PT Pertamina Patra Niaga and mining company PT Vale Indonesia have formed a partnership to provide hydrotreated vegetable oil (HVO) as an eco-friendly fuel alternative.

The partnership aims to support Indonesia's goal of achieving net-zero emissions by 2060 through decarbonization efforts, according to Riva Siahaan, CEO of Pertamina Patra Niaga, a subsidiary of state-owned energy company Pertamina.

"This collaboration demonstrates a shared commitment to reducing carbon emissions through the use of clean energy with HVO," Siahaan said in a statement on Monday.

HVO, an environmentally friendly fuel, has the potential to reduce carbon emissions by up to 85 percent and greenhouse gas emissions by up to 90 percent.

Pertamina Patra Niaga offers integrated energy solutions, including Pertamina One Solution, to meet the needs of various business partners, such as Vale Indonesia.

These solutions include cleaner fuels, efficient logistics, and infrastructure support to ensure that businesses operate optimally and sustainably.

As part of the partnership, both companies will jointly implement a community empowerment program to strengthen their environmental, social, and governance practices.

The program aims to help create a positive and sustainable impact on the local community and promote social and environmental responsibility in collaboration with the Pertamina Foundation.

Vale Indonesia CEO Febriany Eddy stated that this strategic partnership aligns with her company's decarbonization roadmap.

She emphasized the importance of this collaboration in helping her company achieve and improve sustainability standards and reduce carbon emissions across its operations.

She noted that products and services from Pertamina Patra Niaga would be invaluable in Vale Indonesia's decarbonization efforts.