The rising trend of industrial estates in Indonesia coupled with a growing concern for environmental and social awareness have led industrial players in the adoption of green initiatives for their industrial estate. In the white paper, Solidiance mapped all 233 existing industrial estates in Indonesia, analyzes them using international best practices as a benchmark and our own framework that integrates three core pillars – economic, social, and environmental. The end result of assessment is the Best 5 Green Industrial Estates which can act as a guidelines for existing and new industrial players in shifting their business approach into a sustainable system. Although Indonesia’s industrial estates are still at a nascent stage, promising opportunities are visible in the marketplace.

1. Solidiance has produced this white paper for information purposes only. While every effort has been made to ensure the accuracy of the information and data
contained herein, Solidiance bears no responsibility for any possible errors and omissions. All information, views, and advice are given in good faith but without any
legal responsibility; the information contained should not be regarded as a substitute for legal and/or commercial advice. Copyright restrictions (including those of
third parties) are to be observed.
Indonesia’sG r e e n I n d u s t r i a l E s t a t e s & B e s t P r a c t i c e s
NOVEMBER 2015
solidiance

2. www.solidiance.com2
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Indonesia: current
Industrial estate,
trends, & environmental
background
Indonesia’s Green
Approach (PROPER) and
International Best
Practices
Conclusion
INFOGRAPHIC
AUTHORS
ABOUT US
CONTENT
Executive summary
3
Analysis : Indonesia’s 5 Best
Green Industrial Estates
14

3. 3www.solidiance.com
Executive
summary
Indonesia’s economic growth in industrial estates has seen a positive trend
in the last five years despite the economic turmoil that happened in recent
times. However, concerns focused on environmental and social impacts
are seen as the consequences of the new land openings for the estates,
which urges industrial players to implement the principles of sustainable
business as an indicator of business success as well as positioning social
and environmental variables for realizing sustainable business practices.
In this white paper entitled “Indonesia’s Green Industrial Estates & Best
Practices”, Solidiance addresses an idea to bridge the above issue which
still enables estates to keep growing economically without sacrificing
environmental and social aspects. This idea is expressed through
examples of green initiatives within industrial estates in Indonesia
which came up as a result from the analysis of Indonesia’s regulations
for environment along with international best practices of sustainable
industrial estates.
Solidiance first mapped all existing 233 industrial estates in Indonesia
and further developed categories of assessment based on benchmarks
in Asian and European countries which resulted in an approach that
highlights and synchronizes the major functions of ‘3 sustainable pillars’ of
industrial estates, consisting of economic
growth, environment and social aspects.
To localise the scope, Solidiance used data
from Indonesia’s green approach, KLH
(PROPER), which narrowed the estates
into 30+ shortlists. From the 30 shortlisted
industries, Solidiance conducted more
in-depth research to explore various
initiatives on those three pillars.
The analysis finished with the 10 best
estate initiatives. After conducting further
research (interviews, desktop, media
tracking and monitoring) on the 10
estates, Solidiance was able to narrow
down Indonesia’s Best 5 Industrial Estates
which have implemented excellent green
initiatives and have successfully integrated
the three pillars within their operations -
which are highlighted in this white paper.
These initiatives are expected to give fresh
insight and guidance for existing and new
industrial players in shifting their business
approach into a sustainable system.

4. www.solidiance.com4
Indonesia:
Current Industrial Estate,
Trends, & Environmental
Background

