Indonesia’s green industrial estates and best practices

Indonesia’s green industrial estates and best practices

Indonesia’s economic growth in industrial estates has seen a positive trend in the last five years despite the economic turmoil that happened in recent times.

However, concerns focused on environmental and social impacts are seen as the consequences of the new land openings for the estates, which urges industrial players to implement the principles of sustainable business as an indicator of business success as well as positioning social and environmental variables for realizing sustainable business practices.

In this white paper entitled “Indonesia’s Green Industrial Estates & Best Practices”, Solidiance addresses an idea to bridge the above issue which still enables estates to keep growing economically without sacrificing environmental and social aspects.

This idea is expressed through examples of green initiatives within industrial estates in Indonesia which came up as a result from the analysis of Indonesia’s regulations for environment along with international best practices of sustainable industrial estates.

Solidiance first mapped all existing 233 industrial estates in Indonesia and further developed categories of assessment based on benchmarks in Asian and European countries which resulted in an approach that highlights and synchronizes the major functions of ‘3 sustainable pillars’ of industrial estates, consisting of economic growth, environment and social aspects.

To localise the scope, Solidiance used data from Indonesia’s green approach, KLH (PROPER), which narrowed the estates into 30+ shortlists. From the 30 shortlisted industries, Solidiance conducted more in-depth research to explore various initiatives on those three pillars.

The analysis finished with the 10 best estate initiatives. After conducting further research (interviews, desktop, media tracking and monitoring) on the 10 estates, Solidiance was able to narrow down Indonesia’s Best 5 Industrial Estates which have implemented excellent green initiatives and have successfully integrated the three pillars within their operations - which are highlighted in this white paper.

These initiatives are expected to give fresh insight and guidance for existing and new industrial players in shifting their business approach into a sustainable system.

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Supporting Organisations

ABB
Asia Plantation Capital
Diamond Energy
Basf
City Developments Ltd
DNV-GL
Geocycle
Sindicatum
Olam