SMGR boosts solar power capacity sixfold to support green energy transition

  • 25 Jun 2025

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Kontan Online - Tingkatkan kapasitas PLTS enam kali lipat, SMGR dorong transisi energi hijau

25 June 2025

By Noverius Laoli

PT Semen Indonesia Tbk (SMGR), also known as SIG, is expanding its use of renewable energy by developing solar power plants (PLTS) across various operational areas, including its Tuban plant in East Java.

In November 2024, a solar panel installation with a capacity of 6.4 Megawatt peak (MWp) across ten rooftops at the Tuban plant began commercial operations.

This facility is managed by PT Solusi Bangun Indonesia Tbk (SBI), a subsidiary of SIG. With this addition, the total PLTS capacity within the SIG Group has increased sixfold—from 0.12 MWp in 2023 to 6.5 MWp.

Megawatt peak refers to the maximum electricity generation capacity when all technical conditions are optimally met.

President Director of Semen Indonesia, Indrieffouny Indra, stated that sustainability is a core principle in SIG’s business operations.

“As a building materials company that relies on natural resources, SIG is strongly committed to implementing sustainable business practices. Our 2030 Sustainability Roadmap serves as a guide for responsible and environmentally friendly operations,” he said in a statement on Tuesday (24 June 2025).

He added that the PLTS at the Tuban plant supports efforts to reduce greenhouse gas (GHG) emissions and improve electricity consumption efficiency. In 2024, solar energy from SIG’s PLTS generated approximately 1,726 MWh, contributing to a reduction of around 1,450 tonnes of CO₂ emissions.

“The use of solar energy is a tangible demonstration of SIG’s commitment to transitioning toward environmentally friendly renewable energy, in support of sustainable development in Indonesia,” Indrieffouny said.

Geographically, Indonesia’s location along the equator offers high solar energy potential, with average irradiation levels of around 4.80 kWh/m²/day.

The SBI Tuban plant is situated in an area with even higher irradiation, approximately 5.4 kWh/m²/day. Based on this potential, SBI has built an on-grid rooftop photovoltaic (PV) system across ten building rooftops.

The PLTS operates in parallel with electricity from PLN to support the plant’s operations, offices, and other facilities.

SBI President Director, Asri Mukhtar, emphasised the vital role of businesses in addressing the impacts of climate change caused by GHG emissions.

“Transitioning from fossil fuels to solar energy is a concrete step by SBI in supporting low-emission development,” he said.

He added that solar energy is a long-term investment for future generations.

“SBI consistently applies responsible operational practices, aligned with decarbonisation targets and contributions to the Sustainable Development Goals (SDGs),” said Asri.

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