ENI - Pertamina Partnership Aborted Due to Palm Oil Issues
30 January 2020 12:05 WIB
TEMPO.CO, Jakarta - The future partnership in the development of a green refinery between state-owned energy firm Pertamina and Italy’s ENI has officially been canceled due to issues related to Indonesia’s use of palm oil.
Reports suggest that ENI received a formal warning by the Italian government that barred the energy firm to utilize Indonesian-produced CPO that they consider not environmentally-friendly.
“In its journey, there was rejection regarding our CPO in Europe, ENI went back-and-forth as there was an international certification requirement to be applied. Most of our CPO producers have not met those requirements,” said Pertamina President-director Nicke Widyawati in the meeting with House of Representatives (DPR) Commission VII on Wednesday, January 29.
One of the international certificates needed to be obtained by a business entity that utilizes palm oil for the establishment of a green refinery is the International Sustainability and Carbon Certification (ISCC).
The rejection looming the Pertamina - ENI partnership lies in Milan’s co-processing refinery, which was moved to the Plaju refinery. “It was decided to be moved to Plaju. But ENI got a warning from their government,” said Nicke.
The Pertamina president was openly bewildered by the Italian government’s decision which she deemed as discrimination against Indonesian-made CPO. Especially considering that the entire product of the CPO is used domestically.
However, Pertamina eventually opened a partnership with United States oil firm UOP that already bears certification to process CPO-based green diesel products.