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PGE Kamojang Area and Ulubelu Area Receive Gold PROPER 2022 for Excellent ESG Implementation

PT Pertamina Geothermal Energy (PGE), part of Pertamina Power & New Renewable Energy (PNRE) Subholding, receive two Gold PROPER awards 2022 for Kamojang and Ulubelu operational areas. The award is a manifestation of PGE's commitment to geothermal development and ensuring the Environment, Social, and Governance (ESG) implementation as an integrated part of its geothermal business.

The award was handed over directly by the Vice President of the Republic of Indonesia, KH Ma'ruf Amin, along with the Indonesian Minister of Environment and Forestry, Siti Nurbaya, at the Vice Presidential Palace on Thursday, December 29, 2022.

Ahmad Yuniarto, President Director of PT Pertamina Geothermal Energy (PGE), expressed his gratitude for receiving the two awards. "This achievement is the result of the hard work, enthusiasm and inspirations of PGE Officers. It also manifests PGE's commitment to contribute in achieving the Sustainable Development Goals (SDG) of Goal 7 (Clean and Affordable Energy), Goal 12 (Responsible Construction and Production), Goal 13 (Climate Change Management), and Goal 15 (Land Ecosystem),” he said.

PGE Kamojang Area in West Java received the Gold PROPER for 12 consecutive years from 2011 to 2022 for its success in creating a sustainable and environmentally friendly surrounding community empowerment ecosystem through KANG ELIE (Kamojang Green Living Ecosystem) CSR program.

As for PGE Ulubelu Area in Tanggamus Regency, Lampung, the first Gold PROPER award is received owing to Layung Respati CSR program which focuses on the coffee farmers resistance in overcoming unfair trade and coffee farmers mindset reconstruction to undertake the misuse of protected forests.

Vice President Ma'ruf Amin in his remarks said that Indonesia has a strong commitment in the environmental sector and focuses on increasing climate change action. However, the government needs the support of various parties, including the business actors, to jointly protect the environment as a form of social responsibility to make it a sustainable legacy for the next generation. He expected that more companies would become agents of change by involving stakeholders to help protect the environment and reduce negative impact on the environment.

Ma'ruf Amin hopes that the PROPER Award will create various programs that involve wider parties for the sake of environmental preservation. "The programs that received PROPER Award can be followed up with other programs that involve all components of the nation, including the business communities, the public, social organizations, central and regional governments, as well as wider stakeholders," he said.

Minister of Environment and Forestry Siti Nurbaya said that this year's PROPER assessment developed on elements of assessment criteria within the green leadership framework. Leadership is an important factor because it includes motivation, commitment and consistency in implementing policies.

"The new variable Green Leadership in the business is also important as an illustration of policies on green economy, industry, green technology, and others that must be actualized to respond to national and global challenges," she explained.

The Corporate Performance Rating Assessment Program in Environmental Management (PROPER) is an performance evaluation in the field of environmental management of those in charge of businesses and/or activities, which is a Public Disclosure Program for Environmental Compliance. This program is complementary and a form of government policy through the Ministry of Environment and Forestry, to improve the companies’ environmental management performance in accordance with what has been stipulated in the laws and regulations. Furthermore, PROPER is also a manifestation of transparency and democratization in environmental management in Indonesia. The implementation of this instrument is an effort by the Ministry of Environment and Forestry to apply some of the principles of good governance (transparency, fairness, accountability and community involvement) in environmental management.

The PROPER assessment criteria consist of two categories, namely compliance assessment criteria and beyond compliance criteria. The Blue PROPER for companies that comply with environmental management regulations, Green PROPER for companies that have gone beyond compliance in environmental management, and Gold PROPER is for companies that have excelled in environmental management and community development.

PGE currently manages 13 Geothermal Working Areas (WKP) with an installed capacity of +1.8GW. A total of 672 MW is operated and managed directly by PGE and 1,205 MW is managed under a Joint Operation Contract scenario. Geothermal installed capacity in PGE's working areas contributes 82% of the total installed geothermal capacity in Indonesia, with the potential to reduce CO2 emissions of around 9.7 million tons of CO2 per year.

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