5. 5www.solidiance.com
During the recent decade, Indonesia’s economic growth has shown a positive
trend that has strengthened the country’s position as a primary investment
destination in Asia. A combination of solid macroeconomic regulation and
consistent increase of domestic consumption has flourished the country with
sufficient capital to become a strategic hub over Asia Pacific. Amidst economic
turmoil that happened in early 2015, such as drop of global market demand,
decrease in commodity price, and deceleration of global investment, Indonesia‘s
outlook towards macroeconomics remain positive.
Along with its economic growth, the real
estate sector has gained a more positive
promise. This promising state of affairs
has made market players not only put
Indonesia solely as a consumer country,
but also as a strategic manufacturing
point. Multinational reputable companies
have gradually moved its regional
manufacturing hub to Indonesia. This
is reflected in the growing demand for
industrial estates land in various places in
the country.
As the demand for industrial estates increases, supply
side will remain tight as a lot of developers are still
preparing their land back for marketing purposes.
With tight take-up rates, the price of industrial estate
land is expected to rise at approximately 10% per
annum in the coming years. There are more than
60 major industrial estates that exist in Indonesia
today with land size of 27,000 ha. West Java has the
highest number of industrial estates, accounting for
60% of all industrial land while the remaining 40% is
scattered around Indonesia.
Indonesia’s stable growth during
recent decade
27.6
28.3
30.4
59.5
78.9
2011
2012
2013
2014
2015e
GROWTH OF INDUSTRIAL ESTATES IN INDONESIA (1,000 HA)
Number of industrial area Across Indonesia
(2011-2015)
Source: BKPM, Indonesia Ministry of Industry, Solidiance analysis
Source: BKPM, Indonesia Ministry of Industry, Solidiance analysis
16
41
39
466
19
32
16Sumatera
Kepulauan Riau
/ Bintan
Banten
DKI Jakarta
West Java
Central Java
East Java
Other Area

6. www.solidiance.com6
Indonesia’s
current
industrial
estate
• There are more than 230 industrial
estates across Indonesia as of
Q3 2015 and will still continue to
increase in the coming years
• The total built area is 27,320
hectare (ha) with potential new
industrial area development
projected at 19,124 ha
• 60% of existing industrial estates
are centralized in West Java
• There is a significant growth for
demand in industrial estates
driven by the long-term positive
economic growth
• Industrial estate is included as
government’s priority portfolio of
infrastructure
• Cluster-based development of
industrial area on outer Java is
the primary focus of Indonesian
Ministry of Industry
• Potential cities across Indonesia
to be a more integrated city
with better development in
infrastructure, logistic and services
• To focus more on specific industrial
clusters on outer Java across
Indonesia
• The new generation of industrial
estate is mandated to be
environmentally friendly and
socially responsible
AREA TRENDS PROJECTION

7. 7www.solidiance.com
Increasing
level of
CO2 in the
atmosphere
increased gas
emission caused by
transportation
growth by 2050
By 2040, global
energy consumption
projected to increase
by 37%
Increasing
awareness from
society concerning
environmental
conditions
18%
21%
27%
34%
1%
Commercial
Residential
Industrial
Transportation
Other
Growth of industrial estates may have a positive impact to the national economy, however, concerns from pressure groups
have lately emerged concerning environmental and social impacts 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.
Issues resulting from environmental damage have indirectly encouraged activists to urge industrial players to implement the
principles of sustainable business, which is not solely placing the economic outcome as the indicator of business success but
also positioning social and environmental variables for realizing sustainable business practices. The figure below illustrates
the need to bring about change for industries in order to create a better integrated sustainable system without giving more
damage to the environment.
This is due to strong increase
of car demands in emerging
countries
GLOBAL CO2 EMISSION FROM FOSSIL
FUEL COMBUSTION BY TYPE OF
SECTOR, 2014
Total global energy
consumption from the
industrial sector
Environmental background
Source: epa.gov/climatechange
Source: Annual Energy Outlook 2015
Report, EIA
20
22
24
26
28
30
2010 2020 2030 2040
QuadrillionBtu
Industrial

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To fill the gap between industrial estate
growth and the bigger environmental
problem, industrial players are required
to take action initiatively in rethinking
and adjusting their business process to
be more ecological and socially friendly.
These communities of manufacturer
and service businesses must aim to
demonstrate progress towards the goal
of sustainable development through
reducing impacts on the environment or
achieving a more efficient and responsible
use of natural resources, including energy.
Some ASEAN countries have created
green initiative projects to maximize
the industrial player’s progression
towards a greener and more sustainable
industrial estate through a wide range of
policy types, including Indonesia. Social
advancement, environmental protection,
and economic development become the
key drivers leading towards industrial
green initiatives. However, lack of
competent resources with no universal
guidance to implement sustainability
pose as a challenge – depicted here in
Solidiance’s framework.
Green
Initiatives :
the genesis
and growing
trend
TRENDS & demand of
sustainable business
practices
SOCIAL ADVANCEMENT
ECONOMIC DEVELOPMENT
ENVIRONMENTAL
PROTECTION
Current
state:
• Improving communities’
health and education
• Increasing income and
quality of life for the local
community
• Engage with key stakeholders
and the local community
• More innovation to maximize
growth potential
• Increase business’ resilience
• Obtain “social license” to
operate
• Efficiency in resources
• Reduction in pollution and
industrial gas emissions
• Waste management and
minimizing health risks
• Lack of
competent
education,
workforce, and
funding
• No universal
guidance
• Significant
exposure
over social
investment
towards
environmental
and social
related
activities
• Increased
awareness to
conserve the
environment
Source: Solidiance analysis
Industrial green
initiatives

