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Palm Oil Affiliation Cancels Indonesia’s Pertamina – ENI Partnership

EKO WAHYUDI TEMPO.CO Thu, January 30, 2020

Jakarta, Indonesia – 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.

https://en.tempo.co/read/1301424/palm-oil-affiliation-cancels-pertamina-eni-partnership

From: TEMPO.CO (INDONESIA) Thu, January 30, 2020

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