The ROJALI program has succeeded in integrating five circular economy principles [1], namely:

1. Principle 1 (Adjust the input to the system commensurate with the level of regeneration capability):

ROJALI replaces the use of DPP with HPP. The program has directly implemented the point “Replacing non-renewable materials with renewable materials”. In the first semester of 2023, this program succeeded in saving HSD consumption by 42,204,960 liters.

2. Principle 2 (Matching the output of the system to the level of absorption capacity)

The ROJALI program, which sources energy from hydropower, can in practice reduce greenhouse gas emissions. The program has directly implemented the point "Replacing processes with processes with lower levels of waste/waste generation (eco-efficiency process)". In the first semester of 2023, this program succeeded in reducing GHG emissions by 77,978 tons of CO2e.

3. Principle 4 (Maintain the value of the system's natural resources)

By switching to hydroelectric power plants, which in fact have better durability, the program has directly implemented the point "Increasing durability".

4. Principle 5 (Reducing system size)

Through the ROJALI program, PT Vale reduces the use of HSD, which automatically reduces the need to procure goods for maintenance of environmentally unfriendly DPP units. On the other hand, we procure environmentally friendly goods for hydropower maintenance. The program has directly implemented the point “Promoting environmentally friendly procurement”

5. Principle 6 (Designing a circular economy)

The ROJALI program is a new methodology applied at PT Vale and similar mines. The method used is by adding an alternative route sourced from hydropower for PT Vale's Auxilliary Grid electricity needs. The program has directly implemented the point “Designing new methodologies to guarantee continuous improvement”.

[1] Suárez-Eiroa, B. et al. (2019) ‘Operational principles of circular economy for sustainable development: Linking theory and practice’, Journal of Cleaner Production, 214, pp. 952–961. doi:10.1016/j.jclepro.2018.12.271. 

In addition, the ROJALI Program has an impact on the following aspects:

• Impact on Environmental Aspects of ESG:

Through this program, in the first semester of 2023, we managed to conserve 787,220 GJ of energy, equivalent to a cost-saving of Rp. 585,776,817,783, which was previously spent on purchasing HSD.

• Impact on the Company

The ROJALI program brings about substantial changes to our company's subsystems, altering process flows and providing benefits in the product value chain, including value chain optimization. During the first half of 2023, we achieved cost savings amounting to IDR 585,776,817,783 by eliminating the need to purchase HSD.

• Impact on Consumers

  • Consumers can take part in efforts to reduce fossil energy consumption and greenhouse gas emissions simultaneously.

  • Consumers get a new perspective regarding environmentally friendly products (green products).

  • Obtain a positive assessment of the company's compliance with ESG and achievement of SDG commitments.

• Impact on Suppliers

Suppliers also experienced a positive outcome from this program, with a financial gain of IDR 30,448,605,000, calculated from the expenses associated with the installation of alternative routes (ROJALI).