YCP Releases New White Paper, Addresses Net Zero Emissions Journey in Indonesia

JAKARTA, INDONESIA, July 2024 – YCP Group, an Asia-focused professional firm specializing in management services and principal investments, released a new white paper titled “Indonesia’s Net Zero Emissions Journey: The Impact of Clean Energy Targets on the Oil & Gas Industry” at a Leaders’ Breakfast event in Jakarta, July 2024. The white paper explores the transformation of Indonesia’s oil and gas industry, addressing the challenges posed by growing demand and emissions as it shifts towards renewable energy.

The event brought together industry professionals and leading experts in Indonesia’s oil and gas industry, providing a venue for meaningful discourse about how Indonesia’s clean energy transition and NZE ambitions are expected to affect the industry at large.

YCP Partner & Indonesia Country Manager Septian Waluyan said, “Although there is a growing need for more Net Zero Emissions (NZE) initiatives, our oil and gas players face notable challenges, such as high investment costs and a lack of education regarding this pivotal shift. We encourage all stakeholders to be a part of this pioneering movement in Indonesia and help shape the future of energy.”

Also attending the event was Pilar Dieter, Managing Partner and YCP’s CEO of Management Service Division. She explained that governments around the world have put forth aggressive Net Zero Emission (NZE) targets that have trickled down to robust commitments proclaimed by the private sector and business community.

“However, many well-intended plans by businesses can be met with headwinds ranging from political and societal resistance to economic degradation of their financial performance, leading to delays and diluted revisions to their commitments. The path to achieving the critical NZE targets requires a blend of commitment, collaborative partnership, and technological innovation,” said Pilar.

Over the last decade, Indonesia’s oil and gas sector has been the country’s most significant energy supplier, contributing 33.4% of its total energy supply. Despite this, the sector’s contribution to Indonesia’s gross domestic product (GDP) decreased by 2.6%, while other sectors grew by 4.2%.

The demand for renewable energy has been growing at a 4.5% CAGR over the past decade, especially for wind and solar energy. Experts predict renewable energy will surpass oil and gas as the primary energy source. Despite the growing emphasis on energy transition strategies, the Indonesian oil and gas industry remains a significant contributor to CO2 emissions. Indonesian oil and gas companies produce 658,540 barrels of oil per day (BOPD), resulting in a 13.2% increase in emissions, totaling nearly 330.5 million metric tons.

These staggering numbers highlight the country’s need for more Net Zero Emissions (NZE) initiatives to reduce carbon emissions from upstream, midstream, and downstream activities. The country’s clean energy transition also presents significant growth opportunities for energy stakeholders and other businesses. Both public and private sector players are expected to accelerate their efforts through public-private collaborations to achieve NZE goals.

YCP has released its latest white paper, “Indonesia’s Net Zero Emissions Journey: The Impact of Clean Energy Targets on the Oil & Gas Industry.” The paper delves into the challenges, gaps, and potential solutions in the industry’s transition towards sustainability and provides a detailed roadmap for future market developments.