Month: November 2021

Indonesian energy company PT Pertamina (Persero) has said it is aiming to become a world-class sustainability-driven energy player through the implementation of Environmental, Social, and Governance (ESG) programs.

The company is running several ESG programs that are geared towards sustainability, according to a written statement issued by Pertamina’s CEO and president director, Nicke Widyawati, and received here on Tuesday.

The state-owned enterprise will support the nation’s efforts toward achieving the target of 29-percent decarbonization before 2030, starting by reducing greenhouse gas emissions, she said.

“Our operational efficiency in the refinery and upstream facility, flare gas utilization, waste heat recovery, and increasing utilization of geothermal energy, all contribute greatly towards the reduction of emissions,” she added.

As part of its environmental goals, Pertamina has reduced its energy consumption and intensity, thereby reducing its carbon footprint, Widyawati said adding, the company has cut its emissions by 27 percent in the last ten years.

Pertamina — as the largest Indonesian company that is involved mainly in oil, natural gas, and renewable energy sectors — plays an important role as the guardian of thenation’s energy security, and its wide range of activities affect the lives of millions of people in the country, she observed.

Therefore, the company has also strived to realign its business strategies with a greater focus on sustainability, she said.

Pertamina’s sustainability strategy has been translated into 10 sustainability focuses, each of which is aligned with the sustainable development goals (SDGs) and has a primary target, she informed.

The 10 sustainability focuses are addressing climate change; reducing the environmental footprint; protecting biodiversity, health, and safety; preventing major accidents; recruiting, developing, and retaining employees; carrying out innovation and research; community engagement and impact; practicing cybersecurity; and corporate ethics, she elaborated.

Moreover, in its transition to greater use of clean energy, the company has set its sights on the development of geothermal as well as hydro-based and solar-based power generation, Widyawati disclosed.

“We will continue to support Indonesia’s energy transition by adopting climate-friendly business strategies such as realigning our energy mix to include 17-percent renewable energy by 2030, and providing clean energy for the country in the future,” she affirmed.

In terms of social responsibility, the company is continuing to tighten and improve occupational health and safety policies, she said.

Furthermore, to improve corporate governance, the company has initiated the ‘New Pertamina Clean Charter’, as part of its anti-bribery management system, she added. (

Source: Antara News

Bank Indonesia (BI) is currently studying two approaches for the dissemination of digital rupiah in preparing for the implementation of the Central Bank Digital Currency (CBDC) in Indonesia.

“Bank Indonesia is exploring two methods for digital rupiah distribution either by using the direct way (one-tier) or the indirect (two-tier approach),” BI’s head of Macroprudential Policy Department, Juda Agung, stated during the Fit and Proper Test for the BI Deputy Governor candidate with Commission XI of the House of Representatives here on Tuesday.

Agung explained that the one-tier or direct approach means that all households and corporations can obtain digital rupiah tokens directly from the Central Bank, he affirmed.

The two-tier or indirect approach is conducted through two stages, wherein Bank Indonesia will circulate digital rupiah through banks and the people can then purchase the tokens through banking, according to Agung.

“In our opinion, the second option is more appropriate because it is similar to the circulation of banknotes and coins,” Agung added.

Furthermore, he deemed the issuance of digital rupiah as being important to maintain the sovereignty of a country’s currency on account of an increase in the number of digital transactions.

The digital rupiah is able to manage the effectiveness of the Central Bank’s monetary policy, stabilize the financial system, and encourage financial inclusion, he remarked.

Regarding the global data on digital currency distributions, he cited a survey in which 60 percent of the world’s Central Banks are already considering implementing CBDCs and some 14 percent of them have already piloted their version of digital currencies.

Nevertheless, Agung emphasized that the use of digital rupiah will not fully replace the rupiah banknotes and coins, so the implementation of digital currency will be conducted gradually up to 20 percent of all forms of money being circulated.

