Support Sustainability Through ESG Innovation, Pupuk Kaltim Wins SME Award 2023

JAKARTA - The community empowerment program initiated by PT Pupuk East Kalimantan (Pupuk Kaltim) through the innovation of liquid kitosan products from competitive waste, won the 2023 Sustainable Marketing Excellence (SME) Award, the Waste Management and Community Program of The Year category from Marchairs magazine. The award was received by VP Investor Relations Pupuk Kaltim Benny Swastika Nasution, at CGV FX Sudirman Jakarta, Wednesday 12 July.

Benny said this award is proof of the continuity of Pupuk Kaltim's commitment to implementing business strategies in the corridors of Environment, Social and Governance (ESG), by prioritizing the principle of sustainability to provide benefits to the community and the environment significantly.

According to Benny, the East Kalimantan Pupuk business is not only profit-oriented, but also real benefits that are provided for the community and the environment. Where the ESG is implemented by Pupuk Kaltim in various innovation programs with improvements and improvements every year.

"The ESG commitment is one of the focuses carried out by Pupuk Kaltim in supporting sustainability in the development of business processes, with clear targets and benefits of contribution to the region to the community," said Benny, in his statement, quoted Thursday, July 20.

This award was achieved by Pupuk Kaltim for the same innovation, after previously receiving appreciation at the international level through the 2023 Asia Responsible Enterprise Awards (AREA), the Social Empowerment category. The innovation of liquid products departs from the high production of marine products in the coastal area of Bontang City, and has the potential to be developed as an economic-valued product.

This is also an effort to change the old habits of the community so that they no longer throw waste into the sea, especially the shell of the crabs that accumulate from the rest of the sales by collectors. Through liquid kitosan innovation, the impact of disposing of competitive shell waste that has the potential to cause sedimentation and silting of the seabed has also been successfully suppressed. Besides providing added value from the economic side with the empowerment carried out.

"One of the challenges of culture is throwing waste into the sea because of the difficulty of management, as well as the lack of potential for developing other products from these waste products. This is what Pupuk Kaltim answered through liquid kitosan innovation, so that waste wasted can be used into something that produces and is environmentally friendly," continued Benny.

Along the way, Pupuk Kaltim also prepared infrastructure for assisted groups that were empowered, supported by various waste processing and sorting skills from the start. The fostered group with the name Cangkang Salona has so far succeeded in reducing feeder shell waste up to 920 Kilograms (Kg), and has received a patent in the form of adding acetate acid (CH3COOH) as a solvent for wetting into liquid fertilizers.

Pupuk Kaltim also involved various parties in the process of testing the effectiveness of kitosan, such as the Testing Laboratory of the Indonesian Center for Biotechnology and Bioindustry Research (LP-PBBI) and the University of Mulawarman (Unmul) Samarinda. Likewise, in terms of business management, it has obtained a UKL-UPL permit from the Environmental Service (DLH) of Bontang City for production activities.

"Currently, the liquid fertilizer product under the Kitosan Salona trademark has passed the quality test, and is considered effective in increasing plant production results to reducing the intensity of pests and diseases," said Benny.

In order to realize the success of the program, Pupuk Kaltim has also set a number of development targets. Where the fostered group consisting of housewives and youth on the coast of Selamabai, Loktuan Bontang Utara Village, was prepared to become a producer of home industry-scale liquid fertilizer in Bontang City, as a form of added value for the community and the environment.

"This innovation is also an effort to encourage the realization of 17 indicators of the Sustainable Development Goals (SDGs) and community independence through the concept of sustainable development," explained Benny.

Benny also ensured that Pupuk Kaltim was very concerned about sustainability aspects, in accordance with ESG principles with various commitments and innovations carried out. Mainly related to environmental conservation, reducing carbon emissions, saving energy, to suppressing the use of plastic and developing area reforestation programs.

"Pupuk Kaltim continues to synergize aspects of sustainability in the Company's business activities, as well as focus on community independence from the integration of the People, Planet, Prosperity, Peace and Partnership (5P)-based economic system," said Benny.

CEO of Markerings Iwan Setiawan, said that the SME Award is an appreciation and appreciation for companies and organizations that have successfully implemented sustainable marketing, and have an impact on strengthening the economy, empowering the community and preserving the environment.

The business world is currently required to practice sustainable marketing, by treating customers as fully human beings who have reason, heart and spirit. So that the company not only provides satisfaction to customers, but also compliance with life that not only pursues profits, but also sustainability.

"Currently we are not only required to think about functionality and emotions, but also to be holistic. This means that business activities not only refer to our own lives but also society and the environment. So that companies other than pursuing profit, must also care about people and planets," said Iwan.