PT Mahkota Group (MGRO), a company engaged in the palm oil agroindustry, is embarking on the Integrated Sustainable Agro Industry program, a flagship project that will provide a new source of income for the company’s business continuity. This innovative industrial model combines sustainability, energy efficiency, renewable energy, and zero carbon emissions.
The Integrated Sustainable Agro Industry project aligns with the evolving business practices among global corporations increasingly serious about developing environmentally friendly business models within the framework of corporate sustainability.
MGRO’s commitment to Corporate Sustainability, driven by the United Nations Global Compact and the Indonesian government, emphasizes the necessity for businesses to adopt green economy principles.
Usli Sarsi, CEO of PT Mahkota Group, said that through the development of the Integrated Sustainable Agro Industry program, MGRO has the potential to reduce carbon emissions by 95,246 MTCO2 per year.
“We aim to create a business climate that is environmentally friendly and beneficial for both our shareholders and employees,” Usli said.
The carbon credit trading price in the European Union has even exceeded US$80 per ton, indicating significant potential revenue.
MGRO is gradually launching a factory with a new and renewable energy (EBT) concept by mid-2024. This factory is projected to directly impact the development of new revenue streams for the company.
The Integrated Sustainable Agro Industry project encompasses several significant initiatives, including the reduction of industrial diesel consumption, development of energy sources from empty fruit bunches (EFB), and production of organic fertilizers from palm oil waste.
These initiatives aim to not only enhance sustainability but also generate additional revenue streams for MGRO. By switching to renewable energy sources like biogas and utilizing by-products such as palm shells for fuel, MGRO anticipates significant cost savings. Moreover, the production of organic fertilizers presents a lucrative opportunity, contributing to both internal agricultural needs and external market demand.
Elvi, Corporate Secretary of Mahkota Group, said that company has implemented sustainable palm oil processing principles, high work standards, and established partnerships with local communities. This commitment is underscored by Mahkota Group’s attainment of various certifications, highlighting its adherence to international standards and best practices.
