Indonesian Political, Business & Finance News

WTJJ Integrates ESG into the Water Infrastructure Sector

| | Source: REPUBLIKA Translated from Indonesian | Infrastructure
WTJJ Integrates ESG into the Water Infrastructure Sector
Image: REPUBLIKA

PT WIKA Tirta Jaya Jatiluhur (WTJJ) is promoting a business transformation based on environmental, social, and governance (ESG) principles to strengthen operational efficiency and expand funding access. This strategy is key amid the capital-intensive nature of the water sector and its sensitivity to financing risks.

WTJJ’s President Director, Rendy Ardiansyah, stated that ESG is now an integral part of the business strategy, not merely a reporting obligation. “ESG is not just about compliance, but how the company can adapt and grow. It is our differentiation strategy, as well as a financing gateway to open broader funding access,” said Rendy at the KESGI Forum 2026 at the Indonesia Stock Exchange on Monday (6/4/2026), based on a press release.

According to Rendy, implementing ESG helps strengthen the company’s risk profile in the eyes of investors and financial institutions. This is crucial for the water infrastructure sector, which requires substantial investments over long horizons.

The transformation begins internally through aligning the organisation’s vision and mindset. “We start with mental modelling. When the entire organisation shares the same vision, ESG can then be translated into credible value for investors,” said Rendy.

On the operational side, WTJJ is reducing energy costs, which are the largest component in managing drinking water supply systems (SPAM). The company has adopted variable speed drive technology on pumps to optimise electricity consumption in real time.

Additionally, WTJJ is beginning to utilise renewable energy and implement energy management systems to enhance cost efficiency. These steps impact emission reductions while strengthening business resilience.

This strategy is reflected in the funding structure. In 2025, WTJJ refinanced conventional loans into green funding worth Rp1.29 trillion.

The company’s sustainability performance is also evident from S&P Global’s assessment in February 2026, with an ESG score of 55. This achievement places WTJJ first in Indonesia and in the global top five for the water category.

WTJJ currently manages the KPBU SPAM Regional Jatiluhur I project with a capacity of 4,750 litres per second, serving DKI Jakarta, Bekasi City, Bekasi Regency, and Karawang Regency, covering around 2 million people.

Since operating in December 2024, this project has become a backbone for urban raw water supply and reduces dependence on groundwater by utilising surface water from the Jatiluhur Reservoir.

Rendy emphasised that investments in the water sector demand long-term commitment. “Investment is not just about funding schemes, but a long-term commitment to sustainable water,” said Rendy.

Moving forward, WTJJ will strengthen ESG integration to maintain efficiency, expand financing access, and enhance competitiveness in the water infrastructure business.

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