/or exchange to improve the operational efficiency of LNG handling. In addition, the parties will also consider the development of new businesses related to CCUS (Carbon Capture Utilization and Storage).


Through this collaboration, which plays an important role in the energy transition, JERA and Pertamina contribute to Indonesia in achieving net zero emissions by 2060. 


“We recognize gas and LNG as pivotal transitional energy sources, anticipating significant advancements in major gas projects within Indonesia. Additionally, our collaborative efforts extend to Low Carbon Fuel, through the development of Green Hydrogen/Ammonia projects, aimed at facilitating power producers in their decarbonization efforts through fuel substitution,” stated Salyadi.


Furthermore, he also mentioned that the development of CCUS is a promising collaboration, given Pertamina’s substantial portfolio of at least 8 CCS/CCUS projects in Indonesia.


“We understand that gas and LNG are key to the process of decarbonization in Indonesia. The decarbonization roadmap is not a one-size-fits-all guideline but needs to be custom-tailored for each country. Therefore, we will provide our cutting edge solution to the energy issues in Indonesia and strengthening their value chains for greener fuels. This MOU allows us to leverage our experiences and capabilities to help Indonesia achieve net zero emission,” stated Winn.


JERA and Pertamina will work to solve the short- to medium-term issue of increasing energy demand while also steadily promoting the medium- to long-term issue of energy decarbonization through collaboration on LNG and hydrogen/ammonia value chains in Indonesia.


JERA is one of the largest power companies in the world and covers the entire value chain of fuel and thermal power generation business as well as renewable business. JERA has been working to support energy transition in Indonesia by conducting research and providing support for the formulation of a decarbonization roadmap for the country's power sector (press release on November 25, 2021).


Pertamina is Indonesia's largest state-owned oil and natural gas company, with a broad range of business in the oil and natural gas sector, from upstream to downstream in the fuel value chain.