Vale Indonesia Plans USD 450 Million Investment in Renewable Energy
Thu 20 Aug 2026, 16:38 PM
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The need for large amounts of energy is one of the challenges mining companies face as they expand their businesses. PT Vale Indonesia Tbk has opted to develop renewable energy to meet its mining operations’ energy needs, with an investment of more than USD 450 million.
Vale Indonesia Director and Head of Sustainability and Corporate Affairs Budiansyah said the company had previously been faced with the option of using cheaper energy sources to meet its mining operations’ needs, including coal, which was considered capable of generating hundreds of megawatts of power. However, the company chose to develop renewable energy as part of its long-term strategy.
“The company decided to develop renewable energy by utilizing the remaining potential or studies on the possibility of generating energy,” he said at the launch of Bank DBS Indonesia’s research titled Identifying Challenges and Strategic Steps Toward Sustainable Transition in Five Key Sectors in Jakarta on Thursday, August 20, 2026.
Environmental and water management challenges
Budi added that mining companies also face environmental challenges. According to him, nickel and coal mining use open-cast mining methods, which require large-scale land clearing.
Therefore, the company continues to conduct mining activities while taking the environment and water resource management into account amid changing market conditions.
“The challenge is how we can move forward while addressing environmental aspects, water resource management, and, at the same time, dealing with market dynamics,” he said.
He noted that mining products remain part of various human needs. Therefore, the challenge is to ensure that mining activities are carried out properly and responsibly.
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