JBIC Signs MOU with National Oil Company of Indonesia, Pertamina : Supporting Collaboration between Pertamina and Japanese Companies in Clean Energy Sectors

• Region: Asia
• Energy and Natural Resources
• Environment

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on November 13, a Memorandum of Understanding (MOU) with PT Pertamina (Persero) of Indonesia to strengthen a partnership between the two organizations, taking the opportunity at the 17th G20 Heads of State and Government Summit in Bali, Indonesia.
   
2. Pertamina, an Indonesian state-owned oil company, is committed to supporting the Indonesian government's commitment to achieve net-zero emissions by 2060 or earlier, and creating cleaner energy through decarbonization of business and new business building. The MOU aims to promote collaboration between Pertamina and Japanese companies in such sectors as renewable energy, hydrogen and ammonia value chains, CCS^*1, and green mobility, through strengthened cooperation between JBIC and Pertamina.
   
3. Indonesia, which holds the 2022 G20 Presidency, announced its emissions reduction target of 31.89% (compared to BaU^*2) by 2030 under the Enhanced NDC submitted to the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat in September 2022, and set the goal to achieve net-zero emissions by 2060 at the UN Climate Change Conference (COP26).
   
4. In the Fourth Medium-term Business Plan released in June 2021, JBIC aims to respond to energy transformation toward the realization of a decarbonized society. In addition, in its ESG Policy released in October 2021, in line with international goals to achieve the objectives of the Paris Agreement, JBIC is committed to pursuing ambitious and accelerated efforts to reduce its operational GHG emissions to net zero by 2030, and to achieve net zero emissions of its finance portfolio by 2050. The ESG policy adds that through continued engagement with the relevant national governments and authorities, JBIC will contribute to realizing global carbon neutrality by supporting and accelerating the energy transition toward a decarbonized society in emerging and developing countries. The signing of the MOU is in line with the Medium-term Business Plan and ESG Policy of JBIC.
   
5. As Japan's policy-based financial institution, JBIC will continue to provide financial support to create business opportunities and promote business for Japanese companies in a variety of sectors including decarbonization in Indonesia, by enhancing relations with Indonesia and Pertamina through multiple means such as the signing of MOUs.
   

Note

1. *1
   Carbon dioxide Capture and Storage (CCS) is a technology that separates and captures carbon dioxide that would become a greenhouse gas and stores it in deep waterbeds or geological formations.
2. *2
   Business as Usual : A case in which no specific emission reduction measures are implemented.