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Indonesia’S
Green Approach (PROPER) and
International Best Practices

10. www.solidiance.com10
An eco-friendly Industrial estate is defined
as the community of manufacturing
and service businesses seeking
enhanced environmental and economic
performance through collaboration in
managing environmental and resource
issues including energy, water, materials,
infrastructure and natural habitats.
PROPER is an Indonesian government
program which is constituted in the
Indonesian Minister of Environmental
Decree No. 127 year 2012 to encourage
private sectors to be more transparent in
publishing its information on environment
management.
PROPER’S KEY ASPECT
PROPER’S OBJECTIVES
PROPER GRADING
• Water & Sea Water Pollution Management
• Air Pollution Management
• Solid & Hazardous Toxic Waste
Management
• Government AMDAL Compliance
• Government Regulation Compliance
• Green Production
• Good Environmental Governance
Implementation
Indonesia’s
solution :
PROPER
The Indonesian ‘green
certification’ approach
Green InitiativesLow High
ComplianceLowHigh
Source: Ministry of Forestry and Environment Republic of Indonesia, Solidiance analysis

11. 11www.solidiance.com
PROPER :
current status &
achievements
Effectiveness
Industrial
Reaction
Materiality
Industrial
Coverage
• Deemed effective as industrial
control tools in managing its
environmental impacts
• Responded positively by private
companies. Participation index had
increased from 49% (2004) to 74%
(2014).
• Its criteria have been replicated by
12 countries among others: China,
Philippines, Mexico and Ghana
• Covers wide-ranged industrial
sectors: Mining, Oil and Gas, Agro-
Industries, Manufacturing, and
Service. Proper 2015 is participated
by more than 2,100 companies
ENERGY CUT
Water Conservation
Waste Reduction
Social Engagement Activities Fund
• 26 Million Gigajoule
• 488 Million M³
• 11 million tons non-
hazardous solid
• 2.4 million tons
hazardous-toxic
• IDR 1.16 trillion
Based on 1,908 participatory companies,
PROPER has claimed to generate a
number of impact as follows:
Among 1,908 participatory companies:
• 9 companies are awarded the
golden category
• 121 companies are awarded the
green category
• 1,224 companies are awarded the
blue category
• 516 companies are awarded the red
category
• 21 companies are awarded the
black category

12. www.solidiance.com12
This Industrial Estate was opened back in
1959, located in Kalundborg, Denmark.
Kalundborg’s green practice offers a
beneficialrelationshipbetweencompanies
which turns their respective industrial bi-
product into valuable resources for other
partner companies, resulting in both
economic and environmental benefits.
Initially, the symbiosis started with a few
key partnerships and gradually grew into
an ecosystem over time.
“The Industrial Symbiosis concept and
system is simple. A company’s by-
product becomes a valuable resource
to one or many of the other companies
in the co-located Industrial Symbiosis
network. This network of recycling
and reusing have generated new
revenue and cost saving for the partner
companies and reduced pollution to
air, waste and land in the area.”
- Robert Suarez, Biomimicry Case Study
International
best practices :
Kalundborg,
Denmark
Kalundborg
System
Key Motivation
to Reduce Cost
by Waste Product
Application
Companies
symbiotic
relationship
within
Ecosystem
Reduction in
Production,
Material, Water,
and Energy
Improved Health
of Local People
& Operating
Efficiency
Natural &
Financial
Resources
Conservation
3 Core
Elements
(Water, Energy,
Material)
Symbiotic
Management
System
Enterprises Major green practices
Novo Nordisk,
Novozymes,
Gyproc, Kalundborg
Municipality, Dong
Energy, RGS 90,
Statoil, Kara/ Novoren,
and Kalundborg
Forsyning A/S
• Inter-companies’
mutually beneficial
relationships
• Energy efficiency by
using thermal heat from
other companies
• Water saving by treating
and using waste water
into usable ‘new’ water
source
• Material by-product
exchange between
companies
Framework of
Kalundborg
Industrial
Estate
Profile of Kalundborg Industrial Estate
Source: Biomimicry Case Study, Solidiance analysis

