The cooperation between the two parties was marked by the signing of the Green Energy as Services REC Cooperation Agreement (PKS) in Surabaya, on Friday, March 8, 2024. This is a further collaboration between the two parties after a previous one in September 2023, when PLN began supplying electrical power for the PTFI smelter in the Gresik Special Economic Zone (KEK), East Java.

PLN President Director Darmawan Prasodjo said REC is the answer to the needs of the industrial and business sectors in supporting decarbonization measures in the country. This is in line with the Government's efforts to achieve the Net Zero Emissions (NZE) target by 2060 or sooner.

"As the locomotive of the energy transition in the country, PLN fully supports the needs of the business and industrial sectors that are passionate about the success of the energy transition in Indonesia. For this reason, this REC collaboration with Freeport further proves that our commitment is getting stronger in achieving zero emissions by 2060," Darmawan said. 

He added that the Indonesian government has been pursuing industrial downstreaming so as to provide added value to the nation. PLN as the heart of Indonesia's economy also supports increased competitiveness for downstream products by supplying clean energy. This joint effort can increase added value for the country.

General Manager of PLN East Java Distribution Unit, Agus Kuswardoyo said that REC is a form of PLN service to make it easier for customers to get international recognition for the use of New Renewable Energy (EBT) that is transparent, accountable, and globally recognized. Each REC certificate proves that the electricity per megawatt hour (MWh) used by customers comes from EBT or non-fossil plants.

"We positively welcome this cooperation with PT Freeport Indonesia. Furthermore, we are ready to supply 1,009 GWh of REC to PT Freeport Indonesia until 2025," said Agus.

Agus said PLN's REC is a product of cooperation with the Clean Energy Investment Accelerator (CEIA). This REC is equipped with an electronic tracking system from APX TIGRs located in California, United States. Therefore, every certificate issued cannot be bought or sold by others.

“PLN is ready to fully support industrial and business sector stakeholders who want to participate in supporting decarbonization by using PLN RECs," Agus said.

Horst-Dieter Garz, Executive Vice President Corporate Strategy of PT Freeport Indonesia, appreciated the cooperation. He also hopes that this cooperation can be continued in the future.

"We feel very honored to be here and we are very happy to be a long-term customer of PLN," said Horst-Dieter.

In East Java alone, throughout 2023 PLN has sold RECs to 28 customers, totalling 863,724 REC units equivalent to IDR 30.3 billion. Customers can purchase RECs, both for individuals and corporations, through the website https://layanan.pln.co.id/renewable-energy-certificate.