Pertamina unveils guidelines for sustainable financing

This backs the company’s target of 32% emissions reduction.

Indonesia's Pertamina has released its first Sustainable Finance Framework that lays out guidelines for its issuance of financing instruments.

“This strategic move to establish the Framework aligns with its financial endeavours with broader commitment to create long-term value and sustainability for stakeholders while making positive impact,”  said Pertamina Director of Finance Emma Sri Martini.

This move also reaffirms Pertamina’s commitment to realising its target of 32% emission reduction from Business as Usual (BAU) scenario by 2030 and fully supporting Indonesia’s efforts to achieve net zero emissions by 2060, she added.

Under the framework, Pertamina and its units will be able to issue green or transition financing instruments to finance and/or refinance eligible green or transition projects in nine categories: renewable energy, green hydrogen, transmission and distribution networks for renewable and low-carbon gases, green buildings, clean transportation, low-carbon fuels, environmentally sustainable management of living natural resources and land use, emission reduction, and transition in shipping.

The guidelines also include robust governance and reporting processes to ensure transparency and visibility to investors and lenders.

Pertamina said ISS-Corporate validated the consistency of the framework with the company’s sustainability strategy, as well as its alignment with the Green Bond Principles published by the International Capital Market Association and the Green Loan Principles published by the Loan Market Association.