“This avoids the risk that digital currency faces, such as power outages. If the currency is all digital, then the risk is also high. Hence, banknotes and coins must still exist, and its portion (of digital rupiah) will be done step-by-step,” he concluded.

Source: Antara News

Drone operators in Indonesia will be required to undergo an extremely strict certification and validation process, the Directorate of Airworthiness and Aircraft Operations (DKPPU) of the Ministry of Transportation has said.

“If (any entity) wants to operate a drone for commercial means, they have to refer to the regulation of ICAO (International Civil Aviation Organization), which highly prioritizes the aspects of safety and security,” Head of the Aircraft Certification Sub Directorate of DKPPU Agustinus Budi Hartono said in a written statement released here on Tuesday.

With the development of transportation technology, drones or unmanned aircraft (PUTA) have become an alternative and attractive mode of air transportation because they are deemed faster, cheaper, efficient, and environment-friendly, he noted.

As drone regulator, the ministry’s Directorate General of Air Transportation is always trying to accommodate the operation of unmanned aircraft, in response to the innovations in air transportation technology, which is currently growing rapidly, he said.

The regulations related to unmanned aircraft are stipulated in the Job Creation Law and Government’s Regulation (PP) No. 32 of 2020, he informed.

Referring to the recent demo flight of an unmanned aircraft, EHang 216, owned by PT Prestisius Aviasi Indonesia, Hartono said the flight was cleared after an eight-month-long assessment conducted on EHang 216, the operator, and the demo location by the Transportation Ministry. The results of the assessment served as a recommendation for the EHang 216 operator, he added.

However, though a demo flight has been performed, EHang 216 has not automatically gained a license to fly commercially, he pointed out. This is because there are still some provisions and conditions that need to be met, he explained.

“Not only do we issue certification to the aircraft, but we also need to consider and validate in terms of air space room, security, pilot license, and the organization who will operate it. Moreover, there are several technical requirements that the EHang 216 factory must follow,” Hartono expounded further.

He said the Aircraft Certification Sub Directorate is very concerned about the safety and airworthiness of unmanned aircraft.

Last week, EHang 216 successfully made a demo flight to Tegal Besar Beach in the Klungkung District of Bali. According to its official website, EHang 216 is an Autonomous Aerial Vehicle (AAV) that can carry two passengers.

It can also perform vertical take-offs and landings (VTOL), where it can ferry passengers in urban areas by utilizing 4G and 5G internet networks that are controlled by on-the-ground pilots.

With a width of 5.6 meters, a height of 1.7 meters, and 16 propellers installed on its eight foldable arms, EHang 216 can lift weights of up to 220 kg and fly at a maximum speed of 130 km/hr, the company said.

Source: Antara News

Finance Minister Sri Mulyani Indrawati has said that her ministry has been expediting efforts to increase the market share and role of the sharia economy in the national economy.

“So far, the Finance Ministry has taken steps to increase the share and role of the Islamic economy in the Indonesian economy,” she informed at a press conference here on Tuesday.

Indrawati said the first step taken by the Finance Ministry was to support the state Islamic securities instruments so that Indonesia became the main issuer of sharia-compliant bonds (Sukuk) in the global market.

Moreover, the development of sharia securities in retail is improving as the number of investors, most of whom are millennials, is also increasing, she noted.

In addition, the Finance Ministry has issued the Finance Ministerial Regulation Number 57 of 2021 for small and medium enterprises developing halal products so that they are not troubled with tariffs in obtaining halal certification, she added.

She also said that budget-wise, the state budget is also supporting the Halal Product Guarantee Agency in guiding MSME players with regards to halal products.

“So, aside from setting the zero-rupiah (tariff) for small and medium businesses, we are also providing state budget support so that the certification can be provided in a consistent and credible manner,” she elaborated.

The ministry has also been providing support to MSMEs through existing tools, such as ultra-micro financing, which currently has a special market share for halal products, Indrawati said.

