Indonesia: the five best green industrial estates revealed

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Aimed to increase the development of industrial growth, industrial estates are seen to be on the rise. However, concerns on environmental and social impacts have emerged for new land openings. Land clearing is feared to change the natural structure of the ecosystem, while environmental impacts increases the concern during which an industrial area begins its operations such as downgrading the quality of air, water and other pollutant material from the waste of manufacturing processes.

Green Industrial estates

Issues resulting from environmental damage have indirectly encouraged activists to urge industrial players to implement the principles of sustainable business – giving way in becoming a “green industrial estate”. An eco-friendly / green Industrial estate is defined as the community of manufacturing and service businesses seeking enhanced environmental and economic performance through collaboration in managing environmental and social related issues.

In hopes of creating a greener ecosystem, some ASEAN countries have formed green initiative projects to maximize the industrial player’s progression towards a more sustainable industrial estate. Indonesia’s ‘green certification’ approach is named PROPER, a government program aiming to encourage industrial players to comply with regulations through incentives and push companies to implement clean production within their estate.

Top five green industrial estates in Indonesia

In a recent study conducted by Asia-focused corporate strategy consulting firm, Solidiance, all 233 existing industrial estates in Indonesia were mapped and analyzed using international best practices as a benchmark. The report further assesses the industrial estates using its own framework by integrating three core pillars – economic, social, and environmental – to conclude Indonesia’s best 5 Green Industrial Estates, which are:

  • East Jakarta Industrial Park

By practicing waste water treatment, EJIP was accredited for having the ‘best performance in environment management’ by the Ministry of Industry in 2013.

  • Jababeka Industrial Estate

Jababeka’s major green practices include the implementation of water treatment plant, sustainable power plant, and retrologistics.

  • Kota Bukit Indah Industrial City

Waste water treatment plant, pollution control (Air and Noise), a city forest within the estate, waste management, and lighting protection are the sustainability measures Kota Bukit Indah has implemented.

  • MM2100 Industrial Town

By improving waste water treatment and laboratory facility for environmental audit, MM2100 Industrial Town was awarded a green certificate from PROPER Indonesia for two consecutive years.

  • Suryacipta City of Industry

One of the few estates with international standards on waste water management, Suryacipta City of Industry was awarded a BLUE Rating from The Ministry of Environment for the period of 2010-2011.

The implementation of green initiatives may cause to be fairly beneficial for industrial estates. According to Solidiance’s report, green industrial estates receive higher return on investment in the long run through less energy usage and water operational costs. By creating a sustainable system, estates not only benefit themselves but also elevate the quality of life for the local community. ( – NA)

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