INTP:IJ Rp. 13,275 altimage -0.93%
05-Mar-2021 16:14
INTP:IJ Rp. 13275 altimage -0.93%
05-Mar-2021 16:14

Environmental Sustainability


Indocement's policies and commitments in environmental conservation are set forth in the company's policies signed by the President Director of Indocement. These policies include the following:
  1. Real efforts to conserve natural resources;
  2. Conserving biodiversity;
  3. Conducting energy conservation;
  4. Preventing environmental pollution through the continuous improvement of its activities;

Target and Activity Plan

In 2017, Indocement had several targets and plans for helping the environment:
  1. Reducing the average dust emissions out of the Company's factories; and
  2. Reducing sound noise levels caused by the Company's conveyors.

Reducing Dust Emissions

In 2017, Indocement replaced the Electrostatic Precipitator ("EP") with a Bag Filter in Plant 10. The replacement was an Indocement initiative to reduce dust emissions coming out of the Company's factories. This was in line with the principle set out in HeidelbergCement Sustainability Commitment 2030 to reduce its environmental footprint.

As a result, EP technology has been able to reduce the average dust emissions 53.7 mg / Nm³, which is below the emission standards (BME) as set forth in Appendix 1 PERMENLHK No. P.19/MENLHK/SETJEN/KUM.1/2/2017 on Emission Quality Standards for cement industry and / or activities of 70 mg / Nm³. However, the Company decided to replace the EP with a Bag Filter with the average dust emission of 9.3 mg / Nm³ resulting in dust emission reductions of 82.6% compared to the EP.

The total cost incurred by the Company for the replacement of Bag Filter for Plant 10 amounted to Rp84,5 billion. Currently, in 4 Indocement factories, Plant 4, Plant 9, Plant 10, and Plant 14 are already using Bag Filters. The Company is committed to substituting the EP with Bag Filters at all of its factories by the end of 2022.

Reducing Sound Noise Levels

The Company operates conveyors that pass through the neighborhoods. In 2017, the Company replaced 1,585 Rollers Belt Conveyors with Low-Noise Rollers Belt Conveyor.

Previously, the Rollers Belt Conveyor operated by the Company resulted in an average noise level of 51 dB, well below the standard noise level determined by the Ministry of Environment in their Decree No. KEP-48/MENLH/11/1996 regarding Noise Standards at 55 dB (A) for housing and residential areas, and 70 dB (A) for industrial areas.

Replacement rollers are used along the belt conveyor line from quarry D to the factory, for a length of 4.6 kilometers. After replacing with low-noise conveyor belts, the noise levels could be reduced to an average of only 48 dB.

The main material for low-noise conveyor belts has an ultra high molecure weight that is able to work consistently in high temperatures but has a plastic-like elasticity, smoothing the friction between the rollers and the conveyor belt.

Over the next two years, Indocement is also planning to use low-noise conveyor belts for Hambalang's quarry conveyor belt line to the factory over a distance of nine kilometers.

Environmentally sound production process
Indocement is well aware that the business activities carried out by the Company are in direct contact with the environment. To that end, the Company is paying enormous attention to environmental issues.

The Company believes that the environment is one of the main factors in supporting the business continuity of the Company. Therefore, in every business activity, the Company always ensures that its business activities do not have a negative impact on the environment.

In relation to production activities, the Company has standardized standards for the production processes,as follows: 
1. The use of Environmentally Friendly and Recyclable Energy and Materials, 
Cement Sustainability Initiative (CSI) is Indocement’s guide in maintaining a balance between its production and the nature conservation. The Company has developed environmentally friendly products using alternative fuels.

Through its Blended Cement Project, Indocement has reduced CO2 emissions by producing environmentally friendly cement. Indocement uses alternative materials to reduce the clinker content in the production process. The alternative Toxic and Hazardous Waste or Non-Toxic and Hazardous Waste (B3/non-B3) materials used is from Indocement or outside industries. The waste types include: iron slag, copper slag, wastewater, treatment sludge, grinding sludge and bottom ash.

In addition, the Company utilizes alternative biomass fuels in an effort to reduce CO2 emissions. These alternative fuels include palm shells and sawdust that are considered CO2-neutral. The use of biomass as alternative fuel has been adapted to the CDM framework under the Kyoto Protocol.

