JAKARTA. The initiative to process urban solid waste into Refuse Derived Fuel (RDF) to replace coal fuel succeeded in bringing the Best CEO award to Donny Arsal, President Director of PT Semen Indonesia (Persero) Tbk (SMGR).

This award was given by Tempo-IDNFinancials at the Top CEO event in Bandung, on Friday (15/11). This award was given based on the Tempo-IDNFinancials team's assessment of a number of innovations and sustainability commitments that have been carried out by a number of leaders of listed companies.

The initiative to process urban solid waste into RDF has been carried out by SMGR since last year. SMGR has even collaborated with several city and district governments in managing RDF since 2023.

At the TPS Jeruk Legi Cilacap, SMGR succeeded in processing solid waste into 20,667 tons of RDF. The results of the RDF processing are then used to replace coal at the production facilities of PT Solusi Bangun Indonesia (SBI), one of the company's subsidiaries that operates the factory in Cilacap.

In its 2023 sustainability report, SMGR admits that there is a slight increase in production costs when using alternative fuel from RDF. Therefore, the company does not just stop at this innovation, but also increases the share of the renewable energy mix, by exploiting the potential of solar power as a supplier of electricity.

Apart from that, SMGR has also prepared a number of strategies to strengthen its capital structure. This is done to meet R&D (Research and Development) needs, in order to realize the decarbonation mission in the next few years.

According to idnfinancials.com data, SMGR recorded a net profit of IDR 2.17 trillion in the 2024 financial year. In the last five years, SMGR was one of the issuers that consistently distributed cash dividends. This makes the company's dividend yield at the level of 2.25%.

Due to this achievement, Tempo-IDNFinancials maintained SMGR's position in the Tempo-IDNFinancials 52 Index (Index52) in the Main Index, High Dividend and Big Cap categories. (KR/LM)