Indonesian state-owned oil and gas company Pertamina says it needs to invest $12 billion to meet its target of generating 10GW of electricity from new and renewable energy sources by 2026.

“Pertamina supports the government’s plan to reduce greenhouse gas emissions and achieve net-zero by 2060,” Dannif Danusaputro, the CEO of Pertamina’s new and renewable energy subholding company, was quoted as saying in a press release on July 1.

Pertamina conducts its renewable energy business through a subholding comprised of three entities – PT Pertamina Geothermal Energy (PGE), PT Jawa Satu Power (JSP) and PT Jawa Satu Regas (JSR).

The energy transition overseen by Pertamina is a key element in the government’s plan to reduce national greenhouse gas emissions by 29 per cent by 2030.

July 1’s statement adds that the company is set to lead Indonesia’s energy transition through clean energy innovation.

Indonesia accounts for around 40 per cent of the total energy used in ASEAN and is one of the countries with the fastest growth in energy consumption, according to the International Renewable Energy Agency (Irena).

In a report published earlier this year, Ernst and Young identified 97 investment projects worth $12 billion in Indonesia’s “green recovery”.

Within that field, renewable energy is “one of the most prominent sectors”, according to the global accounting firm.

Pertamina’s 10GW target is comprised of gas-to-power, renewable energy – including geothermal – and other new initiatives, such as an electric vehicle (EV) ecosystem and hydrogen pilot projects.

The gas-to-power business segment is projected to contribute 6GW to the 10GW target. Existing gas-to-power projects in Indonesia include the 1.8GW gas and geothermal power plant Java 1 in West Java.

The renewable energy business is expected to contribute 3GW. From this business segment, a significant contribution comes from geothermal power managed by PGE with a targeted generation capacity of 1.1GW by 2026.

Meanwhile, solar power, biogas-fuelled power plants, smart grids and other new and renewable energy power plants are projected to contribute 1.9GW.

Other initiatives, including the EV ecosystem, as well as green and blue hydrogen, are expected to produce 1GW by 2026.