Environment Social Governance

PT. AKR Corporindo, Tbk

Emission Reduction

AKR is supportive towards the efforts to reduce GHG emissions in its daily operations that contribute to global warming and climate change. The total emissions produced by AKR, among others, relate to petroleum and electricity. The use of petroleum produces direct GHG emissions (scope 1), while the use of electricity produces indirect GHG emissions (scope 2). In addition to the GHG emissions in scope 1 and 2, the Company also produces emissions from its air conditioning machines and small fire extinguishers (APAR).

Other sources of air emissions managed by the Company include air emissions from the petroleum of operational vehicles, generators, and transportation business, including shipping by trucks and ships. In managing emissions, the Company fully supports the Republic of Indonesia Presidential Regulation No. 61 in 2011 regarding the National Action Plan on Reducing Greenhouse Gas Emissions “RAN-GRK”.

Reducing air emissions is important for AKR. In its daily operations, in 2019, the Company operated more than 300 trucks and 12 tankers. To reduce air emissions, the trucks transporting petroleum and basic chemicals are tested for emissions. Using only those trucks that passed the test helps reduce emissions.

The Company also reduces air emissions by an operating transportation fleet powered by environmentally friendly high-octane fuel of octane 92 and above. In addition to preserving the engines and reducing any residue, this type of fuel was chosen due to its perfect and effective combustion that reduces air gas emissions. 

At JIIPE, the Company reduces the emissions by using environmentally friendly natural gas for its power plant.

In addition, AKR has also participated in the Indonesian Government’s initiatives to use biodiesel. Since September 1, 2018, in accordance with the Government policy, AKR has been fully supporting the distribution of Biodiesel under the Government initiative. In 2019, AKR distributed 1.9 million KL of solar containing 20% FAME derived from palm oil products, to almost all its industrial customers. In 2020, we will participate in in the Government B30 program and install in-house blending facilities to accomplish the targets.

As for ozone depleting substances, the Company had replaced synthetic refrigerant Freon R-22 with eco-friendlier substances for the air conditioners. This is further proof of the Company’s steadfast commitment to ozone layer recovery.

What is also important, apart from just building physical facilities at Java Integrated Industrial and Port Estate (“JIIPE”), the Company has also undertaken reforestation by planting trees to produce more oxygen and reduce carbon dioxide. The trees will in turn help with water drainage and erosion control, and preserve soil fertility and reduce air pollutants. In 2019, JIIPE planted 200 trees together with KODIM Gresik. In 2020, the Company plans to plant trees together with POLAIRUD in the 10,000 mangrove conservation program.