Pandu Sjahrir, Indonesian tech’s power broker, on his next act: energy transition

In a Venn diagram mapping Indonesia’s various centers of power, it’s fair to say that no one occupies a space quite like Pandu Sjahrir.

Initially a coal entrepreneur, the nephew of Indonesian politician Luhut Panjaitan (a close confidant of President Joko “Jokowi” Widodo) entered tech investing after bringing his company public. He ultimately took on roles like chairperson for Indonesia at Sea Group, board member at Gojek, and commissioner at the Indonesia Stock Exchange (IDX).

His work has put him in the same room with the likes of Masayoshi Son, Elon Musk, and – as Sjahrir tells Tech in Asia in an interview – John Kerry, the former US secretary of state and ex-presidential candidate.

Pandu Sjahrir / Photo credit: AC Ventures

But Sjahrir left his position at Sea Group last May. While he’s still at GoTo Financial and IDX, he appears poised for the next phase of his career: working on environmental, social, and governance (ESG) initiatives. Indeed, his seemingly offhand mention of Kerry speaks volumes: the American politician now serves as the special presidential envoy for climate.

At the crux of Sjahrir’s ESG ambitions is Electrum, an electric vehicle company where he serves as CEO. Electrum is a joint venture between GoTo Group and TBS Energi, the energy company that Panjaitan founded in 2007 and Sjahrir took public five years later. Initially focused on coal mining, TBS Energi has since shifted toward clean and renewable energy.

It is a timely pivot considering the world’s focus on climate change. Sjahrir emphasizes that Indonesia, with its vast natural wealth, will be at the forefront of global efforts to tackle the issue.

A big game changer?

There are two intertwined parts to Indonesia’s energy transition potential. The first has to do with rainforests: the world’s third- and fourth-largest, the Australasian and the Sundaland rainforests, are mostly located within Indonesia (51% and 73%, respectively), according to Mongabay.

While Indonesia is a major emitter of greenhouse gases, that may be substantially offset by the sheer size of its rainforests (assuming they are well-managed and protected against deforestation – still a major problem in the country).

Surpluses may then arise should Indonesia reach its carbon emission goals or if there are any efforts (such as reforestation) that can increase carbon absorption. These surpluses can then be sold to other parties (countries, corporations, or even individuals) as a carbon credit. Many countries have pledged to attain carbon neutrality over the next 10 to 50 years, but not all have the resources to offset their emissions domestically.

Key to Sjahrir’s ambitions in the carbon credits space is CarbonX, an impact investment firm focused on sustainability whose strategies include creating a carbon marketplace in Indonesia.

Sjahrir is the president commissioner and a co-founder at CarbonX. The firm’s other co-founders include energy investor Ken Sauer (who serves as managing partner), AC Ventures partner Michael Soerijadji, and Michael Sampoerna, who is a scion of the tobacco billionaire family.

Sjahrir (second from right) during a meeting with President Jokowi and Masayoshi Son / Photo credit: Jokowi’s Twitter account

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