13. 13www.solidiance.com
Kawasaki Zero Emission Industrial Estate is
one of the early green estate initiatives in
Japan, in which they aim to revitalize its city
by facilitating companies with resources such
as recycling production as well as installment
of resource recycling equipments. The area
was opened back in 2002, located in Mizue-
Town, Kawasaki Ward, with total land area of
77,464 m2 ha.
“Capitalizing on our past experience
with pollution and cutting-edge
environmental initiatives to date,
we plan to widely disseminate
information on superior
environmental technology and
products within Japan and overseas.
We will transfer environmental
technology as a global contribution
and a form of industrial exchange.”
- Japanese ministry of environment
International
best practices :
Kawasaki
Zero Emission
Industrial Park,
JapanKawasaki
Industrial
Town
Kawasaki
New Era Plan
2010
Creation of
Recycling-
Oriented
Society
Companies
inside site
collaborate
to go Eco-
Friendly
R&D of
Coastal
Area on
Environment
Kawasaki
Eco-Town
Contribution for
International
Communication
and Sending
Performance
Kawasaki
Eco-Town
Plan
Needs for
Structural
Changes +
Environment
Issue
Enterprises Major green practices
15 companies
focusing on Metal
Fabrication, Paper,
Surface Planting, and
other sectors with 400
working people
• Use of natural gas cars
• Use of hydro-generation
plants
• Circulating use of
chemicals & water
• Recycling of used mixed
papers
• Plastic waste recycling
and reuse for other
companies
• Introduction of high
efficiency, energy savings
ventilation systems for
commercial facilities
• Resource recycling, Low
CO2 steel operations
• Energy cycle & effective
energy use initiatives
Framework
of Kawasaki
Industrial
Estate
Profile of Kawasaki Industrial Estate
Source: Publication of Japanese ministry of environment, Solidiance analysis

14. www.solidiance.com14
Analysis :
Indonesia’s 5 Best Green
Industrial Estates

15. 15www.solidiance.com
Solidiance’s
analysis &
approach
Afteranalyzingtheformerbestpractices
available for green industrial estates,
Solidiance gained a better perspective
as to how an industrial estate could
transform their existing system into
becoming more sustainable.
While former practices are seen to
focus on mostly two aspects (economic
& environment), it is driven by the fact
that these practices were established
in developed countries, where the
social aspect has been taken care of.
Thus, they have, indirectly, covered all
three aspects simultaneously – social,
economic and environmental aspects.
Enterprises Indicator Focus
Best International
Practices
Social
(Customer Relationship Program)
Economic
(Tenant & Local Economic
Development)
Environment
(Waste & Resource Management,
Energy Efficiency, Recycling)
Kalundborg
Kawasaki

16. www.solidiance.com16
In addition to the above analysis, Solidiance believes that industrial estates need
to have a maximized integrated 3 pillars system to be implemented on becoming
sustainable. The 3 pillars are Environment, Economic and Social. Environment
acts as the core foundation of industrial estate where its condition must be at
the top of every estate management attention list. Every action that will be taken
must not put the environment in a worse condition than when the action was not
taken. The Social pillar is the second pillar, which acts as the main support for the
estate’s operation. Having a cooperative relationship with the local community
will help the estate operate efficiently without having to deal with social issues
that might arise due to bad social relationship programs. Industrial estate must
understand that it is important for them to manage both environment and social
aspects in order for them to support their economic development, since focusing
only on one key aspect will mainly generate cost for them.
After screening all existing 233 industrial estates in Indonesia,
Solidiance used the framework above as a basis to highlight
Indonesia’s best 5 green industrial estates – which have
integrated all three pillars consisting of social, economic and
environmental aspects on their industrial green initiatives.
The following list is sorted in an alphabetical order.
The 3 pillar approach is depicted in a framework constructed by Solidiance:
Rise of
Private
Industrial
estate
Non-
Integrated
Initiatives Integrated Initiatives
Environmental
Management
Initiatives
Economic
Development
Social
AdvancementThe Rising TRENDS & Demand
of Sustainable Business
Practices
Sustainable Industrial
estate

