Jakarta, INTI - Energy transition strategist Fabby Tumiwa believes that the presence of dedicated renewable energy units has become a major differentiating factor between Pertamina and other global oil and gas corporations.
He noted that only a limited number of integrated oil and gas companies worldwide have established specialized clean energy divisions similar to those currently operated by Pertamina.
Fabby, who also serves as Chief Executive Officer of the Institute for Essential Services Reform, explained that the company’s renewable energy portfolio has played a significant role in improving Pertamina’s ESG risk score.
“Pertamina has renewable energy business units such as Pertamina New & Renewable Energy (PNRE) and Pertamina Geothermal Energy (PGE). This provides added value compared to global oil and gas companies that may not yet have similar portfolios,” he told Katadata on Wednesday, January 21, 2026.
His remarks came as Pertamina once again secured the world's top ranking in the ESG Risk Rating for the integrated oil and gas sub-industry, issued by global rating agency Sustainalytics. As of December 31, 2025, Pertamina’s ESG risk score improved from 26.9 to 23.1.
Fabby praised the achievement, stating that it reflects stronger ESG risk management across the company. He emphasized that Sustainalytics’ assessment focuses on risk exposure rather than direct environmental impact.
“The better a company manages environmental, social, and governance risks, the lower its score will be,” Fabby said.
Within the Sustainalytics ESG Risk Rating framework, the score measures the level of unmanaged environmental, social, and governance risks that could potentially affect a company’s long-term economic value.
The assessment evaluates two primary dimensions: ESG risk exposure inherent in the company’s business model and industry, as well as the company’s ability to manage and mitigate those risks through governance and operational practices.
Results are presented across five categories, negligible risk, low risk, medium risk, high risk, and severe risk, with lower scores indicating fewer unmanaged ESG risks.
With a score of 23.1, Pertamina currently falls within the medium-risk category, while most companies within the same sub-industry remain classified as high risk or severe risk.
ESG Implementation Challenges in the Oil and Gas Sector
Because the assessment is global and sector-based, energy transition expert Fabby Tumiwa explained that Pertamina is evaluated directly against oil and gas companies worldwide within the same industry category. From this perspective, Pertamina’s ESG risk management is considered stronger than that of many global peers.
However, Fabby cautioned that the ESG Risk Rating should not be viewed as the sole indicator of sustainability performance. He noted that ESG scores do not fully reflect the actual environmental impact of oil and gas operations, which remain highly emission-intensive.
Looking ahead, Fabby outlined several key challenges that must be addressed to ensure Pertamina’s ESG performance remains consistent and aligned with Indonesia’s national energy transition agenda.
First, the company needs to continue reducing ESG risks by strengthening governance structures and improving risk mitigation strategies.
Second, greater attention must be given to managing the environmental impact of Pertamina’s core oil and gas operations. While renewable energy initiatives are growing, their contribution to total revenue remains relatively small, with fossil fuel activities still dominating the company’s portfolio and generating significant environmental effects.
Third, in transforming into a low-carbon energy company, Pertamina is expected to accelerate the expansion of its non-oil and gas businesses. Fabby emphasized that increasing the share of renewable energy in overall revenue should become a medium-term priority to align with long-term energy transition goals.
In terms of attracting international investment and partnerships, Fabby highlighted technology access as a critical factor. He pointed to Indonesia’s vast geothermal potential, including opportunities to develop enhanced geothermal systems (EGS), which remain largely untapped.
“Therefore, mastering advanced geothermal technologies can become a strategic opportunity for Pertamina to strengthen its position in the clean energy sector while also creating a competitive advantage at the global level,” Fabby said.
Conclusion
The progress achieved by Pertamina in global ESG risk rankings highlights the company’s growing commitment to sustainability and clean energy transformation. Supported by a strong renewable energy portfolio and improving governance practices, the company is strengthening its position among global energy players. However, maintaining this momentum will require accelerating the shift toward low-carbon businesses, expanding renewable revenue contributions, and continuing to mitigate environmental risks from core oil and gas operations. By advancing clean technologies such as geothermal innovation, Pertamina has the opportunity to lead Indonesia’s energy transition while enhancing long-term corporate value.
Read more: Precision Agriculture Technology for Wetland Farming Emerges as a Strategic Breakthrough for Food Self-Sufficiency