Create Sustainable Values, GIS Strengthens Operational Advantages With Eco-Inovation And Social Innovation

JAKARTA - PT Semen Indonesia (Persero) Tbk (SIG) continues to strengthen its commitment to carrying out sustainable business operations that adhere to the three main principles of Sustainable Development Goals, namely property, people, and planets. This commitment is realized by presenting a breakthrough in the Social and Environmental Responsibility program (TJSL) which not only supports environmental sustainability and improves people's welfare, but also has a positive impact on the Company's performance growth.

Minister of State-Owned Enterprises (BUMN) Erick Thohir emphasized that the Environmental, Social, and Governance (ESG) aspects are an important pillar for sustainability development.

"All companies have to apply ESG principles. It needs adaptation, but we have to believe that Indonesia can," said Erick Thohir.

He underlined that the implementation of ESG is important to help achieve the Net Zero Emission (NZE) target by 2060 or sooner.

GIS President Director, Donny Arsal said, as a market leader in Indonesia, GIS faces the challenges of climate change, technological development, globalization issues and increased urbanization. Therefore, SIG always carries out ESG-based best business practices to increase capacity in facing challenges and optimizing opportunities that support sustainable development.

GIS has a Sustainability Roadmap 2030 which contains a comprehensive and applicative sustainability performance strategy and indicator, a guide for all Company business entities in realizing sustainability commitments.

"SIG appreciates the support of the Ministry of SOEs and in particular, the Ministry of Environment and Forestry (KLHK) of the Republic of Indonesia which has initiated the Company's Performance Assessment Program in Environmental Management (PROPER) as one of the benchmarks for ESG's performance for industries in Indonesia. We believe that the existence of a PROPER will maximizeIG's contribution in supporting the acceleration of the achievement of Sustainable Development Goals in Indonesia," said Donny Arsal, in his statement, Sunday, December 1.

In the pillars of Prosperity and Planet, SIG ensures the application of the principle of sustainability to encourage growth, and at the same time maintains the environment and natural resources for the future. This is done through modern technology applications in production processes, such as hydrogen injection and the use of alternative fuels in the process of producing green cement whose carbon emissions are 38 percent lower than conventional cement, for sustainable infrastructure development and an increase in the green economy.

One of its derivative products, namely the trigger interlock brick, is an innovative solution for the efficiency of using building materials in the construction of housing that is fast, strong, and affordable.

To accelerate the achievement of decarbonization, GIS develops clean energy through solar panel installations for substitution of electrical energy in operational units, and optimization of hot gas removal from the cement production process (Waste-Heat Recovery Power Generation). SIG also performs post-mining land reclamation to ensure a sustainable ecosystem, as well as collaborate with governments and communities to increase competitiveness and create shared value.

In the People pillar, GIS participates in improving the welfare of the community through empowerment programs that focus on poverty alleviation through job training in the construction and funding sector of micro enterprises, empowering vulnerable people through skills training and access to capital to help women become drivers of the local economy, as well as local partnerships through support for SMEs for inclusive supply chains, thus creating a positive economic impact on the surrounding community.

Donny Arsal added, in 2024 SIG will boost several flagship programs to support significant decarbonization initiatives and optimize alternative energy sources from waste and waste in several company operational locations. Among them, integrated waste management uses biomembran technology and the Baruwani Collaborative Space Circular Hub Cilacap which is managed by a subsidiary of GIS, namely PT Solusi Bangun Indonesia Tbk (SBI).

The Baruwani Circular Hub Collaborative Space is a social innovation that integrates environmental management, circular economy, creativity, and community empowerment. From the results of the evaluation study conducted, it shows that the Social Return on Investment (SROI) ratio for the Baruwani Circular Hub Collaborative Space program is 1:1.59 or above 1 which indicates that this program brings benefits greater than the costs incurred.

Other flagship programs come from GIS subsidiaries, PT Semen Padang, including your cultivation as a renewable energy source with the involvement of the Company's fostered farming group. Based on the results of an evaluation study, it shows that the SROI of the Makandra cultivation program is 2.00 or 1.2 which means that each Rp1 fund invested by PT Semen Padang, produces social, economic and environmental benefits of Rp2.

Meanwhile, in Tuban, East Java, after successfully transforming and utilizing post-mining land to Ecopark Kambang Semi as a means of agricultural, livestock and fishery educational tourism, SIG expanded the Ecopark Kambang Semi program by utilizing corn tuna waste as an alternative fuel in cement manufacturing.

"By integrating the principles of Prosperity, People, and Planet, GIS not only creates economic value but also contributes to poverty alleviation, community empowerment, and environmental conservation. As leaders in the cement industry, we are committed to building a future that we want to be greener, more inclusive, and sustainable," concluded Donny Arsal.