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SIG Supports G20 Presidency of Indonesia Through Investment in Decarbonization

PT Semen Indonesia (Persero) Tbk (SIG) supports the Indonesian Government’s commitment for creating sustainable development through decarbonization with ESG (Environmental, Social, and Governance) principles as the company’s participation and respond to climate change, which become the main issue on Indonesian G20 agenda. Last October, on SOE International Conference in Bali, Minister of State Owned Enterprise, Erick Thohir, saidthat our State Owned Enterprises have an important role as economic moverthrough commitment of ESG initiatives.

Two years of pandemic, SIG has proven that resiliency is not just achieved on a business scale, but also from sustainable operational which become the company competitiveness. Corporate Secretary of SIG, Vita Mahreyni, said that investments and innovations is required to achieve sustainability targets. As an SOE company, SIG took part in decarbonization efforts through some sustainability initiatives strategy which is set by the company.

To carry out the ESG initiatives, SIG has obtained shareholders approval through Extraordinary General Meeting of Shareholders (RUPSLB) which held in Jakarta on November 4th 2022 to perform the right issue by 4th Quarter of 2022, stated that 60% of right issue funds will be utilized for supporting ESG program in order to achieve sustainability targets. This corporate action is relevant to the Minister of SOE statement, Erick Thohir, that Ministry of SOE will encourage SOE company to make a Transformation in order to effectively carrying out the roles as a value creator and agents of development for the society.

The main focus of ESG programs are, increasing alternative fuel usage facility to reduce the usage of non-renewable conventional fuel (coals) and alternative raw materials usage facility to reduce mining raw materials usage, and replace it with recycled industrial waste (B3), and also environmental friendly waste management facility.

“SIG sets the scope 1 decarbonization roadmap which targeting the reduction of carbon emissions as 515 kg CO2/ton cement in 2030. To achieve the goal, SIG has commited to increasing the Thermal Substitution Rate (TSR) to 20% and reducing the clinker factor to 61% in 2030”, said Vita Mahreyni.

As of September 2022, SIG has managed to reduce carbon emissions by 2.1% compared to the same period last year, courtesy of reduction of clinker factor by 1% and TSR increase by 1.6%. This runs with State Owned Enterprises commitment in supporting and implementing energy transitions, and implementing energy sustainability principles for the future as well.

Consistency on Encouraging Decarbonization Initiatives

On SOE International Conference agenda which held on October 17th – 18th, SIG signed the Letter of intent concerning a pilot project for carbon trading on SOE Voluntary Carbon Market along with PT Biro Klasifikasi Indonesia (Persero), PT Pertamina (Persero), Perum Perhutani, PT Perusahaan Listrik Negara (Persero), PT Indonesia Asahan Aluminium (Persero), PT Perkebunan Nusantara III (Persero) dan Pupuk Indonesia (Persero). The goal is to support on building the carbon trading pilot project in State Owned Enterprises environment, which also keep concerning about technical, economic, regulation aspects. SIG has also been released Sustainability Framework on last October 14th, which became supporting funds for implementing the company’s sustainability initiatives. This will be the good way of supporting the company’s vision and sustainability strategy to keep the innovation going by creating sustainable products and solutions, which in line with Sustainable Development Goals/SDGs 2030.