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MHU Cuts Emissions and Strengthens ESG Transparency

| | Source: REPUBLIKA Translated from Indonesian | Mining
MHU Cuts Emissions and Strengthens ESG Transparency
Image: REPUBLIKA

JAKARTA – PT Multi Harapan Utama (MHU) recorded a 41.34 per cent reduction in carbon emissions in 2024 compared with the previous year through a number of energy-efficiency and environmental management programmes. The subsidiary of MMS Group Indonesia (MMSGI) has also strengthened transparency in its environmental, social and governance (ESG) reporting to ensure its sustainability performance can be measured and held to account.

MHU President Director Kemal Djamil Siregar said emissions reduction and environmental management need to be accompanied by transparent disclosure. According to Kemal, sustainability principles should be reflected in both operational activities and community empowerment programmes.

“Sustainability must be reflected in tangible performance and communicated transparently and accountably. We continue to ensure that our initiatives deliver measurable impacts, in environmental management, emissions reduction and strengthening community self-reliance,” Kemal said in a statement on Friday (30 October 2026).

Company records show MHU’s total Scope 1 and Scope 2 emissions in 2024 reached 275,065.53 tonnes of carbon dioxide equivalent (CO₂e). Meanwhile, Scope 1 emissions fell 40.89 per cent from the 2021 baseline, exceeding the eight per cent reduction target set for 2030.

The emissions reduction was supported by the HYDRUM programme, which uses hybrid technology to improve the fuel efficiency of the dump-truck fleet. MHU has also optimised operational energy use and introduced the data-based ITIMER system to monitor the time vehicles’ engines remain running while idle.

In addition, the company has begun trialling SANY 445 EV electric dump trucks in Loa Kulu, Kutai Kartanegara. The initiative is part of MHU’s efforts to develop lower-emission mining technologies.

In 2024, post-mining land reclamation also contributed an estimated 273,419 tonnes of CO₂e in carbon absorption, according to the company’s calculations. MHU’s emissions measurement follows ISO 14064-1 standards and the guidance of the Intergovernmental Panel on Climate Change (IPCC).

The company also reports its environmental performance through the Environment Ministry’s Company Performance Rating Assessment Programme (PROPER). The reporting is one of the instruments supporting accountability in the company’s environmental management.

For its sustainability disclosures, MHU received the Distinction in ESG Disclosure award at the Investortrust ESG Awards 2026 in Jakarta on Thursday (29 October 2026). The award recognised the transparency of the company’s ESG reporting.

MHU also received the Green Achievement in Emission Reduction and Ruby Achievement in Emission Transparency awards at The Best Corporate Transparency and Emission Reduction Awards 2026.

Alongside its environmental work, MHU runs a Community Development and Empowerment Programme (PPM) to strengthen the local economy around its operational areas. One initiative is the development of Payang Sejahtera Village-Owned Enterprise (BUMDes), which the company has supported since 2017.

Payang Sejahtera BUMDes’ turnover increased from Rp4.6 billion in 2019 to Rp27.6 billion in 2023. The programme recorded a Social Return on Investment (SROI) value of 4.27.

MHU has also developed clean-water facilities using a former mine pit, or void, and Hydram Pump technology in Sungai Payang village. The infrastructure, with a distribution network stretching more than 3.6 kilometres, has provided clean-water access to 582 households.

Meanwhile, the Lung Anai Chocolate House programme promotes cocoa processing to increase the value added to agricultural produce. The company says the programme has helped raise the incomes of more than 100 farmers fivefold.

These community empowerment initiatives, together with the development of KUBE Koetai Harapan Utama, helped MHU win an Impactful Program Award at the Investortrust CSR Awards 2026.

On governance, MHU aligns its corporate social responsibility programmes with the Master Plan for Community Development and Empowerment (RIPPM). Implementation includes preparing annual work plans, setting performance indicators, involving communities—including Indigenous communities—and monitoring and evaluation.

The company also builds the capacity of BUMDes managers and measures social benefits through SROI to assess programme effectiveness. MHU said it would continue integrating Good Mining Practice and ESG principles into its mining operations to support environmental management and development in surrounding communities.

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