Semen Indonesia

Semen Indonesia (SMGR) is a major cement producer in Indonesia, a sector known for its carbon-intensive manufacturing process. The company's core business of cement production inherently generates significant greenhouse gas emissions, both from the energy-intensive kiln operations and from the chemical process of calcination.

According to Tracenable data, Semen Indonesia has not set a Science Based Targets initiative (SBTi)-approved emissions reduction target. The company lacks a public commitment to a net-zero goal aligned with the Paris Agreement. This absence of a validated, science-based transition plan places it behind sector peers that have established such roadmaps. Leadership has not demonstrated treating emissions governance as a core strategic priority comparable to its operational expansion.

PT Semen Indonesia (Persero) Tbk operates cement plants and limestone mining in ecologically sensitive karst landscapes. The company’s planned facility in the Kendeng Mountains of Rembang Regency, Central Java, was to be built atop a designated groundwater basin (CAT area), threatening local water sources. This led the Strategic Environmental Assessment Team to recommend against the project. On January 16, 2017, Central Java Governor Ganjar Pranowo revoked the company’s permit for this plant, citing environmental concerns. The following day, January 17, the governor also revoked the company’s mining permit in Rembang. Local community opposition to the project was sustained, with residents rejecting the environmental permit that served as the basis for the mining licenses.

A 2016 assessment by the Heinrich Böll Foundation highlighted the environmental conflict surrounding Semen Indonesia’s subsidiary, Semen Gresik, which was building a new plant with a 3-million-ton capacity in the region. The analysis cited the project’s potential impacts, including air pollution and other environmental damage. While the company publishes sustainability reports and some facilities use alternative fuels like refuse-derived fuel (RDF), its operations remain linked to significant land use conflicts and documented risks of ecological harm, particularly to critical water resources in karst ecosystems.