Take a Look! A Series of Badak LNG's Actions in Protecting the Environment
Jakarta, CNBC Indonesia - PT Badak NGL or Badak LNG continues to prioritise environmental management in its operations. This aligns with the government’s efforts to encourage all corporations to emphasise Environmental, Social, and Governance (ESG) practices.
Manager of CSR and Relations at Badak LNG, Putra Peni Luhur Wibowo, explained that the company has created social innovations that deliver impacts on the surrounding environment, both socially and economically.
For example, reducing the environmental impact from company operational activities and enhancing economic independence for communities around the operational areas, thereby creating a stable supporting ecosystem for the company’s business sustainability.
Nevertheless, the company also considers risk mitigation and social licence to operate. As a company managing strategic resources, support from local communities is crucial.
“Social innovation programmes that address real issues (such as waste management or food independence) strengthen harmonious relations between the company and residents, thereby minimising the risk of social conflicts,” he said when contacted by CNBC Indonesia on Wednesday (22/4/2026).
In addition, Putra explained that Badak LNG also possesses capable technical resources and expert personnel. Another driving factor is the desire to replicate or transfer industrial technology to a community scale.
Thus, the implementation of social innovations represents Badak LNG’s tangible contribution to achieving global SDGs targets. Social innovations often arise from the company’s efforts to manage environmental aspects more efficiently.
By involving communities in the circular economy chain (for example, processing waste into useful products), Badak LNG can resolve internal environmental issues while empowering residents.
Still related to the social and environmental sectors, Badak LNG also has a community empowerment programme called Lestari Bahari (Integrated and Independent Successful Economic Granary Based on Maritime Resources). This programme serves as a means to process small fish like anchovies into economically valuable products.
In practice, this programme utilises drying technology that can operate in various weather conditions to extend the shelf life of fish. Additionally, fish waste is processed into animal feed, thereby adding value and reducing environmental impacts in coastal areas.
The Lestari Bahari programme also introduces the SOPAN TERI innovation (Integrated Optimisation System for Drying and Storage), a boiling stove and drying container whose operation adopts principles from one of the processes in the LNG production unit, namely the Economizer principle (utilisation of waste gas heat) in the steam supply unit (boiler) at the Badak LNG Plant.
“The concept of utilising waste gas heat is applied to the SOPAN TERI Fish Drying Device, where the residual heat from the boiling stove’s combustion is channelled into the drying container to dry the fish. This innovation applies simple technology and materials that are easily obtainable,” Putra explained.
The application of technology through the SOPAN TERI innovation is easily implemented by the community. This innovation has also received a patent from the Ministry of Law of the Republic of Indonesia titled “Fish Drying Device Utilising Hot Air from Boiling Stove” with number IDS000011421, and is part of various other CSR innovation patent achievements.
Furthermore, Badak LNG consistently intensifies energy efficiency. One manifestation is through the Boiler Steam Load Optimisation Programme Based on Digital Innovation, which can save energy by 59,595 gigajoules (GJ) at Badak LNG.
From the water efficiency side, Badak LNG has the CLAS Method Programme (Closed Loop Amine Sump) in Purification Unit Train H, which can reduce water usage by 180 cubic metres. Next, the company also has the Flare Gas Emission Reduction Programme Through Low Emission Operational Strategy During LNG Loading at Badak LNG Loading Dock, which can reduce emissions by 49,634 tonnes of CO2 equivalent.
Thanks to these programmes, Badak LNG received the PROPER Gold award in 2025 from the Ministry of Environment for its dedication and commitment to sustainable environmental governance. This achievement stems from efforts in managing the living environment in both operational aspects and for the surrounding community environment.
The award was handed over directly by the Minister of Environment (BPLH)/Head of the Environment Management Agency (BPLH) Hanif Faisol Nurofiq to Badak LNG representatives at the PROPER Environmental Award event at Taman Mini Indonesia Indah (TMII), Jakarta, on 7 April 2026. The PROPER Environmental Award is an annual event that has been running for three decades with the aim of increasing company compliance with environmental regulations.
Regarding this, Putra stated that to achieve the Gold ranking, Badak LNG cannot merely rely on compliance or charitable CSR. Social innovation is an absolute requirement that demonstrates the company’s ability to create unique solutions to environmental and social problems sustainably.
“Management’s commitment to environmental management and community empowerment exceeds the required compliance (Leadership and the role of top management in building commitment to prioritise PROPER). The PROPER award is included in the company’s KPIs,” he explained.
From there, Badak LNG consistently conducts social mapping and develops programmes according to community needs along with guidance so that the programmes are on target. In addition, there is a culture of innovation across all work units, involvement of all work units, communities, and other stakeholders in implementing flagship programmes.