Jakarta. Plantation firm Astra Agro Lestari (AALI) has joined a growing chorus of major companies who pledge to reach net-zero emission in the coming decades.
The company’s top executive said they aim to reach net-zero emissions faster than the final deadline of 2060 set by the Indonesian government.
“Net-zero emission must be included in our long-term policies because President [Joko Widodo] has officially announced this as a national program that we the private sector must follow,” Astra Agro President Director Santosa said in a virtual gathering with journalists on Tuesday.
“We have yet to officially announce our own target but I have challenged the whole team that we must achieve it sooner than the government,” he added.
Santosa said the company may adopt methane capture technology and introduce renewable energies in daily business operations to reach the target.
As part of the company’s sustainability ambition, fresh palm suppliers are required to get Indonesia Sustainable Palm Oil (ISPO) certification before partnering with Astra Agro, he said.
Astra Agro has not opened a new palm plantation since the government imposed a moratorium in 2018.
Santosa said the company has allocated up to Rp 1,5 trillion ($105 million) in capital expenditure for the year to rejuvenate processing machines and other equipment.
"We plan a big spending on heavy machinery this year,” he said without going into details.
Since 2017, Astra Agro has introduced a digital system in its production and maintenance lines with the support of artificial intelligence and data analytics, he said.
"We have collected a massive amount of data during the first three years. With the help of machine learning technology, we can calculate agronomy and production variables more accurately to predict future production," Santosa said.
The company regularly updates its sustainability report, most recently in mid-2021.