IMIP Positions ESG as Business Strategy to Maintain Global Competitiveness
PT Indonesia Morowali Industrial Park (IMIP) is positioning environmental, social, and governance (ESG) criteria as a business strategy to strengthen the competitiveness of the nickel downstream industry amidst increasingly stringent global market demands for sustainable business practices. This step is considered crucial to ensure that Indonesia’s downstream products remain competitive and accepted in the global industrial supply chain, particularly in the electric vehicle sector.
IMIP’s Deputy Operational Director, Yulius Susanto, stated that the implementation of ESG within the integrated industrial estate is not merely about fulfilling regulatory obligations, but has become the company’s policy direction for running operations and building stakeholder trust.
“Since 2024, IMIP has implemented an ESG framework as a tangible commitment to transparent, responsible, and safe governance standards. ESG is not just about compliance, but a strategic direction for all departments and tenants in building public trust,” Yulius said in a statement on Monday (27/7/2026).
According to him, the strategy is applied comprehensively through the establishment of an ESG committee, an ESG office, and ESG teams within each tenant. The entire implementation is carried out using an ESG management system based on a plan-do-check-act (PDCA) cycle, which serves as the reference for the company’s ESG roadmap until 2030.
As a nickel-based industrial area spanning approximately 4,000 hectares that integrates stainless steel, carbon steel, and electric vehicle battery material industries, IMIP applies an integrated industrial concept allowing waste from one production process to be utilised as raw material for another. This integration is part of implementing a circular economy that encourages resource efficiency while reducing emissions.
In the energy sector, IMIP is accelerating the transition to cleaner energy through the electrification of operational vehicles and the development of new and renewable energy. By the end of 2025, the industrial park had operated 502 electric vehicles, including dump trucks and heavy equipment. In May 2026, the company added 207 electric buses for employee transportation.
Additionally, IMIP is constructing a solar power plant with a capacity of 200 megawatt peak (MWp), targeted to operate by 2027. The company is also developing the utilisation of waste heat from power plants, wind energy, biomass, and energy storage systems as part of its decarbonisation strategy.
Head of the Environmental Department of PT IMIP, Yundi Sobur, noted that emission reduction efforts are also carried out through raw material supply chain management. “IMIP sets qualifications for the procurement of recycled steel (scrap steel) to suppress carbon emissions. These efforts include utilising battery energy storage systems, belt conveyors, slurry pipelines, and developing environmentally friendly energy sources,” Yundi said.
In the environmental field, IMIP operates wastewater treatment plants at both the estate and tenant levels. The system is supported by a continuous wastewater monitoring system integrated with the Ministry of Environment’s platform, enabling transparent and real-time monitoring of wastewater quality.
From January to May 2026, IMIP recorded the utilisation of organic and inorganic waste reaching 30.8 tonnes, or about 5.6% of the total 549 tonnes of waste generated. Of this amount, 74.68% was organic waste, 10.26% inorganic waste, and 15.06% residue.
ESG implementation is also manifested through various social programmes for communities surrounding the industrial area. These programmes include free healthcare services, blood donations up to four times a year, fire prevention education, household electrical installation safety training, and the provision of emergency response facilities for villages around the area.
“We provide free fire extinguishers at village offices, as well as fire engines and ambulance services to support rapid response in the event of a disaster,” said Head of Department OHS PT IMIP, Johny Semuel.
The strengthening of ESG has become increasingly strategic with the implementation of the Carbon Border Adjustment Mechanism (CBAM) by the European Union since January 2026. The policy requires industries entering the European market to meet stricter standards regarding carbon emissions, the environment, human rights, and supply chain traceability.
To address these challenges, IMIP prepares ESG reporting based on various international standards, including the Global Reporting Initiative (GRI), International Sustainability Standards Board (ISSB), Responsible Minerals Initiative (RMI), OECD Due Diligence Guidance, ISO 14064, ISO 14067, ISO 50001, as well as the principles of the United Nations and the International Labour Organization (ILO). The company is also developing a Responsible Supply Chain Due Diligence System to strengthen the traceability system across the entire value chain.
Yulius stated that the transformation towards a low-carbon industry indeed requires significant investment and operational adjustments. However, he noted that this step is a long-term investment to maintain business sustainability while enhancing the competitiveness of Indonesia’s downstream products.
“By 2030, we are targeting a resilient, competitive society within a sustainable social and environmental ecosystem,” he said.
Through the strengthening of ESG governance, IMIP seeks to ensure that nickel downstreaming not only creates added value for the national industry but also meets sustainability standards, which have now become a primary requirement in the global supply chain. With this approach, ESG is no longer positioned as a compliance obligation, but rather as a business strategy that determines the sustainability and competitiveness of Indonesian industry in the international market.