17. 17www.solidiance.com
As the first private industrial park with foreign investment from Japan, EJIP has been demonstrating leading activities and a
role model of industrial park in Bekasi area, which provides complete facilities to support the needs of the customers. EJIP
aims to become the leading industrial park in Asia which constantly stays a step ahead in providing customer satisfaction.
- Gunawan, Vice Secretary General, Himpunan Kawasan Indonesia / East
Jakarta Industrial Park Environment Manager
“EJIP does not tolerate any violations against
environmental damage. To avoid sanctions,
we monitor all our tenants to comply with
every environmental standard which are
clearly regulated by the law. We facilitate our
tenants with the necessary training to better
manage the industrial area. As one of the
pioneers for industrial estates, EJIP believes
that industrial areas will not only need to
improve competitiveness and support from
its society, but also from manufacturers who
wish to operate in Indonesia. Apart from the
economic aspect, there should be a balance
between environmental and social aspect as
well.”
East Jakarta Industrial Park
Source: Solidiance analysis
Enterprises Indicator Focus
Industrial estate
Social
(Customer Relationship Program)
Economic
(Tenant & Local Economic
Development)
Environment
(Waste & Resource Management,
Energy Efficiency, Recycling)
East Jakarta
Industrial Park
Industrial estate
profile
Located in South Cikarang
with total land size of 320 ha,
populated by 101 tenants.
Major green
practices
• Waste water treatment
• Environmental
emergency response
team
• Laboratory facility for
environmental audit
• Fire protection
Awards or
Standards
EJIP has been awarded by
the Ministry of Industry as
‘The Best Performance in
Environmental Management’
back in 2013. EJIP has also
been awarded with “The Best
Performance in Infrastructure
and Facility” in 2013
Profile of East Jakarta Industrial Park

18. www.solidiance.com18
Jababeka Industrial Estate is the first modern eco-Industrial estate in Indonesia. It was developed under joint cooperation of
Indonesia’s Ministry of Environment and Republic of Germany program, ProLH GTZ, with objectives to reduce the pollution
and health risks caused by the industries’ inefficient resource management. Jababeka aims at building modern cities across
the Indonesian province and provide working opportunities for a better life.
– Agus Canny, Director of Investment and Promotion
Board, PT Kawasan Industri Jababeka
“Big foreign companies are
considerably strict when it comes
to environmental compliance.
They won’t bother entering any
estates which can’t support
their needs for such facilities.
In this case, we have our own
estate regulation regarding such
(environment) matters dated back
from 20 years ago. On top of that,
Jababeka surely also complies
with the government’s regulation
- we have our own lab, water plant,
electricity and an internal team to
ensure all compliances.”
Industrial Estate
Source: Solidiance analysis
Enterprises Indicator Focus
Industrial estate
Social
(Customer Relationship Program)
Economic
(Tenant & Local Economic
Development)
Environment
(Waste & Resource Management,
Energy Efficiency, Recycling)
JABABEKA
Industrial estate
profile
Located in Kawasan Industri 1, Cikarang,
West Java. Total land size is accounted
for more than 2,000 ha and filled with
more than 1,600 local and multinational
companies.
Major green
practices
• Implementation of water treatment
plant
• Implementation of sustainable
power plant
• Implementation of retrologistics
• Managing hazardous waste to
licensed unit cleaning facilities
Awards or
Standards
PT. Jababeka has been awarded for
its outstanding development activities
with the award for supporting housing
development from the Ministry of
Public Housing, and a CSR award for
environmental sector from the Ministry of
Social Affairs.
Profile of Jababeka Industrial Estate

