SIG Collaborates with State-Owned Enterprises to Accelerate Achievement of Carbon Emission Reduction Target

PT Semen Indonesia (Persero) Tbk (SIG) continues to collaborate to accelerate the achievement of carbon emission reduction targets. After releasing the Sustainability Framework last week, SIG continues to promote sustainable initiatives that have been set by the Company to encourage decarbonization efforts as a form of support for the Ministry of SOEs in realizing the commitment of the Government of Indonesia to achieve the target of net zero carbon emissions by 2060.

In a series of SOE International Conference events organized by the Ministry of SOEs, SIG together with seven SOEs namely PT Bureau of Classification Indonesia (Persero), PT Pertamina (Persero), Perum Perhutani, PT Perusahaan Listrik Negara (Persero), PT Indonesia Asahan Alumunium (Persero), PT Perkabunan Nusantara III (Persero) and Pupuk Indonesia (Persero) signed a Letter of Intent regarding the Voluntary Carbon Market Pilot Project of the Ministry of State-Owned Enterprises (VCM BUMN), which was witnessed by Deputy Minister of BUMN I, Pahala Nugraha Mansury, in Bali Nusa Two Convention Centers, on Tuesday (18/10).

The signing of the BUMN VCM Letter of Intent is intended to support the establishment of capabilities and carbon trading pilot projects within the BUMN environment by taking into account technical, economic, regulatory and other applicable provisions.

The President Director of SIG, Donny Arsal said, through the synergy between SOEs, SIG believes it can accelerate sustainability efforts to achieve sustainable growth. GIS has undertaken a number of initiatives in its decarbonization efforts. These include reducing the clinker factor, technological innovation, the use of alternative fuels through Refused Derived Fuel (RDF) and the use of solar panels, as well as the use of alternative raw materials that are more environmentally friendly.

“During the first semester of 2022, SIG succeeded in reducing carbon emissions by up to 592 kg CO2/ton cement or a decrease of 2.5% (equivalent to 15 kg CO2/ton cement) which was contributed by a 0.8% decrease in the clinker factor to 69.4% and an increase in the clinker factor. The Thermal Substitution Rate (TSR) is 1.7% to 6.8%," said Donny Arsal.

In addition to the signing of the SOE VCM Letter of Intent, SIG also signed a Memorandum of Understanding (MoU) with PT Bukit Asam Tbk (PTBA) for the construction of a Solar Power Plant (PLTS) at SIG's operational location. PTBA through its subsidiary, PT Bukit Energi Investama (BEI) will build a solar power plant in Semen Padang to support the operations of the PT Semen Padang factory.

The PLTS development includes Rooftop PLTS and Ground Mounted PLTS which are targeted to operate commercially (Commercial Operation Date/COD) in 2023-2024. Electricity from the PLTS will be used for production operations, lighting, and offices which are expected to contribute to reducing carbon emissions and making energy costs more efficient.

“This collaboration with PTBA in the construction of PLTS at the PT Semen Padang factory is in line with GIS Sustainability Initiatives to support efforts to reduce carbon emissions. This effort is not only driven by profit alone. But more than that, the desire to become a building material industry that empowers stakeholders in creating sustainable living in the future, "said Donny Arsal.