Yogyakarta, December 19, 2024 – In an effort to support sustainable forest management and carbon emission reduction, PT Paiton Energy and the Faculty of Forestry of Gadjah Mada University (UGM) officially signed a cooperation agreement on (12/12), which is a follow-up to the Memorandum of Understanding (MOU) previously signed on March 4, 2024.
The cooperation was inaugurated through a signing ceremony conducted by the the Dean of the Faculty of Forestry UGM Sigit Sunarta, and the Chief Financial Officer of PT Paiton Energy Bayu Widyanto, which took place at the Faculty of Forestry UGM, Yogyakarta.
This cooperation includes important initiatives, such as the development of energy plantation forests and productive plantation forests, as well as the development of carbon economic value initiatives in the Social Forestry Program in collaboration with the Alam Subur Forest Farmer Group (KTH) and Ranu Makmur KTH in Probolinggo District. This collaboration is the implementation of an earlier agreement between PT Paiton Energy and the Ministry of Forestry on Social and Environmental Innovation in Social Forestry Programs.
Chief Financial Officer of PT Paiton Energy, Bayu Widyanto, said that this program is a tangible manifestation of the Company’s commitment to help reduce carbon emissions and preserve the environment. The Company also hopes that this cooperation will inspire all parties to join the social forestry program.
“This initiative shows that cross-sector collaboration can have a real impact on society and the environment. More than that, we want to ensure that this program becomes an innovative solution that not only conserves forests, but also improves community welfare through productive and environmentally friendly forest management,” said Bayu Widyanto.
Vice Dean for Research, Community Service and Cooperation of the Faculty of Forestry UGM, Widiyatno, representing the Dean, welcomed the cooperation and emphasized the importance of synergy between academia, business and society. This program not only discusses community land management, but also product development that improves community welfare without sacrificing forest sustainability.
“With the resources of both parties, this cooperation can be a model for similar programs in the future. We believe that through this collaboration, UGM can make a real contribution in showcasing innovative technologies and practices that will not only help local communities, but also support Indonesia in achieving global decarbonization targets,” said Widiyatno.
The utilization of social forestry also supports government programs related to forest security, food security, and energy security. In addition to energy crop plantations, PT Paiton Energy also engages in community development through agroforestry programs through productive plantation forests and silvopasture and other CSR programs.
Energy Forest
This collaboration includes a plan to plant Gamal trees in a social forest area in Gading District, Probolinggo Regency covering more than 200 hectares in 6 years (2025-2030) with a target of 60,000 seedlings per year. Gamal is a multifunctional energy tree, including being able to become bioenergy, which is a biomass feedstock for co-firing (fuel substitution) PLTU and as a source of animal feed.
This program is a continuation of various collaborations between PT Paiton Energy and UGM to support sustainability and energy transition in Indonesia. Previously, in October 2024, PT Paiton Energy and UGM organized a workshop on “Process Improvement in Operation and Maintenance of Coal Fired Power Plant” in Yogyakarta.
The workshop discussed measures to improve PLTU’s operational efficiency, digital technology-based asset management, and the development of future energy technologies such as green hydrogen.
The collaboration also includes the development of biomass-based energy forests by involving local farmer groups in Probolinggo Regency. This initiative aims to reduce dependence on fossil fuels while supporting sustainable forest management.
With a focus on sustainability, PT Paiton Energy, through its CSR program, is optimistic that this collaboration will make a real contribution to the environment, society and national energy security in the future.
In implementing CSR, PT Paiton Energy – PT Paiton Operation and Maintenance Indonesia (POMI) always applies the Penta Helix concept, which is a synergy and collaboration of five important components: government, community, academia, business, and media. These five elements are consistently involved in every CSR program organized by Paiton Energy and POMI.
PT Paiton Energy has implemented its CSR program since 2000 which was designed annually and monitored by the Community Development Committee. The programs are categorized into three focuses, namely supporting the sustainability of Companies (power plant), socio-economic sustainability, and energy and environmental sustainability.
PT Paiton Energy is the first and one of the largest Independent Power Producer (IPP) operating in Indonesia. The shareholders of the Company consist of RATCH Group, Nebras Power, and Medco Daya Energi Sentosa (MDES).
