ENI - Pertamina Partnership Aborted Due to Palm Oil Issues

30 January 2020 12:05 WIB

Pertamina president commissioner Basuki Tjahaja Purnama alias Ahok (right) and Pertamina president director Nicke Widyawati talk to journalists after meeting with President Joko Widodo or Jokowi at the Merdeka Palace in Jakarta, December 9, 2019. TEMPO/Friski Riana

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. 

EKO WAHYUDI



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