2. Waste Processing System
Indocement’s waste management, internally and externally, is carried out by applying the 4R principle (Reduce, Reuse, Recycle, Recovery). This waste management is important to ensure there is no negative impact on the environment, and is carried out in accordance with of the 2010 Minister of Environment Decree No. 231. The management is monitored by the respective General Managers, who are responsible directly to the Technical Director.

The waste management process observes the physical natures of waste, whether solid or liquid, and its B3 and non-B3 content. Unmanageable waste is managed by licensed third parties through bidding processes. The transportation process for B3 and non-B3 waste, and any security matters, are the responsibility of the third parties, in accordance with applicable regulations. Indocement guarantees there is no B3 leakage or spillage that could potentially endanger the environment.

3. Environmental Grievance Mechanism
Communities surrounding the factories can convey any environmental complaints caused by Indocement through bipartite meetings between the Company and village coordinators that are held at least every two months for each village.

Sustainable Environmental CSR Activity

Indocement has a number of activities related to the environment including:

1. Quarry Life Awards – Award for Biodiversity

The Quarry Life Awards (QLA) is a biennial international scientific and educational contest introduced by HeidelbergCement Group in 2012. QLA is a media to educate about biodiversity to the public with the aim of improving biodiversity knowledge, and the mining sites’ value and contribution to further improvement. QLA was the first scientific biodiversity study competition in Indonesia.

In line with its two-yearly schedule, the last QLA was held in 2016 at the Citeureup Factory Complex. The next QLA will be held in 2018 at theTarjun Factory Complex.

2. Kampung Ramah Lingkungan 

Kampung Ramah Lingkungan (Eco-Friendly Village / EFV) is a program initiated by environmental agencies at city / county level. EFV are places where people make concrete efforts and actions in the protection and management of the environment in a measurable and sustainable manner.

The objective of EFV is to encourage local governments, businesses and local communities to understand environmental issues and their impact, and to take concrete mitigation actions by proactively contributing to environmental protection and management efforts.

The coverage of Kampung Ramah Lingkungan, as follows: 

  1. Control of drought, flood and landslide through reforestation activities, waste management and the making of biopore holes;
  2.Providing waste banks and recycled waste creations
  3. Providing verticulture plants by making use of home garden yards;
  4. Environmental education for community members.

In 2017 the EFV program was run continuously in the partner villages of Puspanegara and Citeureup in the Bogor and Randakari sub-districts in Cilegon regency.

The impact of these activities on Indocement's partner villages saw:
  1. Villages becoming cleaner as household waste is well managed;
  2. Increased availability of water in villages / towns;
  3. Increased community food security;
  4. Changes in people's behavior and lifestyles, becoming more concerned about environmental sustainability.

3. Kampung Iklim Program 
Kampung Iklim Program (Climate Village Program / Proklim) is a program promoted by the Ministry of the Environment and Forestry ("KLHK") in the communities through the village governments, aimed at preventing any drasticy impact of climate change, such as hunger, drought, and water shortage. For their implementation, seven Indocement partner villages have been awarded with Proklim-related awards from KLHK.

The activities carried out are adapting to, and mitigating climate change. The adapting activities carried out were as follows:
  1. Counseling on Healthy Living Pattern (PHBS);
  2. Implementation of food security improvement program;
  3. Control of drought and flood (biopores, retention basin, and infiltration wells).

Furthermore mitigating activities undertaken were as follows:
  1. Household waste management;
  2. Use of renewable energy (biogas and solar cells);
  3. Use of organic fertilizer.

The impact of  implementation of the Proklim Program was as follows:
  1. The village or towns are cleaner as the waste is well managed;
  2. Increased availability of water;
  3. Increased food security, especially vegetables;
  4. Changes in behavior / lifestyle of people who are more concerned about environmental sustainability.

4. Kampung Inspirasi Cilengkrang
Kampung Inspirasi Cilengkrang was inaugurated by the Ministry of the Environment and Forestry continuing a comparative study in other regions in Indonesia. This activity was based on the Indocement program of giving understanding to the local people to care about the environment by managing household waste so it has a value, such as in the production of compost, and various handicraft. In addition, visits from other regions can increase the income of the Kampung Cilengkrang community through their efforts to provide various items, such as consumables, training, souvenirs, and others. The program developed in 2017 took the form of an environmental tourism program.

