Merdeka Copper Gold (MDKA) is pursuing decarbonization measures linked to Indonesia’s net zero emissions by 2060 target. The company said it is moving from conventional energy sources toward alternatives as part of its environmental stewardship efforts.
MDKA is currently switching from coal to solar energy for operational power, with the change noted in relation to the Wetar copper mine. The mine is managed by MDKA’s subsidiary, BKP-BTR. The company also reported that it is using B35 biodiesel, a biofuel made up of 35 percent palm oil, to run operational vehicles and heavy machinery.
Renewable energy transition at Wetar and other operations
MDKA said the shift away from coal is intended to reduce environmental impact by minimizing coal use. It also stated that the transition is expected to support cost efficiency while creating long-term value through cleaner energy deployment.
Beyond solar, MDKA is exploring hydropower and wind energy options. Feasibility studies for these renewable sources are underway, with trial runs planned to follow. The company framed these steps as aligned with Indonesia’s broader net zero approach.
Indonesia’s net zero roadmap and electrification focus
Indonesia’s government roadmap for net zero emissions highlights energy efficiency, renewable electricity generation, and transportation electrification. The roadmap identifies these areas as key for reducing emissions by 80 percent from the energy sector. MDKA’s reported renewable energy work is presented as part of this policy direction.
Cahyono Seto, Director of Bumi Suksesindo—MDKA’s subsidiary operating the Tujuh Bukit mine in East Java—described the company’s renewable energy plans. He said the target is to complete the transition within the next five years and that Bumi Suksesindo has reached 100 percent renewable energy usage. Seto also referenced hydropower and wind power generation as part of operations.
Projects, ESG rating, and mangrove planting program
MDKA’s project portfolio includes the Pani gold project and the Wetar copper mine. It also includes nickel mines and smelters operated by its subsidiary Merdeka Battery Materials (MBMA). The company indicated that major changes in renewable energy use are expected over the next five years.
In November 2023, Merdeka Group received an A grade for environmental, social, and governance (ESG) practices from Morgan Stanley Capital International (MSCI). The rating was described as an upgrade from BBB to A, with MDKA identified as the only Indonesian mining company on MSCI’s A-grade diversified metals and mining list. Seto said the rating supports financing and reflects ESG implementation.
MDKA also reported ongoing environmental conservation work through a mangrove planting program active for two years. The company said it has planted 2,000 mangroves across four sites and plans expansion to Banyuwangi, Wetar, and Jakarta. Seto stated that mangrove planting engagement is required by law.