TOWARDS A GREEN ECONOMY, MAHKOTA GROUP STARTS IMPLEMENTING RENEWABLE ENERGY-BASED FACTORIES AND ZERO WASTE PRACTICES
02 May 2024
Global corporations are increasingly serious about developing environmentally friendly business models within the framework of corporate sustainability. Sustainability is one of them by running the concept of green economy, where the goal is not only to take responsibility for the safety of our earth, but also to generate profits for companies through carbon credit certificate programs.
PT Mahkota Group Tbk (MGRO), a company engaged in the palm oil agro-industry has the same view of Corporate Sustainability encouraged by the United Nations Global Compact and the government of the Republic of Indonesia that the company's business culture and business practices must apply the principles of green economy.
The company has started to pioneer the development of a green economy through the construction of renewable energy-based factories. MGRO has the potential to reduce emissions by 95,246 MTCO2 per year. Not only that, this agro-industrial company also has the potential to reduce the cost of industrial diesel for fuel needs for production activities up to IDR 70 billion per year with a strategy to switch to using biogas renewable energy fuel. In fact, MGRO has the opportunity to use EFB (empty fruit bunches) or empty fruit bunches (tankos) as fuel to replace shells by generating savings of around IDR 19.6 billion per year and some will be produced into organic fertilizer products with a potential revenue of IDR 132 billion per year.
“We are planning to use biogas energy and utilize tankos as an energy source that we process to fuel our mill. This policy has the potential to generate savings in fuel costs while generating new income. Like using tankos instead of shell consumption. We can save up to Rp19 billion per year and earn new income from the sale of shells that we no longer consume. In addition, some of the tankos will also be produced into organic fertilizer which can generate income,” said Usli Sarsi, President Director of PT Mahkota Group Tbk, this week.
He further explained MGRO's commitment to driving the development of the Integrated Sustainable Agro Industry program, an innovative industry model that combines sustainability, energy efficiency, renewable energy and zero carbon emissions. Through a commitment to innovation and synergized environmental management, this industry model represents the future vision of integrated palm oil industry facilities, where sustainability, productivity and environmental responsibility are well combined.
Seeking Dollar Revenue Opportunities from Carbon Credits
MGRO various business policies to switch to using New and Renewable Energy (EBT) fuels have the opportunity to bring this company to pocket carbon credit certificates. The potential to obtain emission reductions of up to 95,246 MTCO2 from EBT policies is a potential green economy business that is of great concern to MGRO management.
In comparison, the Ministry of Energy and Mineral Resources (ESDM) said the price of carbon credit trading in trials for power plants ranged from US$2 to US$18 per ton. In fact, the price of carbon credit trading in the European Union has reached more than US$80 per ton.
Corporate Secretary of PT Mahkota Group Tbk, Elvi said there is one factory currently that has been prepared as a pioneer to become a factory that operates with the support of EBT fuel. This factory is expected to be able to operate gradually in the middle of this year, so that it can have a direct impact on fuel cost efficiency while supporting green economy-based agroindustry which is a commitment for corporations in the world and Indonesia.
“We are already in the implementation stage of new and renewable energy. Hopefully this year we will be able to operate in one of our factories. And we will expand this project to our business units,” Elvi explained.
Until now, PT Mahkota Group Tbk has approximately 1000 employees. Currently the operational areas of the subsidiaries of PT Mahkota Group Tbk include 2 palm oil mills in North Sumatra, 4 palm oil mills, 1 Refinery unit, 1 Kernel Crushsing Plant unit in Riau province and 1 palm oil mill in South Sumatra province and Bulking Station in Dumai.
According to Elvi, the company has implemented the principles of sustainable palm oil processing, high work standards and also built partnerships with surrounding communities. The success of PT Mahkota Group Tbk is proven by obtaining ISO 9001: 2015, 14001: 2015, 22000: 2018, 45001: 2018, 37001: 2016, Halal, SNI, SMK3, ISCC and ISPO certifications at subsidiaries.
Business policies within the framework of Corporate Sustainability and the Integrated Sustainable Agro Industry program become the business roadmap for Mahkota Group.