19. 19www.solidiance.com
Kota Bukit Indah industrial city was one of the pioneers in Indonesia’s industrial estate managed by a private sector. Starting
from the needs of a manageable industrial area that is integrated and with permission from the government, Kota Bukit
Indah developed a sustainable industrial estate back in 1990 by two developers, i.e. PT Besland Pertiwi and PT Indotaisei
Indah Development.
- Irwan Makinto, Marketing General Manager, Kota Bukit Indah Industrial City
“We educate the local community about our
industrial estate, introduce them to our key
stakeholders, and give them educational
support, tools and facilities on top of it.
As an industrial estate, we did not merely
build physical appearance, but we also built
a good community around us. We have
witnessed economic development of our local
community, such as they have a better house
now. In addition to that, every 6 months, our
key stakeholders engage directly with the
community as a way to interact with our local
community.”
Source: Solidiance analysis
Enterprises Indicator Focus
Industrial estate
Social
(Customer Relationship Program)
Economic
(Tenant & Local Economic
Development)
Environment
(Waste & Resource Management,
Energy Efficiency, Recycling)
Kota Bukit Indah
Industrial
estate
profile
Located in Purwakarta with
a total land area of 2,000 ha
and populated with more
than 90 tenants.
Major green
practices
• Waste water treatment
plant
• Pollution control (Air &
Noise)
• City forest within
industrial estate
• Waste management &
lighting protection
Awards or
Standards
Kota Bukit Indah is awarded
with “Piagam Hutan Kota”
by West Java’s government
in 2011
PROFILE OF KOTA BUKIT INDAH
INDUSTRIAL CITY

20. www.solidiance.com20
MM2100 Industrial Town is a fully integrated industrial estate developed by PT. Megalopolis Manunggal Industrial
Development (MMID), established in 1990 by two well regarded corporation; Marubeni Corporation of Japan and Manunggal
Group of Indonesia. MM2100 aims to be Indonesia’s leading industrial provider of superior business environment and
services for manufacturing companies and related operations.
- Sri Suryanti, Environment Health and Safety Manager, MM2100 Industrial Town
“We strongly believe that the combination
of people, planet and profit are all three
aspects that cannot be implemented if one
of them goes wrong. Therefore MM (MM2100)
starts from giving a sense of security and
health to people (both managers, tenants
and the surrounding community), realizing
the environmental management for the
preservation of the planet. Profits will
eventually follow through only when the
people and the planet have been secured, and
we will continuously improve on those issues.”
Source: Solidiance analysis
Enterprises Indicator Focus
Industrial estate
Social
(Customer Relationship Program)
Economic
(Tenant & Local Economic
Development)
Environment
(Waste & Resource Management,
Energy Efficiency, Recycling)
MM2100 Industrial
estate
Industrial
estate
profile
Located in West Cikarang
and is one of the closest
Industrial estate to Jakarta
area. Total land size is
accounted for more than
800 ha and filled with
more than 170 local and
multinational companies.
Major green
practices
• Improvement of waste
water treatment plant
technology
• Laboratory Facility for
environmental audit
Awards or
Standards
MM 2100 Industrial Town is
awarded a green certificate
from PROPER Indonesia for
two consecutive years.
Profile of MM2100 Industrial Town

21. 21www.solidiance.com
Suryacipta City of Industry is planned, developed and managed by PT Suryacipta Swadaya as a full serviced industrial
estate, well equipped with infrastructure and supporting services back in 1990. They have successfully built a green and
environmental friendly industrial area with international standards and has been entrusted by hundreds of multinational
companies from more than 10 originating countries in multiple industries.
- Agus Sukarno S, Tenant Relation Manager, Suryacipta City of Industry
“Sufficient attention on social and
environmental aspects will only be costly
if implemented to half of an extent.
Suryacipta feels that investing socially to
the environment and to the surrounding
communities will not only help manage the
physical environment and social community
well, but also receive support from society.
That is return on investment that is difficult
to be replaced.”
Source: Solidiance analysis
Enterprises Indicator Focus
Industrial estate
Social
(Customer Relationship Program)
Economic
(Tenant & Local Economic
Development)
Environment
(Waste & Resource Management,
Energy Efficiency, Recycling)
Suryacipta City of
Industry
Industrial estate
profile
Located in Karawang Area
with total land size of
1,400 ha. Total tenants are
accounted for more than
100 local and multinational
companies.
Major green
practices
Waste water management
with International Standards
Awards or
Standards
The Ministry of environment
awarded the Company’s
environmental management
with corporate performance a
BLUE Rating for the period of
2010-2011
PROFILE OF SURYACIPTA CITY OF INDUSTRY

