Company Initiative on Climate Change PaSTI International Workshop

PT Solusi Bangun Indonesia Tbk

© 2019 Solusi Bangun Indonesia 2

Pabrik Lhoknga,

Aceh.

Pabrik Narogong, Jawa Barat.

Pabrik Tuban, Jawa Timur.

Pabrik Cilacap, Jawa Tengah.

❑ > 2,400 karyawan

❑ Kapasitas produksi 14,5 juta

ton semen per tahun

❑ 4 pabrik semen di Lhoknga,

Narogong, Cilacap, dan

Tuban

❑ > 30 fasilitas produksi beton

jadi

❑ 2 tambang agregat di Maloko, Jawa Barat dan

Jeladri, Jawa Timur

❑ Terminal di Belawan, Lhokseumawe, Lampung,

Dumai, Batam, dan Pontianak

CO2 Emission in the Cement Industry

© 2019 Solusi Bangun Indonesia 3

© 2019 Solusi Bangun Indonesia 4

Abatement cost curve cement sector

© 2019 Solusi Bangun Indonesia 5

Optimize utilization of waste for Fossil Fuel & Raw material Substitution

© 2019 Solusi Bangun Indonesia 6

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Together with Ministry of Industry, Ministry of Environment and Cement Industry Association to set up climate related policy in cement sector

• Together with Indonesia Cement Association, Ministry of Industry & Ministry of Environment set up CO2 reduction road map for cement sector through MOI regulation no 12/2012

• Reduction target in 2020 baseline 2009

– 2 % Voluntary

– 3 % Mandatory

© 2019 Solusi Bangun Indonesia

Calculation of CO2 Reduction Using WBCSD Standard

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• In cement Industry worldwide,

CO2 monitoring and accounting

protocol use WBCSD Standard

which also refer to IPCCC

• Since 2009 to 2018 Holcim

Indonesia has reduced 11.6 % its

specific Net CO2 per ton

cementitious product (from 713 to

630 kg CO2 / ton Cementitious

product)

• In general using 1 ton of

Alternative Fuel will reduce 0.9 – 1

ton of CO2

Basic CO2 Calculation Protocol at WBCSD Standard

9© 2019 Solusi Bangun Indonesia

Utilization of alternative fuel from Suitable Industrial waste to replace fossil fuel - Circular economy

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• Through the AFR (Alternative Fuel & Raw Material) Business Unit, SBI has helped to turn waste into alternative fuel and alternative raw materials for cement kilns

• Throughout 2018, SBI has utilized more than 500,000 tons of waste as alternative fuels and alternative material

• Utilization of waste as an alternative fuel and alternative material in the cement industry has been proven to be safe and already obtain appropriate permits from the government

© 2019 Solusi Bangun Indonesia

• Ground breaking of Pilot Refused Derived Fuel Facility by Provincial, Danish Government, Ministry of Environment, Ministry of Public work etc

• This RDF facility is able to process 120 tons of waste per day and will produce 40 ton alternative fuel. The facility will be in operation in 2020

Refused Derived Fuel from Municipal Waste Pilot Project Collaboration between SBI, MOE, Public Work, Danish Government, Province

11© 2019 Solusi Bangun Indonesia

CO2 Reduction (baseline 2009)

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580

600

620

640

660

680

700

720

2009 2016 2018

713

656

630

0

8,0

11,6

Company CO2 Footprint

Kg CO2 / ton Cementitious % Reduction

© 2019 Solusi Bangun Indonesia

Electricity Consumption & Alternative Fuel Consumption

13© 2019 Solusi Bangun Indonesia

• Ministry of Industry -SIINas Platform (National Industry Information system) https://siinas.kemenperin.go.id/

• Ministry of environment –SIMPEL (Electronic Reporting Information system) http://simpel.menlhk.go.id/2018/login

Current Reporting platform for CO2 to Government

© 2019 Solusi Bangun Indonesia 14

Transparent Communication on other Sustainable Development Initiatives Through Sustainability Report

© 2019 Solusi Bangun Indonesia 15

Detail activity and SD progress

achievement report is available at

Solusi Bangun Indonesia website http://solusibangunindonesia.com/

Our 2019 SD report will be launched in March 2020

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