Arsari Tambang Smelter Now Uses 100 Percent Renewable Energy Electricity

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PT Arsari Tambang said that its smelter facility now fully uses electricity from renewable energy. The statement was made directly by the President Director of PT Arsari Tambang, Aryo Djojohadikusumo, as part of the company's commitment to sustainability and net zero emission targets.

According to Aryo, this transition was made possible after Bangka Island was connected to the Sumatra Island electricity grid. Electricity used at the smelter is now sourced from a geothermal power plant in Sarula as well as hydro plants in Aceh and North Sumatra. “I am proud to state that now the Arsari Tambang smelter is supplied with electricity from renewable energy plants in Sumatra,” said Aryo, Monday (16/6/2025).

Although the use of renewable electricity has reached 100 percent at the refining facility, Aryo admits that the operation of heavy equipment in the mining field still depends on diesel fuel. However, according to him, efforts to achieve net zero as a whole are still in the range of 60 to 70 percent, with a target completion within the next five to ten years.

Aryo emphasized that this step is also a response to global market demands that increasingly emphasize sustainability principles.

He said more than 50 percent of the world's tin use is now related to the semiconductor and electronics industries, which are very concerned about environmental aspects in the supply chain. "We as miners must follow the market demands. The customer is king," he said.

In addition to emission reduction, PT Arsari Tambang also has achievements in environmental rehabilitation programs. In 2024, the company recorded a 91 percent success rate in rehabilitating the watershed in Krakas, Central Bangka. The types of plants used in the program include cashew, shrimp cypress, and eucalyptus. According to Aryo, the planting of these productive trees not only aims to improve the environment, but also provides economic benefits for the local community.

The company has also started to restore marine ecosystems, especially coral reefs in the Belinyu area, Bangka Parent. Aryo called the move as part of marine mine reclamation and made Arsari Tambang the first tin company in Indonesia to do so actively.

In terms of business, the company targets production of 2,000 tons per year with a projected turnover of at least Rp1 trillion. Although exports, particularly to China, are still the main market, Aryo emphasized that the domestic market is now growing significantly.

He also appreciated the support of the local government and the Batam Concession Agency in supporting the acceleration of the special economic zone and free trade zone in the region where Arsari Tambang built a tin downstream factory, namely solder.

Aryo emphasized that although the company cooperates with foreign partners, the majority ownership remains in the hands of the nation's children. "Foreign partners only hold minority shares. The majority ownership still belongs to Indonesia's best sons and daughters," he said.