Jakarta, INTI - PT Phapros Tbk. (PEHA) continues to accelerate the implementation of energy management and the use of new and renewable energy (NRE) to increase operational efficiency. This step is taken in line with changing energy consumption patterns, which are now dominated by the industrial sector, with the increasing use of mass transportation by the public.
Phapros' Utility & Energy Manager, Arie Wicaksono, explained that energy costs are a critical component of the company's cost structure. Currently, they contribute approximately 20%–30% of the total Cost of Goods Sold (COGS).
"As an industry, we cannot deny that our primary focus is profit-making, so our primary focus is on competitiveness, so we can sell our products and generate maximum profit. Energy efficiency and NRE play a significant role in COGS. Energy costs account for 20%–30% of this cost, which we pay PLN Rp1.2 billion–Rp1.5 billion per month," Arie said in a discussion held in Semarang on Thursday, March 12, 2026.
He added that efficiency in operational components will have a direct impact on increasing product price competitiveness and company profitability.
Four Main Principles of Energy Efficiency
In its implementation, the company upholds four main principles: reduce, reuse, recover, and replace. Reduce focuses on reducing energy consumption from the outset; reuse focuses on reusing wasted energy, such as steam heat; recover converts waste into additional energy sources for the production process; and replace involves replacing outdated technology with more modern and efficient systems.
Technically, various efficiency measures are implemented with monitoring boiler pipe leaks, utilizing residual heat from the chimney, and optimizing the cooling system. Phapros has also installed solar panels after conducting a comprehensive feasibility study to determine the economics, costs, and potential savings.
Arie emphasized that these efficiency efforts maintain pharmaceutical product quality standards. This refers to the National Agency of Drug and Food Control (BPOM) guidelines regarding Good Manufacturing Practice (CPOB), including strict validation of the HVAC system, which must operate 24/7 to maintain product quality.
"That's the role of the BPOM. There is CPOM, which has guidelines that ensure quality, meaning the product remains high-quality while maintaining efficiency. For example, for the manufacture of injectable or non-injectable drugs, the HVAC must be on 24/7. So, the BPOM has validation guidelines. If it is successful, we implement them," explained Arie.
The Company’s Effort in Environmental Management
In addition to cost savings, energy management is also closely linked to environmental aspects. Given that national power generation is still dominated by coal with high emissions, reducing energy consumption directly contributes to reducing the company's carbon footprint.
These ongoing efforts have given results with the achievement of a Green rating in the Corporate Performance Rating Assessment in Environmental Management (PROPER) for three consecutive years. The company is currently targeting a Gold rating through consistent reductions in energy use and emissions.
Synergy within the pharmaceutical holding company PT Kimia Farma Tbk. (KAEF) also strengthens PEHA's efforts. Since joining, various environmental initiatives implemented since 2018 have become more focused and aligned with the company’s targets. Each period, the company routinely reports emissions and efficiency data for transparency to shareholders and the stock exchange through sustainability reports.
Arie emphasized that management commitment is a key factor in the success of the energy transition.
"If management is committed, we'll definitely get whatever we ask for, as long as it's feasible. This energy management combines the implementation of NRE with practices that reduce energy consumption," he said.
Conclusion
PT Phapros Tbk. (PEHA) makes energy efficiency and the use of NRE as a strategy to reduce production costs, increase competitiveness, and maintain profitability, given the large portion of energy costs in the Cost of Goods Sold (COGS). This effort is carried out through the principles of reduce, reuse, recover, and replace, as well as the application of efficient technology without sacrificing quality in accordance with BPOM standards. In addition to cost savings, this effort also reduces emissions.
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