22. www.solidiance.com22
• Green space could generate higher return for the
company in the long run (over 50 years). In terms of
economic growth and investment, green space increases
land and property values or prices and may benefit local
economies in indirect ways.
• Companies which have reused their water were able
to decrease 10-15% from costs for purchasing new
water. On average, from total water consumption, 45-
60% of waste water can be recycled, leading to a cut in
production costs.
• ‘Green’ technologies can help companies save costs
through less energy usage. Cost saving on energy
maintenance can reach up to 7-15% by applying eco-
friendly technology such as solar cells and LED lights.
Solidiance believes that Indonesian industrial estates have
the potential to transform into an advance sustainable entity
in the long run. In order to reach this stage, the government’s
full support through clear regulation, enforcement, and
funds are needed to make it easier for the industrial players
to implement major eco-friendly changes.
CONCLUSION
Solidiance uses the international best practices in the
green industrial estates as a benchmark and takes into
consideration the 3 pillars (economic, social, environment)
to assess the marketplace in Indonesia and come up
with the country’s 5 Best Green Industrial Estates. The
hands-on observation and in-depth analysis show that
the development of Indonesia’s industrial estates towards
green practices is still at the nascent stage. The main gap
that needs to be filled lies on the government regulation to
drive further development in the industry.
A few takeaways on the benefits of implementing green
practices in the industrial estates are shown with the
following number of scalable measures :

23. 23www.solidiance.com
Indonesia's stable economic growth puts it in the strategic positioning as manufacturing
point. This results in the increasing investment in industrial estates.
Indonesia's Green Industrial Estate segment is currently still at the nascent stage, but future
potential exists. Government regulation is necessarily needed to spur adoption and growth.
Projected increasing CO2 emission + energy use + gas emission —> rising environmental awareness in the industry
CURRENT INDUSTRIAL ESTATES IN INDONESIA
FUTURE INDUSTRIAL ESTATES IN INDONESIA
BENCHMARK : INTERNATIONAL BEST PRACTICES
RESULT : INDONESIA’S 5 BEST GREEN INDUSTRIAL ESTATES
BENEFITS OF GREEN INDUSTRIAL ESTATE
SOLIDIANCE’S FRAMEWORK : 3 PILLARS OF GREEN INDUSTRIAL ESTATE
Indonesia has >60 major industrial estates with land
size of 27,000 ha, of which 60% is located in West Java
Potential new industrial area
development is 19,124 ha
Price of industrial estate land
to rise at ~10% per annum
More focus on industrial clusters
outside of Java
Mandated to be environmentally
friendly & socially responsible
More integrated complex with better
infrastructure, logistics, & services
Kawasaki Zero Emission Industrial Park, Japan
Social
Environment
Source: Solidiance - www.solidiance.com
Economy
Energy saving and less
electricity bills
Less costs in new water
purchase
Higher return in the long run
(>50 years)
Kalundborg Industrial Estate, Denmark
SURYACIPTA
CITY OF INDUSTRY
2100 INDUSTRIAL TOWN
I N D U S T R I A L C I T Y
EJIP
East Jakarta Industrial Park
Industrial Park
$$
GREEN INDUSTRIAL ESTATES & BEST PRACTICES

