PT MAHKOTA GROUP READY TO EARN DOLLAR FROM MILL EBT PALM
06 May 2024
PT Mahkota Group, Tbk (MGRO), a company engaged in the palm oil agroindustry began working on the Integrated Sustainable Agro Industry program, a flagship project that will provide a new source of income for the continuation of the company's business.
An innovative industrial model that combines sustainability, energy efficiency, renewable energy and zero carbon emissions. Through a synergized commitment to innovation and environmental stewardship, this industrial model, MGRO represents the future vision of an integrated palm oil industrial facility, where sustainability, productivity and environmental responsibility are seamlessly combined.
The Integrated Sustainable Agro Industry project is in line with the development of business practices among global corporations that are increasingly serious about developing environmentally friendly business models within the framework of the sustainability of corporate business existence (Corporate Sustainability). Sustainability is one of them by implementing the concept of green economy, where the goal is not only to take responsibility for the safety of our earth, but also to generate potential profits for companies through carbon credit certificate programs and a culture of energy consumption efficiency.
President Director of PT Mahkota Group Tbk Usli Sarsi said MGRO has a strong view of Corporate Sustainability which is 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.
“In developing the Integrated Sustainable Agro Industry program, MGRO has the potential to achieve carbon emission reductions of 95,246 MTCO2 per year. We want to play a role in creating a business climate that is environmentally friendly and provides benefits for our shareholders and employees. The Integrated Sustainable Agro Industry project that we are running is very prospective for the sustainability of the company,” said Usli, in Medan, last week.
As an illustration, 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.
MGRO's 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.
There is one MGRO factory that is ready to operate in stages with the concept of using new and renewable energy (EBT) in mid-2024. This factory is projected to have an immediate impact on the development of new revenue streams for the company.
Integrated Sustainable Agro Industry
There are several important projects prepared by MGRO in the implementation of Integrated Sustainable Agro Industry, such as, first, reducing industrial diesel consumption for fuel needs for production activities with potential energy cost savings reaching up to IDR 70 billion per year. Reduction of industrial diesel consumption is done by replacing the primary energy source to biogas renewable energy fuel.
Second, the development of energy sources from the use of EFB (empty fruit bunches) or empty fruit marks (tankos) into shell replacement fuel by generating savings of around IDR 19.6 billion per year. Meanwhile, the shell itself is used as a commodity that is sold to the export and domestic markets, generating additional sources of income for MGRO.
Third, the production of organic fertilizer from palm oil waste for the needs of its own plantation and sold to the market. Mahkota Group has reached the stage of planning to produce organic fertilizer from palm oil waste with a potential income value of IDR 132 billion per year assuming the price of organic fertilizer is around IDR 2,000 per kg. According to a research result, organic fertilizer from processing palm oil waste can help leaf growth and better quality of palm fruit.
Corporate Secretary of Mahkota Group Elvi said business policy within the framework of Corporate Sustainability and the Integrated Sustainable Agro Industry program has become a business commitment for Mahkota Group.
MGRO 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.