For Advertorial: Indocement ----- to be published on August 4, 2005<\/p>\n
Indocement translates vision of sustainable cement initiative into reality
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Cement is an essential material in today's society. As a major
\nconstituent of concrete, cement forms a fundamental element of
\nhousing and infrastructure project, including the construction of
\nroads, bridges, airports, seaports, water treatment facilities,
\nschools, hospitals, etc.<\/p>\n
The revival of housing and infrastructure development projects
\nin Indonesia over the last several years has led to an increase
\nin demand for this important product and has thus benefited
\ncement producers in the country. Amid the good prospects for the
\ncement industry, however, cement producers are also facing the
\nfact that the rising global population places increasing pressure
\non essential natural resources, such as land and energy. This
\nmeans cement producers with long-term visions of sustainable
\ndevelopment must find ways to use these resources more
\nefficiently.<\/p>\n
Major cement companies have developed a long-term vision of
\nsustainable development and are committed to implementing
\nsustainable development in a proper manner. Among them is PT
\nIndocement Tunggal Prakarsa Tbk, which since 2001 has been
\ncontrolled by HeidelbergCement of Germany.<\/p>\n
Established in 1975, Indocement has been widely recognized as
\na socially and environmentally responsible cement company in
\nIndonesia thanks to its strong commitment to the idea of
\nsustainable development.<\/p>\n
As a member of the World Business Council for Sustainable
\nDevelopment (WBCSD) and one of the signatories of the Cement
\nSustainability Initiative, HeidelbergCement Group has led
\nIndocement to operate based on three pillars of sustainable
\ndevelopment: economic growth, ecological balance and social
\nprogress.<\/p>\n
Many property projects were halted due to the economic crisis
\nin the mid-1997, painting a bleak picture for cement producers,
\nincluding Indocement. Many companies had huge debts due to the
\nweakening of the rupiah against the US dollar. However, the bad
\nnews for cement producers is a thing of the past, particularly
\nfor Indocement. The company has refocused its activities on the
\ncore business of producing cement and has taken other efficiency
\nmeasures, helping the company to regain its financial strength.<\/p>\n
\"Since 2004, Indocement has been financially sound. Our
\naverage sales growth rate is 9 percent per annum and we control
\nabout 30 percent of the market,\" said Indocement president
\ndirector Daniel Lavalle.<\/p>\n
While efforts to boost its business performance continue,
\nIndocement has been engaged in numerous projects related to
\nsocial and environmental issues under community development (CD)
\nor social corporate responsibility (CSR) programs, part of its
\ncommitment to be good corporate citizens.<\/p>\n
Currently, Indocement operates 12 plants, nine of which are
\nlocated in Citereup, Bogor, in West Java; two in Palimanan,
\nCirebon, also in West Java, and one in Tajun, Kotabaru, in South
\nKalimantan.<\/p>\n
For Indocement, living in harmony with the surrounding
\ncommunity is essential part of assuring the sustainability of
\nits business. Therefore, as part of its efforts to reduce the
\nsocial impact of the company's operations and improve the welfare
\nof local residents, the company provides job opportunities for
\nlocal residents. The company employs over 6,000 people, many of
\nthem from villages near where the plants are located.<\/p>\n
Daniel Lavalle said employee welfare received a great deal of
\nattention from management and was regularly updated and improved
\nfrom time to time.<\/p>\n
\"The year 2004, for instance, witnessed the revision of
\nIndocement's Collective Labor Agreement, with a strong focus on
\nethical issues,\" he said. \"This communication forum, which is
\nheld every two years, serves as a means of discussing employee
\nwelfare covering benefits and allowances,\" Daniel Lavalle.<\/p>\n
He said Indocement always made safety and health issues key
\npriorities, and did everything it could to provide a safe and
\nhealthy working environment. \"Indocement has been able to
\nminimize the number of accidents by employing rigorous
\noccupational health and safety standards in line with
\ninternational best practices,\" he said.<\/p>\n
Besides providing job opportunities, Indocement has also
\nundertaken a wide range of Community Development projects such as
\nbuilding roads, bridges, water distribution systems, schools and
\nmosques. Furthermore, Indocement is providing mobile health
\nservices and support education through training courses for local
\nresidents in areas, such as farming, duck or sheep breeding, the
\nproduction of handicrafts, etc.<\/p>\n
At Indocement, all Community Development (CD) projects are
\ndesigned based on the requirements from local communities, said
\nIndocement director Iwa Kartiwa. For example, small and medium
\nenterprises (SMEs) surrounding Indocement's plants in Citereup
\nwere in dire need of capital for their ventures and \"so we
\ncollaborated with bank BRI in launching a loan-lending program.
