IKN Development With Sustainable Concept, SIG: We Are Ready To Fulfill

The Central Government Core Area (KIPP) in the capital city of Nusantara (IKN) which was also built using green cement products from PT Semen Indonesia (Persero) Tbk (SIG). BETWEEN/HO-SIG

JAKARTA - The sustainable concept is chosen and will be realized by the government in the capital city of Nusantara, Penajam Paser Utara, East Kalimantan. For this concept, the President Director of PT Semen Indonesia (Persero) Tbk (SIG) Donny Arsal stated that his party is ready to meet the needs of the concept.

"The success of IKN as a sustainable city will serve as a model for other regions in Indonesia to also carry out environmentally friendly development," he said in an official statement, Jakarta, quoted from ANTARA, Saturday, June 15.

SIG together with PT Bina Karya (Persero) have just initiated building materials solutions, including cement-based products, green cement, to cement derivative products and building materials that will be used to support IKN development projects until 2045.

In addition to supplying green cement and other sustainable solutions, he continued, the synergy is also targeted to increase capacity utilization and existing resources to support supply chain management according to IKN development needs.

The 'oversupply condition' which is a challenge for the cement industry is not only a pressure, but also an opportunity. SIG also has the company's real strategies and steps to capture and create growth opportunities through market and price management strategies, product diversification, production and distribution network optimization, application of sustainability principles, and building strategic synergies and partnerships to build a sustainable business ecosystem," said Donny.

Until 2045, the IKN project is also expected to be a driving force for industrial capacity absorption with various building materials needs such as cement, concrete, aggregates and sand.

He revealed that SIG has an extensive advantage of production and distribution networks, as well as diversification of low-carbon products to meet various development needs in various parts of Indonesia.

In particular, GIS is stated to have a solution to overcome soft soil conditions to be more efficient in using cement through soil stabilization which is one of the realizations of cooperation with Taiheiyo Cement Corporation (TCC) for the development of sustainable solutions.

The synergy is targeted to be the beginning of the establishment of a business ecosystem to ensure the realization of sustainable development in Indonesia, as well as channeling production capacity in the midst of oversupply conditions in the cement industry.

"TCC really appreciates the collaboration with GIS since 2021. We want to collaborate with GIS to provide environmentally friendly products and solutions such as green products, technology stabilization soup, and other high-performance building materials to support IKN development projects with technology and experience from TCC and SIG," said TCC Senior Executive Officer & Senior General Manager of International Business Division Shinji Fukami.