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May 30, 2022

MAS Holdings unveils first renewable-powered facilities in Indonesia

MAS Holdings, has announced two of its production facilities in Central Java, Indonesia, will become the company's first manufacturing units to be powered entirely by renewable electricity.

By Laura Husband

MAS Holdings explains the carbon footprint of a clothing item produced at PT MAS Arya Indonesia (MAS Arya) renewable-powered facilities in Indonesia is expected to reduce by between 5% to 15%.

The initiative is also expected to reduce MAS Arya’s total carbon footprint by an estimated 3,000 metric tonnes of carbon dioxide equivalent, which is said to be equal to eliminating the annual carbon emissions of more than 657 passenger vehicles.

MAS Arya has entered a 15-year agreement with Indonesia’s state-owned electricity supply and distribution entity, PT PLN (Persero), to purchase renewable electricity, and it is the first firm in Indonesia’s Semarang Region to join the programme.

All electricity purchased by MAS Arya will be generated through geothermal power plants, which will reduce the facility’s carbon emissions from its total energy use by about 98%. Each unit of power purchased by the MAS Arya facilities will also be backed by a Renewable Energy Certificate (REC), which confirms the environmentally-friendly nature of the power generation source.

The scheme was introduced as part of Indonesia’s efforts to increase renewable energy in its energy mix from 11% in 2021 to a quarter (25%) by 2025. It is accredited by the World Resources Institute (WRI), which is a non-profit entity that is dedicated to environmental sustainability.

Head of sustainable business at MAS Holdings, Sid Amalean, explained: “The transition to renewable electricity at MAS Arya marks a key milestone in MAS’ journey to reduce the environmental impact of our operations,”

He added: “To achieve a meaningful impact in the battle against climate change, public-private collaborations of this nature are critical. MAS is actively pursuing similar opportunities in other countries in which we operate. Besides reducing the direct emissions from our operations, MAS has also invested significantly in concerted initiatives to reduce the environmental impact of our supply chain.”  

PLN UP3 Semarang’s manager Eric Rossi noted: “Indonesia understands the importance of public-private partnerships to accelerate our renewable energy generation. We value MAS’ long-term commitment to purchase renewable energy certificates, which supports the commercial viability of renewable energy generation.”

The renewable electricity announcement is part of MAS Holdings’ overarching ‘Plan for Change’ sustainability strategy. The company said it is committed to minimising its environmental impact by reducing its emissions footprint. The Plan for Change is keen to inspire sustainable change within its business, among its customers, people and communities, and across the planet, under the focus areas of what it describes as: ‘Products, Lives and Planet’.

The company, which describes itself as South Asia’s largest apparel and textile manufacturer, has also signed up for the Science-Based Targets initiative (SBTi), with a commitment to reduce its absolute scope 1 and 2 greenhouse gas (GHG) emissions by 25.2% by 2025 from 2019 levels. This covers emissions generated directly from its operations and through the purchase of electricity from utility providers.

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