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Indonesian gold mining firm achieves 100% green energy use for four consecutive years

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(Photo: Masmindo Dwi Area)

Indonesian gold mining company Masmindo Dwi Area (MDA) has achieved the goal of using 100% green energy for four consecutive years. This accomplishment is mainly based on Renewable Energy Certificates (REC) issued by the state-owned electricity company PLN, equating to a total usage of 600,000 kWh of green electricity.

According to MDA's website, MDA is a subsidiary of Indonesian energy giant PT Indika Energy Tbk. Its gold mine is located in Luwu Regency, South Sulawesi Province, covering an area of approximately 14,390 hectares. The mine is currently under construction and is expected to start operations in 2025. MDA began using green electricity during its preparation phase and is confident in maintaining this usage during mining operations. Project General Manager Fakhruddin Noor stated that in response to the government's carbon reduction plan, the company will continue using clean energy throughout its operational period.

The Indonesian government plans to achieve net zero by 2060 and started issuing Renewable Energy Certificates through PLN in 2020. This initiative aims to provide businesses with a transparent and internationally recognized way to obtain green energy certificates, accelerating the energy transition. Currently, three geothermal power plants and one hydroelectric power plant primarily supply green electricity.

As of the latest 2023 records, PLN's usage of renewable energy certificates reached 3.08 TWh, a significant increase of 75% from the previous year. A total of 296 companies have used these certificates, with the main users being businesses and manufacturers in East Java, West Java, Banten Province, and Jakarta.

In addition to local businesses, large multinational corporations have joined the procurement of green energy certificates. Notable users include French food giant Danone, American sportswear giant Nike, and Japanese apparel brand UNIQLO. Notably, UNIQLO became the first apparel retailer in Indonesia to obtain a renewable energy certificate.

Rathy Shinta Utami, manager of PLN UP3 Palopo, stated that purchasing green energy certificates is the easiest way to use renewable energy. Companies can become official users of clean energy without spending large amounts of money and time building their power plants, simply by buying certificates.

Source: Jakarta GlobeAsia TodayICDX

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