减少碳排放，Gunung Raja Paksi (GGRP) 与 DEG Impulse 和 PT TÜV 南德意志集团合作
KONTAN.CO.ID - JAKARTA. Private steel producer PT Gunung Raja Paksi Tbk (GGRP) has partnered with DEG Impulse and PT TÜV SÜD to support carbon emission reduction efforts. Through this initiative, GGRP will enhance energy efficiency at its factory, aiming to become one of the most energy-efficient steel plants in Asia.
This effort also supports GGRP's ambitious target of achieving net zero emissions by 2050.
According to data from the Indonesia Iron and Steel Industry Association (IISIA), steel consumption in Indonesia is projected to grow by 5.1% in 2025, reaching 19.2 million tons.
Through its collaboration with TÜV SÜD, GGRP seeks ways to reduce carbon emissions from energy use, strengthening its position as a leading low-carbon steel producer. This will also support Indonesia's efforts to achieve its 2030 climate targets and meet the steel demand for the transition to cleaner energy.
Led by international energy audit experts from TÜV SÜD, the partnership has completed a comprehensive energy audit at GGRP’s steel production facility in Cikarang, West Java, revealing concrete steps to improve energy efficiency at the plant.
Together, both parties analyzed current energy usage and identified alternatives to reduce energy costs, such as exploring waste heat power generation technology and pre-heating scrap before processing.
The steps from this audit will support GGRP’s commitment to improving energy efficiency at its plant facilities and operations. The goal is to reduce all operational carbon emissions at the GGRP plant by 2030.
With this move, Gunung Raja Paksi is on the right track to meet its target of achieving net zero emissions by 2050, or potentially sooner than the government's target of net zero emissions by 2060.
Improved energy efficiency at GGRP will also provide more competitive pricing for consumers, expanding access to high-quality low-carbon steel and decarbonizing the value chain.
Gunung Raja Paksi Executive Committee Chairman Kimin Tanoto stated that the steel industry is undergoing a significant transformation, and players who do not adopt green transition practices will not survive.
However, large-scale transformation cannot happen quickly. That’s why GGRP is taking achievable steps to reach its net zero emission goal by 2050.
“Our vision for the future of Gunung Raja Paksi lies in low-carbon steel, and our energy efficiency transformation is one of the key representations of our strong commitment to a more sustainable future,” he explained in a press release received by Kontan on Wednesday (January 8).
Previously, GGRP successfully secured its first World Bank investment in the Asian steel industry in over a decade, through the signing of a financing agreement worth up to US$60 million with the International Finance Corporation (IFC).
This financing will enable GGRP to add four decarbonization experts to its team, who will provide advice and assist in implementing the results of the GGRP energy efficiency audit, thus supporting the goals of the Gunung Raja Paksi Net Zero Roadmap that has been launched.
Meanwhile, DEG Impulse, a subsidiary of DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, will provide financial contributions to complete this audit through the Business Support Services (BSS) facility, jointly funded by the Federal Ministry for Economic Cooperation and Development of Germany (BMZ).
The project is promoted with BMZ funding to support the transition to a low-carbon future.
DEG Impulse Senior Manager Sonja Hoos stated that they are proud GGRP has successfully identified opportunities to improve energy efficiency and reduce carbon emissions.
“This not only makes Gunung Raja Paksi more competitive but also helps Indonesia achieve its climate targets,” she said.
Gunung Raja Paksi Chief Transformation Officer Kelvin Fu added that GGRP is working to understand how energy is used in the plant’s operations as part of its decarbonization journey. GGRP is pleased to collaborate with experts at TÜV SÜD, who are helping the company ensure that its facilities use energy as efficiently as possible.
“Our efforts to reduce energy waste also complement other programs, such as sourcing green energy, using blue and green hydrogen, and strengthening our internal capabilities in transitioning to renewable energy,” he concluded.
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