July 3, 2024 | News Coverage

Advancing the Wood Industry: Groundbreaking of a Wood Pellet Plant

A Form of Commitment to Sustainability and Energy Efficiency.

Batang, 19 June 2024 – PT Sumber Graha Sejahtera (Sampoerna Kayoe) held a groundbreaking event for the Java Wood Pellet factory on an area of ​​5.2 hectares, which is the largest wood pellet factory in Indonesia. This event is a milestone for the company in strengthening its commitment to sustainability and energy efficiency.

Andrew Wardoyo, Director of Supply Chain Management at PT Sumber Graha Sejahtera, stated that this factory will utilise Community Forests as a source of raw materials. This initiative supports sustainable forest management by local communities, in line with the principles of Sustainable Tomorrow Starts Today. “The Java Wood Pellet Factory will be an innovation in the wood industry in Indonesia, encouraging the welfare of local communities and ensuring a greener future,” he said.

Head of the Performance Management and Strategic Enhancement Division, Alvin Puspowidjono emphasised that this factory, with a production capacity of 250,000 metric tons per year, will meet the needs of the global market, especially Japan with the Japanese Industrial Standard I2 standard. “We use local resources from Central Java and East Java, which not only reduces logistics costs but also has a positive impact on the local economy,” he said. Production is expected to begin in September 2024.

This factory is designed to produce high-quality wood pellets with large capacities, combining modern technology and environmentally friendly practices. This facility will use sengon wood as raw materials and wood waste from plywood factories, with advanced machines from Europe to ensure international quality standards.

“This factory will not only be a wood pellet production centre but also a real symbol of our commitment to environmental sustainability. “We are integrating technologies such as bio pores, rainwater capture systems and solar panels to maximize energy efficiency and use of water resources,” said Simon Sindhu Hendrajaja, Head of the Engineering and Sustainable Improvement Division.

PT Sumber Graha Sejahtera is committed to continuing to innovate in producing high-quality processed wood and maintaining the sustainability of forests in Indonesia. This is in line with the commitment of countries in the world to switch from using fossil-based energy to environmentally friendly renewable energy, where the global target is to achieve the carbon-neutral target or net zero emissions (NZE) by 2050. Through its global market expansion, the company hopes it can be one of the main contributors to the growth of the processed wood industry and sustainable development throughout the world.

In accordance with the tagline Sustainable Tomorrow Starts Today Sampoerna Kayoe believes that whatever we do today will determine tomorrow’s outcome. This is the ownership that drives Sampoerna Kayoe’s commitment to preserving the earth and safeguarding the future and our environment.