Waste Palm Processing as Livestock Feed, SIG Improves Environmental Quality and Community Welfare in Aceh

JAKARTA - PT Semen Indonesia (Persero) Tbk (SIG) through its business unit, PT Solusi Bangun Andalas, has transformed the problem of coconut waste from the Lampuuk Beach tourism area, Aceh, into a new source of income for the community. Through the Sakeladera (Coconut Waste for Prosperous Village) program, around 60 tons of coconut waste per month is processed into cocopeat (fine powder from coconut shell) for animal feed mixture, which has succeeded in reducing the cost of poultry feed by up to 60 percent while reducing carbon emissions from waste burning.

The innovation of the Sakeladera program is based on the creation of coconut waste from tourism activities on Lampuuk Beach reaching ± 60 tons per month which is left to rot or destroyed by burning so that it produces carbon emissions of up to 34.8 tons of CO₂ per month. On the other hand, local poultry farmers have difficulty getting feed and depend on supplies from outside the area. This condition makes the high cost of feed which reaches Rp. 48 million per month.

In 2024, PT Solusi Bangun Andalas initiated the Sakeladera program. In its implementation, the Company again partnered with the Millennial Generation Waste Bank (Basagemil) community which had previously collaborated in the Sobat Si Abes (Solusi Bangun Andalas Sahabat Pesisir) program since 2022.

Not only providing assistance in processing coconut waste into cocopeat as an alternative to animal feed mixtures, the Company also provides comprehensive education and assistance to Basagemil, as well as participates in socializing to the community so that this program can be accepted and run well.

SIG Corporate Secretary, Vita Mahreyni said, the Sakeladera program is a manifestation of SIG's commitment to sustainable development in accordance with the Company's sustainability pillars "Protection of the Environment" and "Creating Value for Employees and Communities" in SIG's Sustainability Roadmap 2030.

"The SIG 2030 Sustainability Roadmap is a strategic guide for all SIG business entities in realizing sustainability commitments, which contains comprehensive and applicable sustainability performance strategies and indicators. The Sakeladera program of PT Solusi Bangun Andalas as a SIG business unit is a tangible proof of the Company's concern for the environment and community in Aceh," said Vita Mahreyni, in his statement, Monday, June 22.

The Sakeladera program has proven to be successful in providing a double positive impact. The garbage volume has been reduced to 20-24 tons per month from the previous 60 tons per month. This innovation also helps a number of poultry groups in Lhoknga, Aceh, in reducing feed costs by 60% or around IDR 28.2 million per month, while reducing dependence on supplies from outside the area.

More than that, the Sakeladera program is also a source of income for local communities. This program involves 28 people in the supply chain process, ranging from collecting coconut waste on the beach, sorting and processing into cocopeat, to distribution. The cocopeat product has also passed the laboratory test of the Industrial Research and Standardization Center regarding calcium and protein content.

"The Sakeladera program shows significant economic impact with a Social Return on Investment (SROI) ratio of 2.5. This means that every Rp1 investment, generates Rp2.5 benefits for the community. We appreciate PT Solusi Bangun Andalas for this social innovation which has created economic benefits for the community and has proven to be successful in overcoming environmental damage," said Vita Mahreyni.

One of the community beneficiaries of the Sakeladera program, Muhammad Ikhsan expressed his gratitude for the Company's presence and concern for the community, especially local farmers. Ikhsan, who is part of the Andalas Group of Andalas Chicken Business, assessed that the Sakeladera program has brought many positive changes that have a direct impact on the smooth operation of the business carried out by his group.

"The Sakeladera program is very innovative and provides many benefits. This program has brought changes that can be felt directly by the community. Now coconut waste is no longer thrown away for free. We can process it into products with economic value, even help reduce the cost of producing animal feed. Thank you SIG and PT Solusi Bangun Andalas. May you always be successful and continue to care for us the community," said Ikhsan.