“So that in this case, we will also include financial inclusion at the smallest level, which is, of course, the (aim of the) micro-credit program, (implemented in collaboration) with Mister Coordinating Minister, Airlangga. We will develop for the sharia share,” the minister remarked.

Source: Antara News

Energy and Mineral Resources Minister Arifin Tasrif has said that his ministry is currently preparing a strategic plan for developing Biodiesel 40 (B40), which contains 40 percent biofuel and 60 percent diesel.

“Several strategies are being carried out to develop biodiesel; for instance, the development of green diesel through the co-processing method in the Dumai Refinery Unit II of state-owned oil and gas company Pertamina in 2022,” he said at a webinar monitored here on Tuesday.

The company will also build two standalone bio-refineries in Cilacap District, Central Java Province, by 2022 and Plaju Sub-district, Palembang City, South Sumatra Province by 2024, he noted.

The two refineries will produce green diesel and green aviation turbine fuel (avtur) using just vegetable oil as raw material, he said.

In addition, the ministry will develop palm-based green gasoline under the People’s Palm Oil Project, which will involve smallholders and cooperatives in Musi Banyuasin District, he added.

“Currently, a pilot project is being prepared and will be demonstrated in Bandung, West Java. We hope that the areas where the projects are implemented will become independent in energy by using palm oil as raw material for fuel,” the minister remarked.

The government has made the use of B30—a green fuel comprising 30 percent of biofuel and 70 percent of diesel—mandatory to stop fuel imports by 2027, he informed.

This will allow Indonesia to save foreign exchange and improve the welfare of farmers through the mandatory use of biofuels, Tasrif said.

Furthermore, Indonesia has successfully used biofuel for 15 years, making the country a pioneer in using biodiesel with a blending rate of 30 percent, he added.

In October 2021, the government successfully conducted the inaugural flight of the CN 235-220 Flying Test Bed (FTB) between Bandung and Jakarta using bioavtur.

“Apparently, the result is quite well, thus we must be able to improve bioavtur—we will see whether it will be able to enter the international market or not,” Tasrif added.

Source: Antara News

Indonesia has not imported any rice in 2021 and the nation’s current rice stocks are also adequate to meet domestic demand, President Joko Widodo (popularly known as Jokowi) has said.

He made the statement after participating in a rice plantation activity with several farmers in Trenggalek District, East Java Province, which was broadcast on the Presidential Secretariat’s YouTube channel on Tuesday.

Local farmers’ productivity increased this year thanks to the completion of a number of dams started in the previous years, which provided irrigation water for agricultural lands across Indonesia, he said.

“Farmers’ better productivity has increased total rice production throughout Indonesia,” he added.

In 2015-2020, the government built 18 dams: Rajui and Payaseunara in Aceh; Logung and Gondang in Central Java; Bajulmati, Nipah, and Tukul in East Java; Raknamo, Rotiklot, and Napun Gete in East Nusa Tenggara; as well as Tanju and Mila in West Nusa Tenggara, he noted.

In addition, it built Sei Gong (Riau Islands), Sindang Heula (Banten), Jatigede (West Java), Titab (Bali), as well as Teritip (East Kalimantan) dams, he said.

Before planting rice, Jokowi inaugurated two dams — Tugu Dam in Trenggalek District and Gongseng Dam in Bojonegoro District, East Java Province.

He expressed the hope that the operation of Tugu Dam would help farmers harvest rice and grow secondary crops more frequently, thereby significantly increasing the productivity of agricultural land in Trenggalek District.

“The overall rice production in East Java province is 5.7 million tons. It is able to fulfill local needs and also supply the demand from other provinces,” he added.

During his visit, the President was accompanied by Agriculture Minister Syahrul Yasin Limpo, Public Works and Public Housing Minister Basuki Hadimuljono, East Java Governor Khofifah Indar Parawansa, and a number of other officials.

Source: Antara News