Merdeka Copper Gold (MDKA) is spearheading significant decarbonization initiatives to support Indonesia’s goal of achieving net zero emissions by 2060. The mining giant is transitioning from traditional energy sources to more sustainable alternatives as part of its commitment to environmental stewardship.
Currently, MDKA is shifting from coal to solar energy to power its operations, particularly at the Wetar copper mine managed by its subsidiary, BKP-BTR. In alignment with Indonesia’s Energy Ministry regulations, MDKA has also implemented the use of B35 biodiesel—a biofuel comprising 35 percent palm oil—to fuel its operational vehicles and heavy machinery.
These efforts are expected to enhance operational efficiency and reduce environmental impact by minimizing coal usage. MDKA aims to improve cost efficiency while creating long-term value through its transition to cleaner energy sources.
In addition to solar power, MDKA is exploring the potential of hydropower and wind energy. Feasibility studies for these renewable energy sources are currently underway, with plans for trial runs to follow. These initiatives reflect MDKA’s alignment with Indonesia’s broader strategy for achieving net zero emissions.
The Indonesian government’s roadmap for net zero emissions emphasizes energy efficiency, renewable energy generation, and the electrification of transportation. Addressing these areas is crucial for reducing emissions by 80 percent from the energy sector, thereby advancing Indonesia’s sustainability goals.
Cahyono Seto, Director of Bumi Suksesindo—MDKA’s subsidiary operating the Tujuh Bukit mine in East Java—highlighted the company’s commitment to renewable energy. “We are committed to incorporating hydropower and wind power generation in our operations. Our goal is to complete this transition within the next five years. Currently, Bumi Suksesindo has achieved 100 percent renewable energy usage,” Seto shared with Investor Daily.
MDKA’s portfolio includes significant projects such as the Pani gold project, the Wetar copper mine, and the nickel mines and smelters operated by its subsidiary, Merdeka Battery Materials (MBMA). The company is set to undergo major transformations in its renewable energy use over the next five years.
In November 2023, Merdeka Group received an A grade for its environmental, social, and governance (ESG) practices from Morgan Stanley Capital International (MSCI). This upgrade from a BBB rating to an A recognizes MDKA as the only Indonesian mining company on MSCI’s A-grade diversified metals and mining list. According to Seto, this high rating is crucial for securing financing and underscores the company’s effective implementation of ESG principles.
MDKA is also dedicated to environmental conservation through its mangrove planting program, which has been active for the past two years. The company has planted 2,000 mangroves at its four sites and plans to expand this initiative to Banyuwangi, Wetar, and Jakarta. Mangroves, known for their ability to absorb carbon at higher rates than other plants, play a significant role in MDKA’s decarbonization strategy.
“The law requires us to engage in mangrove planting, and this initiative reflects MDKA’s ongoing commitment to environmental stewardship,” Seto emphasized.
