Paradise Indonesia Embroiders ESG, Weaving Sustainable Expansion
The property industry stands beneath a heavy sky. The market slowdown creeps slowly, construction costs climb without pause, while purchasing power still seeks its full breath. Pressures come in layers, testing resilience as well as the direction of steps. ESG (Environmental, Social, Governance) practices serve as a marker of the times, a new benchmark that not only measures how high buildings are erected but also how far they lean towards sustainability.
However, ESG implementation still faces complex realities due to substantial initial investments, an immature ecosystem readiness, and regulations that are not yet fully solid. Nevertheless, property companies are stepping firmly to practise ESG.
Herry Ginanjar, an ESG practitioner and observer at Prasetiya Mulya Executive Learning Institute, said that ESG developments in Indonesia’s property sector have shown a positive direction in recent years, particularly in strengthening Good Corporate Governance (GCG) practices.
“Property companies in Indonesia, especially those listed on the capital market, are starting to be driven to be more transparent and structured in disclosing their non-financial performance, in line with pushes from regulators like the Financial Services Authority with POJK 51/2017,” Herry stated when contacted by SWA.co.id in Jakarta on Tuesday (14/4/2026).
He observed the adoption of global benchmarks, such as the Global Real Estate Sustainability Benchmark, by some property companies in Indonesia. “This reflects a shift from mere compliance towards governance that is more risk-based and long-term oriented,” Herry said.
ESG practices in Indonesia’s property sector, Herry continued, are still in the early stages and tend to be fragmented. For example, green building certifications developed by the Green Building Council Indonesia do show an increasing trend, although the numbers remain limited and dominated by large-scale or premium projects.
Regarding ESG practices in property issuers, Reza Priyambada, a capital market observer and Director at PT Reliance Sekuritas Indonesia Tbk (RELI), noted that property companies relatively attractively offer homes with green property concepts or eco-friendly properties that embrace environmental sustainability.
“For instance, they build houses or apartments that prioritise natural lighting, cross-ventilation, and rainwater harvesting systems, use solar panels to reduce carbon emissions, and carry out waste processing in the area to produce environmentally friendly waste emissions,” Reza explained.
Balancing Green Ambitions with Business Resilience.
In this landscape, industry players must not only be adaptive but strategic, balancing green ambitions with business resilience. Sustainability is no longer just discourse but an increasingly binding demand. ESG emerges as a fresh breath, bridging development ambitions with responsibilities towards the environment, people, and governance.
From an environmental perspective, buildings are one of the main contributors to energy consumption and emissions, so without efficiency, property could potentially become a burden. From a social perspective, property shapes lifestyles, ways of working, and human interactions. Meanwhile, from a governance perspective, long-term asset management demands high transparency and discipline.
ESG practices are not merely adding value but a foundation to keep property relevant, becoming a marker of sustainable business direction based on good governance and environmental preservation.
ESG Is Not a Complement, But a Determinant
Changing consumer behaviour increasingly underscores the urgency of ESG. Consumers are not just buying space but experiences. Healthy homes, vibrant commercial spaces, and integrated areas are now the new standard. In line with that, global tenants are becoming more selective, choosing properties with measurable sustainability commitments.
Reza said that green property concepts include providing green open spaces (RTH), pedestrian-friendly paths, and sports facilities (jogging tracks) as main selling points to fulfil the Social pillar. There are also those that facilitate residents with accessibility through Transit Oriented Development (TOD) concepts that bring homes closer to public transport, becoming a trend to reduce carbon footprints.
“This means property developers are increasingly aware of environmental issues, thus offering eco-friendly housing concepts and encouraging residents to also be aware of these issues. We see this as positive for future development,” Reza stated.
Therefore, ESG takes a strategic role, no longer a complement but a determinant of whether a property stops as just a building or grows into a valuable and sustainable destination.
Paradise Indonesia: Translating ESG into Business Strategy
Building on this, PT Indonesian Paradise Property Tbk (INPP) or Paradise Indonesia is taking an aggressive approach to translate ESG into the company’s business strategy. This property company does not view ESG as an administrative obligation but as a foundation in building a portfolio linked to sustainability principles.
CEO & President Director of Indonesian Paradise Property, Anthony Prabowo Susilo, said that property development is seen as a long-term business, so sustainability becomes an important foundation to maintain success and business continuity in the future. “Paradise Indonesia is committed to continuing to drive sustainable growth across all company lines,” he said.
In the medium term, for example, the management of this property issuer is expanding its mixed-use property portfolio that is integrated with the surrounding environment, providing better access for the community, and creating a sustainable lifestyle ecosystem.
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