Jakarta, July 18, 2024 – The construction sector, particularly the cement industry, plays a central role in Indonesia’s efforts to achieve Sustainable Development Goals (SDGs) and the target of net-zero carbon emissions by 2060. In 2020, the industrial sector, including cement, contributed approximately 22% of the country’s total greenhouse gas emissions. The Indonesian government has set an ambitious roadmap to reach net-zero emissions by 2060, with a target to reduce emissions by 29% to 41% by 2030 from 2010 levels.
These efforts include increasing the use of renewable energy sources like solar, wind, and biomass, and adopting alternative fuels in the cement industry to reduce dependence on fossil fuels. The construction sector, heavily reliant on cement, is also pivotal in driving sustainable practices by utilizing eco-friendly materials and innovative construction technologies. Collaboration between the government, private sector, and society is crucial to achieving a greener and more sustainable future for Indonesia.
PT Cemindo Gemilang Tbk, producer of Semen Merah Putih, has long prioritized environmental sustainability in its operations, from raw material selection to production and distribution processes. Acknowledging the significant environmental impact of the cement industry, Semen Merah Putih is committed to leading the industry’s transformation toward more sustainable production practices.
Oza Guswara, GM of Sales & Marketing at PT Cemindo Gemilang Tbk, emphasized Semen Merah Putih's dedication to being a global leader in building material innovation. “Semen Merah Putih prioritizes socially and environmentally responsible production practices while enhancing HSSE standards for the long-term benefit of society and the environment. Strategically, we continue to optimize innovation and technology, especially through the use of alternative fuels in our production processes,” said Oza.
Through investments in eco-friendly technology and sustainable practices, Semen Merah Putih’s Bayah plant reduced its net specific CO2 emissions by 5% in 2023 compared to 2022, from 633 kg to 603 kg of CO2 per ton of cement equivalent. This means that each ton of cement produced in 2023 emitted 30 kg less CO2 than the previous year.
Oza further explained that, to demonstrate Semen Merah Putih’s commitment to reducing reliance on fossil fuels and transitioning to more sustainable energy sources, the Bayah plant installed Alternative Fuels Feeding (AF) on the calciner at its kiln, targeting a 5% increase in the Thermal Substitution Rate (TSR) by 2024. This improvement is expected to result in a reduction of CO2 emissions by 70,000 tons, as more energy will be sourced from alternative fuels such as biomass or RDF, replacing conventional fossil fuels like coal or natural gas in cement production. Additionally, the use of the Waste Heat Recovery System (WHRS) has been optimized to convert waste heat into electricity, generating 85,702 MWh in 2023.
Semen Merah Putih Strengthens Commitment to Sustainability with International Recognition
"Semen Merah Putih has demonstrated a strong commitment to reducing its dependence on fossil fuels and transitioning to more sustainable energy sources. This step is expected to cut CO2 emissions while optimizing the use of the Waste Heat Recovery System (WHRS) to generate environmentally-friendly electricity," said Oza. He also added that the company continues to innovate in product development, focusing on reducing clinker usage to enhance operational efficiency and sustainability.
Additionally, investments have been made to replace diesel trucks and forklifts with electric vehicles, further reducing CO2 emissions. These efforts have earned international recognition, with Semen Merah Putih receiving its second "Continuing Progress in Climate Actions" award from the World Cement Association (WCA) at the WCA World Annual Conference in May 2024. This award highlights the company’s significant contributions to reducing costs and carbon emissions through energy efficiency, alternative fuel usage, and clinker factor reduction.
Surindro Kalbu Adi, Commercial & Logistic Director of PT Cemindo Gemilang Tbk, expressed his pride in receiving the award, acknowledging the hard work of the entire team in realizing the company’s sustainability values. "The 2024 WCA Climate Action Award received by the Bayah plant is recognition of Semen Merah Putih’s ongoing efforts in realizing its sustainability vision. It also motivates us to continue innovating and improving our environmental performance in the future," Surindro said.
This award marks a significant step in Semen Merah Putih's journey toward a greener future. The company is committed to investing in eco-friendly technologies, enhancing operational efficiency, and building partnerships to achieve its sustainability goals. "The environmental challenges we face today are complex, but with collaboration, innovation, and strong commitment, Semen Merah Putih is confident in creating a more sustainable future for the cement industry and the environment," Surindro added.
Semen Merah Putih is dedicated to reducing carbon emissions through alternative fuels, energy efficiency improvements, and eco-friendly products. Investments in modern technology will further enhance energy efficiency across the plant’s operations. "Sustainable practices such as responsible waste management, the use of electric vehicles, and reforestation programs will continue to be implemented and improved. We will also actively engage local communities in our sustainability efforts, including through empowerment programs, education, and healthcare initiatives," concluded Surindro.
Recognizing the importance of collaboration in addressing environmental challenges, Semen Merah Putih remains committed to working with the government, non-governmental organizations, and other stakeholders to find joint solutions for sustainability. Through various innovations and investments, the company is committed to making a significant contribution to reducing the cement industry’s carbon footprint in Indonesia, as part of its corporate responsibility to help the country meet global climate targets.
