A collaboration between PT PLN (Persero), Indonesia’s state electricity company, and North Sumatra’s largest mining company, PT Agincourt Resources (PTAR), a Member of Astra, is proof of this change. The two are working together to realize green mining in Batangtoru, South Tapanuli.

In August 2024, PLN signed an agreement to supply Renewable Energy Certificates (RECs) to PTAR totaling 275,000 units, equivalent to 275 megawatt-hours (MWh) of electricity from new and renewable energy (NRE). PTAR is now the only gold mine in North Sumatra that holds RECs.

PLN President Director Darmawan Prasodjo said this cooperation is evidence of PLN’s collaboration with industry players to support the clean energy transition in Indonesia. As the country’s main electricity provider, PLN is responsible for advancing the shift to clean energy.

This is being done through the provision of Renewable Energy Certificates (RECs) to industries using PLN’s NRE-based electricity. REC sales not only demonstrate PLN’s commitment to green energy but also strengthen its position as a key partner in building a green industry in Indonesia.

“PLN is fully committed to supporting the competitiveness of national industry by encouraging the use of environmentally friendly clean energy. We offer a 100 percent green electricity service supplied by our NRE-based plants through RECs,” Darmawan said recently.

RECs are a PLN service that allows customers to obtain transparent, accountable, and internationally recognized acknowledgment of NRE use. Each REC certifies that the electricity a customer consumes originates from an NRE power plant.

This is a breakthrough for export-oriented, labor-intensive industries. As the largest customer outside Java, PTAR’s role as a pioneer of this program in North Sumatra is worthy of emulation by other companies.

Since 2019, Darmawan noted, PLN has initiated the development of green power products through cooperation with the Clean Energy Investment Accelerator (CEIA), an initiative by WRI Indonesia. This collaboration has produced two green power products: RECs, which have been utilized by 7,354 PLN customers (as of August 2025), and Green Energy as a Service (GEAS), a new service providing direct, continuous green power for industry.

He highly appreciates companies that initiate REC use to support the energy transition. REC customers, he said, are patriots who create jobs, drive investment, and uphold environmental sustainability.

PTAR Superintendent of Corporate Planning and Management, Mohammad Kemal, explained that the purpose of using RECs is tied to clean energy use and carbon emission reduction. PTAR chose RECs because its largest carbon emissions are in scope 2, with 100 percent of its electricity sourced from PLN—making RECs an ideal fit.

“Another factor is that using RECs doesn’t hinder other operational activities or business growth,” he said.

He added that the 275,000 RECs cover the period from September 2024 to August 2026. The broader target is a 30 percent reduction in carbon emissions by 2030. The emission reduction targets for 2025 and 2026 are around 15 percent compared to 2019.

PT Agincourt Resources Senior Manager Commercial, Jingga Ajani, said the REC purchase reflects the Astra Group’s support for the government’s program toward net-zero emissions (NZE) by 2060. The REC purchase aligns with Astra Group’s target to achieve NZE by 2060 and decarbonization by 2030.

PT Astra International Tbk (ASII) decided to obtain PLN RECs three years ago. ASII targets a 30 percent reduction in scope 1 and 2 greenhouse gas (GHG) emissions by 2030 from a 2019 baseline.

To achieve this, Astra is undertaking various decarbonization programs in line with the emissions control hierarchy. These include energy efficiency and conservation, using renewable energy in operations (such as rooftop solar), and utilizing renewable energy certificates from electricity providers.

“REC purchases are carried out by Astra Group companies that require the certification, depending on each company’s emission profile and decarbonization strategy,” said Astra’s Head of Corporate Communications, Boy Kelana Soebroto.

The Astra Group has been purchasing RECs from PLN since 2022, starting with socializing the purchase and retirement mechanisms across the group. Subsequently, Astra subsidiaries have purchased RECs through PLN in their respective regions.

Even so, PLN’s RECs carry both advantages and future challenges. Astra believes the benefits include reinforcing decarbonization efforts to meet the 30 percent GHG emission reduction target by 2030 and increasing the renewable energy mix to reach a 50 percent share by 2030.

PLN North Sumatra Distribution (UID) General Manager, Saleh Siswanto, said the collaboration with PTAR shows that PLN’s green product innovations are being well received by customers, including PT Agincourt Resources.

The use of REC services, he added, demonstrates company commitments in line with PLN’s efforts to reduce carbon emissions and support the creation of a green industry in North Sumatra.

“With a purchase volume of 275,000 units, this is the largest outside Java. We thank PT Agincourt Resources for its trust in PLN. We are optimistic we can deliver quality and reliable electricity in every production run. PLN is also ready to supply PT Agincourt Resources’ power needs to support increased output,” Saleh said.

PTAR’s concern for the environment in its electricity use is not new. Since 2021, PTAR has operated 2.1 MWp of rooftop solar panels along with a Sleep Energy Recovery (SER) system to regenerate power for reuse, enabling potential energy savings of 6.49 percent per month.

Solar panels have been installed on the roofs of 84 buildings spread across three mine areas. These panels automatically back up PLN electricity use. The installation and oversight of the solar system are carried out by PLN.

“The electricity generated is around 2 percent of PTAR’s total daily needs. PLN recommends a maximum PV penetration of 15 percent,” explained Abimanyu, MPDS General Administrator at PTAR, during a recent site visit by IDN Times.

He noted that PTAR works with PT Pamapersada Nusantara (PAMA) on the solar installation and maintenance, and PLN can monitor the system online.

“So how much energy is produced each day and how much is used can be monitored online,” he said.

This renewable energy practice is part of PTAR’s effort to support the Indonesian government’s target for reducing greenhouse gas emissions in line with the Nationally Determined Contribution (NDC) under the 2015 Paris Agreement.

Beyond benefits to customers like PTAR, PLN is also reaping higher profits from this Green Industry program. PLN’s first-half 2025 financial results show revenue reaching IDR 281 trillion, up from IDR 262 trillion in the same period of 2024. Electricity sales were the main driver, contributing IDR 179.58 trillion, or up 4.53 percent year on year.

From a financial health standpoint, the debt-to-asset ratio remains below 50 percent, while debt-to-equity stands at 69.1 percent. With government support and a strategy to diversify revenue, PLN is no longer relying solely on the power business. Strong profits are crucial to finance investment needs in green energy and grid digitalization.

PLN’s solid financial performance is seen as key to maintaining reliable power supply while accelerating Indonesia’s path toward clean energy targets.

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