Jakarta. Thai-owned cement producer SCG reaffirmed its commitment to back Indonesia’s goal of achieving a golden era by 2045 by implementing green innovations at its local operations.

The world has entered a new era of more stringent environmental regulations. The European Union (EU) has the so-called carbon border adjustment mechanism (CBAM), which will impose a carbon tax on goods based on the emissions associated with production. Indonesia, too, is accelerating its energy transition as it aims to become one of the world’s largest economies by its centennial in 2045. Indonesia also aims to reduce emission intensity by 93.5 percent by the same year, enabling the country to reach its net-zero emission target by 2060 or sooner.

Against this backdrop, SCG remains committed to bridging global environmental, social, and governance (ESG) principles with Indonesia’s green innovation priorities. The company is also pushing the public-private-people-partnership (PPPP).

“Our commitment to be Indonesia’s development partner is based on our goal to have a business that is based on inclusive green growth. We want to make sure that all of our sustainability initiatives can be accessed by our stakeholders, including the government, business partners, and communities,” SCG Indonesia’s country director Warit Jintanawan said in a statement.

“By aligning global best practices with concrete implementation in Indonesia, SCG ensures that green transition innovations deliver tangible, measurable, and inclusive socio-economic impacts,” Jintanawan said.

The company has a Net Zero SCG Roadmap, which prioritizes energy efficiency and transition by exploring advanced technologies to improve energy efficiency and increase the proportion of renewable energy. To date, SCG has launched a refuse-derived fuel (RDF) facility in Sukabumi, which transforms waste into a valuable renewable alternative fuel. This enables SCG to produce low-carbon cement.

SCG’s business unit FajarPaper has also been using 100-percent recycled paper, thus eliminating the use of virgin pulp. There are also some inclusive human capital programs, including SCG MENTARI and community-based environmental education initiatives. SCG plans to allocate further investment to advance Indonesia's waste-to-value system and circular economy.

Regionally, SCG received an A rating in the construction materials industry from Morgan Stanley Capital International (MSCI), a leading global stock index provider. The Green Product Council Indonesia (GPCI) has also granted green label certificates to eight of SCG’s building materials. This certification reflects the company’s commitment to transferring its regional knowledge and bringing green innovations to Indonesia.

To further promote PPPP, SCG is planning to host the ESG Symposium Indonesia on Dec. 2. The forum is set to take place at Jakarta’s Ritz Carlton. The symposium will embrace the theme “Decarbonizing for Our Sustainable Tomorrow”. The conference will focus on how stakeholders, be it the public sector, businesses or communities, can drive greater innovation in circularity.