\nLocals can take advantage of loans with low interest rates\", he
\nsaid.<\/p>\n
Indocement also has scholarship programs that help children
\nfrom low-income families and outstanding students.<\/p>\n
In 2004, the company allocated some Rp 12 billion for
\nCommunity Development programs in several villages.<\/p>\n
Meanwhile, as an environmentally responsible company,
\nIndocement finds it essential to take concrete steps to protect
\nthe environment as part of its commitment to sustainable
\ndevelopment, both locally and globally.<\/p>\n
Local environments are sensitive to dust emissions that must
\nbe contained using state-of-the-art technology.<\/p>\n
With regard to emission reductions, Indocement has decided to
\nchange most of the filters on its kilns in order to improve their
\nperformance and comply with national and international
\nenvironmental standards. Furthermore, emission-monitoring
\nequipment is being installed on each individual kiln to
\ncontinuously monitor emissions, Daniel Lavalle said.<\/p>\n
CO2 emissions -- resulting from the combustion of fossil fuels
\nin the cement kilns and the de-carbonization of calcium carbonate
\ninherent in the process -- contribute to global CO2 emissions and
\nhave become a global issue due to their likely influence on
\nclimate change.<\/p>\n
The Kyoto Protocol has introduced new flexible mechanisms to
\nhelp curb the increase of CO2 emissions.<\/p>\n
Indocement has introduced such an initiative -- a Clean
\nDevelopment Mechanism (CDM) project -- and was the first
\nIndonesian company to do so. In this regard, Indocement uses
\nalternative fuels such as rice husks, palm kernels and sawdust to
\nreplace fossil fuels, while using various alternative materials
\nin the production process.<\/p>\n
The CDM project is now being implemented at all of the
\ncompany's factories.<\/p>\n
To implement the CDM project, Indocement signed an agreement
\non CO2 emissions reduction with the World Bank in Cologne,
\nGermany on June 9, 2004. Under the agreement, Indocement will
\ncollaborate with Prototype Carbon Fund (PCF), one of the World
\nBank's funding arms. This represents the first undertaking of its
\nkind in Indonesia, and one of the first in the cement industry
\nanywhere in the world.<\/p>\n
The use of alternative materials results in reduced
\nrequirements of clinker and hence a reduction in the consumption
\nof energy. The reduction of clinkers contributes directly to less
\ndecarbonation. But using alternative materials also means that
\nIndocement will be encouraged to use diversified materials taken
\nfrom natural resources and thus, this will further contribute to
\nsustainable national development. The project uses clean
\ntechnology that will have an adverse impact on safety and health
\nof the local community. In addition, with the job of collecting,
\nchoosing and transporting alternative fuels and materials needed,
\nthe project also means new job opportunities.<\/p>\n
Indocement's strong commitment to operate the company in a
\nresponsible and sustainable manner through Community Development
\n(CD) or Corporate Social Responsibility (CSR) programs has led
\nthe company to receive numerous awards. Among the most recent
\nawards that Indocement has received are the OHSAS 18001
\nCertification for the implementation of Occupational Health &
\nSafety Assessment Series in September 2004, the Superbrands Award
\n2003-2004 in October 2004 from UK-based Superbrands Organization
\nand the Green Rating for implementing environmental safety
\nmeasures that exceed the minimum statutory requirements from the
\nMinistry of Environment in October 2004. On July 21, Indocement
\nalso achieved the accreditation for laboratory testing (SNI 19-
\n17025-2000) from National Accreditation Committee of Indonesia.<\/p>\n
The numerous awards Indocement has earned are, surely, only
\npart of the evidence of the company's strong commitment to a
\nsustainable cement industry. Thus, Indocement translates long-
\nterm vision of sustainable development into reality.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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