For Advertorial: Indocement ----- to be published on August 4,
For Advertorial: Indocement ----- to be published on August 4,
2005
Suggested titles:
Indocement translates vision of sustainable cement initiative
into reality
Indocement has strong commitment to sustainable development
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Cement is an essential material in today's society. As a major
constituent of concrete, cement forms a fundamental element of
housing and infrastructure project, including the construction of
roads, bridges, airports, seaports, water treatment facilities,
schools, hospitals, etc.
The revival of housing and infrastructure development projects
in Indonesia over the last several years has led to an increase
in demand for this important product and has thus benefited
cement producers in the country. Amid the good prospects for the
cement industry, however, cement producers are also facing the
fact that the rising global population places increasing pressure
on essential natural resources, such as land and energy. This
means cement producers with long-term visions of sustainable
development must find ways to use these resources more
efficiently.
Major cement companies have developed a long-term vision of
sustainable development and are committed to implementing
sustainable development in a proper manner. Among them is PT
Indocement Tunggal Prakarsa Tbk, which since 2001 has been
controlled by HeidelbergCement of Germany.
Established in 1975, Indocement has been widely recognized as
a socially and environmentally responsible cement company in
Indonesia thanks to its strong commitment to the idea of
sustainable development.
As a member of the World Business Council for Sustainable
Development (WBCSD) and one of the signatories of the Cement
Sustainability Initiative, HeidelbergCement Group has led
Indocement to operate based on three pillars of sustainable
development: economic growth, ecological balance and social
progress.
Many property projects were halted due to the economic crisis
in the mid-1977, painting a bleak picture for cement producers,
including Indocement. Many companies had huge debts due to the
weakening of the rupiah against the US dollar. However, the bad
news for cement producers is a thing of the past, particularly
for Indocement. The company has refocused its activities on the
core business of producing cement and has taken other efficiency
measures, helping the company to regain its financial strength.
"Since 2004, Indocement has been financially sound. Our
average sales growth rate is 9 percent per annum and we control
about 30 percent of the market," said Indocement president
director Daniel Lavalle.
While efforts to boost its business performance continue,
Indocement has been engaged in numerous projects related to
social and environmental issues under community development (CD)
or social corporate responsibility (CSR) programs, part of its
commitment to be good corporate citizens.
Currently, Indocement operates 12 plants, nine of which are
located in Citereup, Bogor, in West Java; two in Palimanan,
Cirebon, also in West Java, and one in Tajun, Kotabaru, in South
Kalimantan.
For Indocement, living in harmony with the surrounding
community is essential to assuring the sustainability of its
business. Therefore, as part of its efforts to reduce the social
impact of the company's operations and improve the welfare of
local residents, the company provides job opportunities for local
residents. The company employs over 6,000 people, many of them
from villages near where the plants are located.
Daniel Lavalle said employee welfare received a great deal of
attention from management and was regularly updated and improved.
"The year 2004, for instance, witnessed the revision of
Indocement's Collective Labor Agreement, with a strong focus on
ethical issues," he said. "This communication forum, which is
held every two years, serves as a means of discussing employee
welfare covering benefits and allowances."
He said Indocement always made safety and health issues key
priorities, and did everything it could to provide a safe and
healthy working environment. "Indocement has been able to
minimize the number of accidents by employing rigorous
occupational health and safety standards in line with
international best practices."
Besides providing job opportunities, Indocement has also
undertaken a wide range of Community Development projects such as
building roads, bridges, water distribution systems, schools and
mosques. Furthermore, Indocement is providing mobile health
services and training courses for the communities surrounding its
plants. These courses cover such topics as farming, duck or sheep
breeding, the production of handicrafts, etc.
At Indocement, all Community Development projects are designed
based on the requirements of local communities, said Indocement
director Iwa Kartiwa. For example, small and medium enterprises
(SMEs) surrounding Indocement's plants in Citereup were in dire
need of capital for their ventures, "so we collaborated with bank
BRI in launching a loan program. Locals can now take advantage of
loans with low interest rates", he said.
Indocement also has scholarship programs that help children
from low-income families and outstanding students.
In 2004, the company allocated some Rp 12 billion for
Community Development programs in several villages.
Meanwhile, as an environmentally responsible company,
Indocement finds it essential to take concrete steps to protect
the environment as part of its commitment to sustainable
development, both locally and globally.
Local environments are sensitive to dust emissions that must
be contained using state-of-the-art technology.
With regard to emission reductions, Indocement has decided to
change most of the filters on its kilns in order to improve their
performance and comply with national and international
environmental standards. Furthermore, emission monitoring
equipment is being installed on each individual kiln to
continuously monitor emissions, Daniel Lavalle said.
CO2 emissions -- resulting from the combustion of fossil fuels
in the cement kilns and the de-carbonization of calcium carbonate
inherent in the process -- contribute to global CO2 emissions and
have become a global issue due to their likely influence on
climate change.
The Kyoto Protocol has introduced new flexible mechanisms to
help curb CO2 emissions.
Indocement has introduced such an initiative -- a Clean
Development Mechanism (CDM) project -- and was the first
Indonesian company to do so. In this regard, Indocement uses
alternative fuels such as rice husks, palm kernels and sawdust to
replace fossil fuels, while using various alternative materials
in the production process.
The CDM project is now being implemented at all of the
company's factories.