InfoSAWIT, JAKARTA – PT Pertamina (Persero) is pursuing a dual-growth strategy that keeps oil and gas at the core of Indonesia’s current energy security while accelerating investment in renewable energy and low-carbon technologies.
The strategy comes as global geopolitical uncertainty continues to pose risks to energy supply chains and commodity prices. For Pertamina, energy security is no longer simply about maintaining supplies today, but also about developing new sources of energy for the future.
Cited by InfoSAWIT from an official company statement on Friday (11/9/2026), the strategy consists of two main tracks. The first focuses on strengthening the company’s existing or legacy business, particularly oil and gas. The second is aimed at building a low-carbon business through renewable energy and supporting technologies.
Vice President Corporate Communication of PT Pertamina (Persero), Muhammad Baron, said the energy transition should not be viewed solely through the lens of emissions reduction.
“For Pertamina, the energy transition is not only about reducing emissions, but also ensuring that Indonesia has increasingly diverse, sustainable energy sources derived from domestic potential,” Baron said.
Oil and Gas Remain Important to Energy Security
Under the first track, Pertamina continues to position oil and gas as an important foundation of national energy security.
Strengthening domestic oil and gas production remains part of the effort to maintain energy supplies from within the country. In the downstream sector, refinery assets are also being optimized to preserve processing capacity and energy availability amid changing demand and market conditions.
However, maintaining the oil and gas business does not mean abandoning the transition toward lower-carbon energy.
Instead, Pertamina is developing new energy sources alongside its existing businesses. The approach positions conventional energy and low-carbon businesses as complementary pillars.
Existing businesses support current energy needs, while renewable and low-carbon businesses are being developed as future sources of growth and energy.
Geothermal Becomes a Key Renewable Energy Asset
Pertamina is developing several renewable energy sources, including geothermal, solar power and biofuels. The company is also advancing low-carbon technologies such as carbon capture, utilization and storage (CCUS) and low-carbon hydrogen.
One of Pertamina’s key strengths is geothermal energy.
Through Pertamina Geothermal Energy (PGE), the company manages a total installed geothermal capacity of 1,932 megawatts (MW).
The capacity consists of 727 MW managed directly by the company and another 1,205 MW operated through Joint Operation Contract schemes. The combined capacity represents around 70 percent of Indonesia’s installed geothermal capacity.
The development is part of Pertamina’s broader effort to diversify Indonesia’s energy mix by utilizing domestic resources.
Economist Calls for a Gradual Energy Transition
Pertamina’s dual-growth strategy has received support from economist and Executive Director of the Center of Reform on Economics (CORE) Indonesia, Mohammad Faisal.
According to Faisal, oil and gas remain important for meeting domestic energy demand. However, because fossil fuels are non-renewable and their reserves are finite, Pertamina needs to establish new sources of growth.
Renewable energy development, he said, will be crucial to maintaining business sustainability while strengthening Indonesia’s energy resilience.
“Indonesia must seek other sources beyond oil and gas to strengthen energy security and meet growing domestic demand in line with efforts to achieve higher economic growth,” Faisal said.
Nevertheless, Faisal emphasized that the shift from fossil fuels to renewable energy needs to take place gradually. Oil and gas can continue to serve as a foundation while Pertamina builds the ecosystem required for new energy.
He described the approach as a safe transition, in which the company maintains its existing oil and gas business while steadily expanding renewable energy.
Indonesia’s Renewable Energy Mix Still Below Target
The challenge is also reflected in Indonesia’s renewable energy mix. The Ministry of Energy and Mineral Resources recorded the country’s renewable energy share at 17.3 percent in the first half of 2026.
The figure remains below the government’s target of 30 percent by 2034.
Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said renewable energy development is among the government’s priorities for achieving energy self-sufficiency.
Global geopolitical uncertainty, he noted, can disrupt energy supply chains and affect energy prices, inflation, production costs, as well as government subsidies and compensation.
Against this backdrop, Pertamina’s dual-growth strategy is not only a corporate decision but also part of the broader effort to strengthen national energy security while diversifying future energy sources.
Pertamina expects the strategy to maintain Indonesia’s current energy needs while laying the foundation for future energy development toward the country’s Net Zero Emission 2060 target.
The company has also reaffirmed its commitment to supporting the Net Zero Emission 2060 agenda and Sustainable Development Goals (SDGs), while integrating Environmental, Social and Governance (ESG) principles across its businesses and operations. (T2)
