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Gunung Raja Paksi bolsters commitment to the production of sustainable steel in Southeast Asia via two MoU signings with Fortescue Future Industries and KADIN

The recent new MoU signings are in line with GRP’s mission to decarbonise the regional steel industry as outlined in its most recently launched ESG Strategy Handbook

JAKARTA, INDONESIA – Media OutReach – 14 November 2022 – PT Gunung Raja Paksi Tbk (GRP), a member of Gunung Steel Group and one of the largest private steelmakers in Indonesia today, reaffirmed their commitment towards sustainable steel manufacturing for the Southeast Asia region by signing two new Memorandum of Understandings (MoUs), one with Fortescue Future Industries (FFI), a global green energy company and the other with Indonesian Chamber of Commerce and Industry (KADIN), the government agency driving business and economic development in Indonesia.


The MoU with FFI explores collaboration on green hydrogen and green ammonia use cases, whereas the agreement with KADIN pledges GRP’s commitments towards net zero, which are key focus areas following the release of their recent Environmental, Social and Governance (ESG) Strategy Handbook. These will propel the company forward in its agenda of decarbonising the region’s steel industry through accelerating net zero emissions and promoting the use of green energy, which are key focus areas in its ESG strategy.

Steel production is one of the world’s most polluting and energy consuming activities making it a major contributor to global emissions. According to the World Economic Forum, Asia’s steel industry alone accounts for more than 70% of the carbon emissions in global steel production to date. As the largest steelmaker in Indonesia, GRP is leading the charge as exemplified by these MoUs, which lay the foundation for further environmental initiatives in the coming future.

“Given the devastating impact of climate change, it has become a business imperative for leaders to act towards ensuring a sustainable supply chain in their growth journey. The steps we take today will build the future for tomorrow, therefore we are working with these partners who have the expertise to drive our business and the steel industry to a prosperous and more environmentally friendly future,” said Tony Taniwan, Executive Committee at GRP.

Under this MoU, GRP will be collaborating with FFI to explore technical and commercial use cases for green hydrogen and green ammonia as well as the implementation of technologies aid in the utilisation of green energy in the supply chain and potential offtake collaboration. The use of green hydrogen could allow GRP to produce low-emission steel in what is a particularly hard-to-abate sector. This is one of key action items in transforming the steelmaking operations in particular to the environmental impact of the business.

“We are leveraging the right knowledge and expertise to incorporate sustainability initiatives alongside business processes in helping to make our sustainability strategy more viable in the long term. We also wanted to ensure the positive impact of economic growth is not achieved with the expense of our people and environment,” said Kimin Tanoto, Executive Committee at GRP.

“Working with FFI and KADIN, both who are knowledgeable and experienced within their own fields, will help us discover and embrace the right technologies and methods of harnessing these cleaner solutions while paving the way forward towards net zero in the region,” said Kelvin Fu, Advisor at GRP.

“Fortescue is the only major heavy industry company in the world with a real construction plan to get to real zero and we are already rapidly beginning to acquire and implement the technology required to deliver on our 2030 decarbonisation target. If we are to have the impact needed to reduce carbon emissions, we cannot do this alone. We need other emitters – companies like GRP – to follow our lead and we are determined to do everything in our power to help them on their own path to decarbonisation,” says Dr Andrew Forrest AO, Chairman and Founder of Fortescue.

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To propel Indonesia forward towards its goal of reaching net zero in 2060, GRP has partnered with KADIN under its Net Zero Hub initiative which is designed specifically to support Indonesia’s private sector in their journey in achieving net zero emissions. Under this partnership, GRP reaffirms their pledge to net zero and will work closely with KADIN to identify clear benchmarks and priorities for decarbonisation to help the company reach its net zero target.

“With our recent initiatives such as the ESG Strategy Handbook and the recent MoU signings which study the use of next generation technology and pledge towards net zero, we are well positioned to further our way towards more sustainable production of steel,” said Sheren Omega, Head of Sustainability of GRP

“Currently, we are witnessing Indonesia being on track towards achieving net zero in 2060, with policy developments in the making such as the formulation of a carbon tax to be imposed on fired power plants and investments into solar panels and electric vehicles. This can only be achieved with collaboration with private sector partners such as GRP. We hope that this MoU will pave the way for future partnerships with more industry players to build a low carbon industry ecosystem for the future generations of Indonesia,” said Muhammad Yusrizki, Chairman of Renewable Energy Committee at KADIN.

GRP is dedicated towards the sustainable production of steel in the region and seeks to work closely with stakeholders from the government and private sector as part of its mission. To foster collaborations and alignments in building a sustainable future, GRP participated in the panel discussion on 11th November at the Indonesia Net Zero Summit, discussing the importance of decarbonising the industry’s supply chain.

Hashtag: #GunungRajaPaksi

About GRP

PT Gunung Raja Paksi Tbk (GRP) is part of the Gunung Steel Group, which is one of Indonesia’s major private steel businesses. Our company began its operations in 1970 in Medan, North Sumatra, by producing hot steel, then progressed to manufacture steel beams and sheets.

With over 50 years of steel industry experience, GRP has a production capacity of 2,200,000 tons of high-quality steel annually approved by local and international certifying company.

Today, our company has become one of the largest private steel companies in Indonesia. Gunung Raja Paksi, “Shaping Tomorrow”. Together we develop a better future.

About Fortescue Future Industries (FFI)

Fortescue Future Industries (FFI) is a global green energy company committed to producing green hydrogen, containing zero carbon, from 100 per cent renewable sources.

Green hydrogen is a zero-carbon fuel that when used produces primarily water. It is a practical and implementable solution that can help revolutionise the way we power our planet: helping to decarbonise heavy industry and create jobs globally.

FFI is leading the green industrial revolution, developing technology solutions for hard-to-decarbonise industries, while building a global portfolio of renewable green hydrogen and green ammonia projects.

FFI is also leading the global effort to help decarbonise hard-to-abate sectors and is developing and acquiring the technology and energy supply to help decarbonise the iron operations of one of the world’s largest producers of iron ore by 2030 (Scope 1 and 2) – our parent company Fortescue Metals Group (ASX FMG).


Kadin or Chamber of Commerce and Industry is the umbrella organisation of the Indonesian business chambers and associations. It is focused on all matters relating to trade, industry, and services, and is highly committed to tapping potentials and synergies of the national economy, offering a strategic forum for Indonesian entrepreneurs.

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