Jakarta. Adaro Energy Indonesia (ADRO), a coal-focused company, is ambitiously transitioning to become a green energy provider by investing in renewable energy businesses. In 2024, the company has allocated $300 million (Rp 4.78 trillion) from its total capital expenditure of $600-700 million for the development of renewable energy business lines.

President Director Garibaldi Thohir said the company is not planning to open new mines or acquire similar assets. Instead, Adaro aims to maximize the exploration of existing mines. This commitment is part of the company's early-stage efforts to transition into a green energy provider. 

"We will optimize the use of existing assets to the fullest," he explained during a public presentation on Wednesday.

Garibaldi, often referred to as "Boy Thohir," emphasized the company's commitment to the green energy transformation. "Adaro is very serious about this transformation. We are striving to enter all types of green energy, including carbon capture technology in the future," he said.

Although the transition to green energy will take time, Garibaldi believes that the demand for green energy is increasing every year. "In addition to domestic demand, the prospects for green energy are also open to international markets, including Singapore and other countries," he added.

The primary demand comes from electric vehicle (EV) support, particularly for aluminum. Garibaldi said that the demand for aluminum will continue to increase, in line with the need for lighter car bodies for optimal EV performance. This demand will be supplied by the company's subsidiary, which operates as a green aluminum producer.

"The demand for aluminum for EVs must be lightweight because the batteries are heavy. To optimize the distance, the vehicles need lighter bodies, which will be made of aluminum. We will supply both domestic and export markets," he explained.

In addition to Garibaldi's statement, Director of Adaro Energy Indonesia, Christian, mentioned that in the hydro sector, the company aims to have a hydroelectric power plant with a capacity of up to 1.3 gigawatts (GW) located in Mentarang Induk, North Kalimantan. The project is expected to be completed by 2030, and the company is currently in preparation. 

"Once this hydroelectric power plant is operational, we hope that the electricity generated can be used to produce green aluminum," said Christian.

Adaro's shares rose by 1.4 percent in early trading on Thursday.