Indonesia’s Green Industrial Estates & Best Practices by Solidiance

Solidiance mapped all 233 existing industrial estates in Indonesia, analyzed them using international best practices as a benchmark and their own framework that integrates three core pillars – economic, social, and environmental. The end result of the assessment is the Best 5 Green Industrial Estates which can act as guidelines for existing and new industrial players in shifting their business approach into a sustainable system.

Jakarta, Indonesia, November 25, 2015 --( Indonesia’s industrial estates have been seeing rising demands and investment due to stable economic growth over the last decade in the country. Market players not only position Indonesia as a primary investment destination in Asia, but also as a strategic manufacturing point. However, climate change and increasing sustainability awareness have triggered concerns on both environmental and social aspects within the industry, urging the establishment of what is called “Green Industrial Estates” across the globe, including in Indonesia.

To bridge the growing concern on the environment with regards to industrial estates, Solidiance produced a white paper entitled “Indonesia’s Green Industrial Estates & Best Practices” by applying a framework encapsulating 3 core aspects – environment, social, and economic. After screening over 233 industrial estates within the country, Solidiance nailed down Indonesia’s best five green industrial estates. The insight is aimed to give fresh insight and guidance for existing and new industrial players in shifting their business approach into a sustainable system.

Indonesia’s industrial estate towards green initiatives

There are more than 230 industrial estates that exist in Indonesia today with land size of 27,000 ha, of which 60% is located in West Java. The growth is set to go further with the rising demand of estates in the country.

Two best international green practices, Kalundborg Industrial Estate in Denmark & Kawasaki Zero Emission Industrial Park in Japan, are assessed and act as a benchmark in our study on Indonesian marketplace. The three pillars system consisting of environmental, social, and economic aspects, are derived to gauge and analyze the “sustainability” status in each Indonesian industrial estate.

All of the 233 existing industrial estates in Indonesia were assessed and eventually narrowed down to the following five best Green Industrial Estates in the country (sorted in alphabetical order):

· East Jakarta Industrial Park
· Jababeka Industrial Estate
· Kota Bukit Indah Industrial City
· MM2100 Industrial Town
· Suryacipta City of Industry

Conclusion and outlook

The development of Green Industrial Estate is still at the nascent stage in Indonesia.Government’s support through clearer regulation, enforcement, and funds are needed to make it easier for the industrial players to implement major eco-friendly changes. However, promising opportunities are visible in the longer term and meanwhile at this point, companies and/or investors can take into consideration some benefits of greening the industrial estates, i.e. higher return in the long run through less energy and water operational costs.
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