5. Adiwiyata School Program
Adiwiyata school is a joint program with the Ministry of National Education and the Ministry of the Environment and Forestry that began in 1996. This program focuses on the development and implementation of environmental education. The purpose of this program is to create a school community, especially students who care about the environment and culture, as well as supporting and realizing human resources with a national character for economic, social, and environment development to achieve sustainable development in the regions. Implementation of Adiwiyata Program has been demonstrated through planting trees in the schools, utilizing the economic value of planting fruits and vegetables, using rain through biopore holes and infiltration wells, establishing waste banks, as well as managing organic waste to become compost with economic value.

In 2017 the sekolah adiwiyata data showed:
Number of Indocement Schools Receiving Adiwiyata status in 2017
  Districts: 16
  Provinces: 7
  National: 4

The impact of the Adiwiyata program:
  1. Establishes the character of the school community in its effort to maintain and preserve the surrounding environment in a sustainable manner;
  2. Efficiency of electricity and water consumption;
  3. The creation of a clean, healthy and green school environment.

6. Tegal Panjang, Living Laboratory at Quarry D Ex-Mining Area 
Indocement has an obligation to conduct post-mining reclamation. One ex-mining area that has been reclaimed is the 60-hectare Quarry D in the Citeureup Factory. Reclamation has been carried out by planting hardwood trees such as Mahogany and Teak. Within the 60 hectares, 12 hectares has been set aside as a cultivation estate and planted with a variety of horticulture, herbs and ornamental plants.

Activities undertaken during 2017 included:
  1. Maintenance of all plants in the Quarry D reclamation area;
  2. Philodendron cultivation by involving village farmers in the community empowerment programs;
  3. Developing mushroom cultivation to increase farmer's income.

Impact of activities already implemented:
  1. Plants in the Quarry D reclaimed land are well-maintained;
  2. Increase in farmer's income from the philodendron cultivation program and mushroom cultivation.

7. Indocement Wildlife Education Center (IWEC)

In Tarjun Factory, Indocement has established an Indocement Wildlife Education Center (IWEC), a training and rescue center for endangered species endemic of South Kalimantan. IWEC is an effort to prevent the extinction of endangered Bekantan, Owa-Owa and Rusa Sambar, whose habitats are gradually being threatened. IWEC is a joint cooperation among Indocement, Kotabaru Regency for Conservation and Natural Resources (BKSDA), Bogor Agriculture University (IPB) and Kalaweit Organization.

In 2017 the Company ran its IWEC program by continuing the breeding program for endangered animals such as proboscis monkeys, owa-owa and sambar deer. The population of animals in 2017 reached:
  - Six proboscis monkeys;
  - Seven Owa -owa;
  - Eighteen Sambar deer.

8. Mangrove Conservation at Langadai Village, Tarjun

The Mangrove Forest in Langadai Village is threatened because the forest is being cut down to provide firewood or stripped for mining by the surrounding community, having a negative impact to the community.

Indocement, with the community, took the initiative to restore the Mangrove Forest areas by reforesting / replanting Mangrove trees. In 2014 a Mangrove Forest Tourism Area was established in Langadai Village to provide added value from the conservation of Mangrove Forest.

Langadai villagers were also given skills training in the management of forest tourism, and how the existence of forest tourism also opens up new business opportunities such as processing Mangrove fruit into syrup, or dodol, and Jukung rental business to get around the forest and others.

Costs incurred
Indocement has an absolute commitment to environmental management and conservation. One manifestation of this commitment was the size of the budget Indocement allocated for its environmental activities. In 2017, Indocement spent Rp86,519,199,575 to cover all its activities related to the environment.

Environmental Certification 
Indocement is well aware that its business activities are closely related to the environment. Therefore, in order to ensure that the Company 's business activities do not adversely affect the environment, the Company complements its operations with a range of regular internationally recognized standardized environmental audited.

In 2017, Indocement's environmental certification included:

Indocement is the first and only cement manufacturer in Indonesia to receive the Green Industry Certificate from the Ministry of Industry of the Republic of Indonesia.

Furthermore, in 2017 Indocement received the following environmental awards:

Indocement, a producer of Semen Tiga Roda Cement and Semen Rajawali