Since its implementation in 2005, Environmental, Social, and Governance (ESG) have been widely utilized by companies that consider non-financial factors to have an influencing role in their business performance, and it has been adopted as a part of the process of identifying risks and growth opportunities. Now, business decisions are also influenced by their ESG factor, which adds to their initial use of gaining financial benefits.
In practice, the application of the ESG concept is tailored to the business nature of each company. The challenges of the manufacturing industry in implementing ESG are very large, due to their high-energy requirements and their existing accusations of being a significant source for pollution.
Most of the manufacturing industries are located on the island of Java and it is estimated that around 60-70% of energy sources generated by PLN during 2021 are generated from coal, which is a form of non-renewable energy and the greatest contributor to carbon emissions. The need for non-renewable energy will surely increase each year, if an imbalanced fulfillment from new and renewable energy sources (EBT) exists.
The Indonesian government has made various efforts in reducing carbon emissions, which include transitioning technology to solar energy (or the application of solar panels), and creating plans on implementing a carbon tax. Thus, the use of solar energy is now considered as one of the most important initial solutions to consider for numerous companies.
PT Suryacipta Swadaya (Suryacipta), as a developer and manager of industrial estates, recognizes their important responsibility in reducing carbon emissions as one of the company’s ESG implementations.
In 2021, Suryacipta demonstrated its commitment by signing an MoU with PT Xurya Daya Indonesia (Xurya), a renewable energy startup that provides Solar PV rental services in Indonesia. Suryacipta is also the first and only industrial estate to sign the Pledge Renewable Energy Commitment on the Indonesia-Germany Renewable Energy Day 2021 event.
Suryacipta and Xurya started their collaboration in 2022, by installing the Solar PV within their infrastructures and utilities throughout Suryacipta City of Industry, Karawang. The installation were located at the office building area The Manor and the commercial area The Promenade, as well as in Water Treatment Plant and Suryacipta’s Vocational School.
Eka Himawan, Managing Director of Xurya Daya Indonesia said, “This Solar PV installation is our pilot project that aims to encourage tenants in Suryacipta to start switching to renewable energy. This initiative is in line with Xurya and Suryacipta’s commitment to creating an industrial area that not only implements a smart system, but also adopts a smart environment, one of which can be implemented through the use of renewable energy based on solar power.
This activity will increase in capacity within the next 3 years and the company will continue to develop other methods to consistently encourage tenants to follow. Suryacipta and Xurya believe that “Leading by Example” can be the best way to convince tenants of Suryacipta City of Industry to participate in switching to a more environmentally friendly alternative.
Wilson Effendy, Vice President Director of Suryacipta says “The application of Solar PV at Suryacipta City of Industry in Karawang is a manifestation of Suryacipta in realizing an environmentally friendly area through the use of EBT”.
This Solar PV installation project is also a part of Suryacipta’s initiatives that is in line with the company’s 32nd anniversary on 26th February, 2022. We are committed to implementing ESG principles in our estates – both Karawang and Subang. Essentially, the company goes beyond providing the best for its tenants and clients, but aims to also create significant contributions to society and the environment. This initiative becomes in line with our company’s vision of “Building a Better Indonesia”, said Wilson.
In parallel, Subang Smartpolitan as a smart and environmentally friendly city, has been planned from the ground-up with to adopt a “Smart & Sustainable” concept that will certainly implement ESG through the use of technology in its various infrastructures. As a new city that integrates business, residential, education and entertainment activities, the application of ESG will become a part of everyday life in Subang Smartpolitan.