24. www.solidiance.com24
Authors
Gervasius Samosir | Manager
Gervasius is the Manager of our Indonesia office with strong industry experience,
particularly in telecommunication, oil & gas, energy, and industrial products. Prior to
joining Solidiance, he worked in strategy consulting and market research firms where
he led several projects with various leading companies across Indonesia, Malaysia &
Philippines. He has supported large global companies with alliance partner build
out, target customer identification and penetration programs. His previous working
experience includes working with a major Indonesian Telco-operators and various
prominent management consulting firms. Gervasius holds an MBA from the Asian
Institute of Management in the Philippines and had received an education program from
Chicago Booth School of Business.
Prama Yudha Amdan | Consultant
Yudha is Solidiance’s Consultant based in Indonesia. He brings more than four years of
experience in strategic communication and non-financial risk assessment for business
such as political landscape and regulation analysis. Prior to joining Solidiance, he had
handled clients from FMCGs and manufacturing industries with various cases and
backgrounds ranging from corporate and marketing communication, public affairs and
litigation communication. His strong public affairs experiences provided him with good
relations with senior level of first-tier media journalists and government officials. Yudha
holds a Bachelor degree of Communication Science from Padjadjaran University with
final achieved GPA of 4.0 and is currently pursuing his MBA from Bandung Institute of
Technology (ITB).
Astrid Handari | Analyst
Astrid Handari is an analyst based in Solidiance Indonesia. Prior to joining Solidiance,
Astrid worked in one of the respected multinational commercial banks with specific area
in portfolio management and commercial bank risk. Astrid had also previously worked
in one of the British-originated consulting firm, based in Hong Kong – during which
she helped consultants with projects in Indonesia and worked in one of the biggest
multinational retail cosmetic brands as Marketing Coordinator. Astrid acquired her
bachelor degree in School of Business and Management, Institut Teknologi Bandung
and received her master’s degree in University of Birmingham, United Kingdom majoring
in Strategic Marketing and Consulting.

25. 25www.solidiance.com
What we do
Soldiance is a corporate strategy consulting firm with
focusonAsiaPacific.WeadviseCEOsonmake-or-break
deals, define new business models and accelerate Asia
growth. Through our 10 offices across Asia, we provide
our clients with a better understanding of intrinsic
regional issues. To learn more about how Solidiance
has helped many Fortune 500 & Asian Conglomerates
to succeed in Asia, please visit:
http://www.solidiance.com/clients.
What we are focusing on
Our industry experience is centered on industrial
development, construction materials, green buildings,
and urbanization. Our Asian market entry and growth
strategy services provide the required insights and the
necessary roadmap to capture a profitable market
share in the region.
Additional details
Solidiance has offices in China, India, Indonesia,
Malaysia, Myanmar, Philippines, Singapore, Thailand,
UAE and Vietnam. We are fast expanding and always
on the lookout for exceptional people.
ABOUT
US

26. solidiance
China
Suite 516, Fuxing Plaza, 109
Yan Dang Road
Shanghai 200020
Phone: +86 2153019980
Indonesia
Oleos I Building
6th FLoor - Unit 612
Jl. Mampang Prapatan Raya
No. 139A, Jakarta 12950
Phone : +62 21 7918 0330
Myanmar
4th Floor, Shwe Gon Plaza
Kabar Aye Pagoda Road
Bahan Township, Yangon
Myanmar - 11201
Phone: +95 979 700 6465
Singapore
Suite 07-05
High Street Centre, 1 North
Bridge Road
Singapore 179094
Phone: + 65 31520301
UAE
Suite 402D - Dark Green
Building, TwoFour54
Sheikh Zayed Road
Opposite Khalifa Park
Abu Dhabi, United Arab
Emirates
PO Box 769338
Phone: +971 (0) 24 420 420
India
Suite M-38/1 3/Floor,
IBC Tower. Middle Circle,
Connaught Place,
New Delhi – 110001
Phone: +91 9999988859
Malaysia
23A-02 Binjai 8 Premium
SOHO, 8 Lorong Binjai
Kuala Lumpur 50450
Phone: +60 3 21 810 692
Philippines
Unit 2105, Tycoon Centre
Pearl Drive, Ortigas Centre
Pasig City, Metro Manila
Phone: +63 2531 8346
Thailand
Interchange Tower 21
#2109 - 21F
399 Sukhumvit Road
North Klongtoey, Wattana
Bangkok 10110
Phone: +66 26112664
Vietnam
Suite 704,
Satra Dong Khoi Building
58 Dong Khoi street
District 1, Ho Chi Minh City
Phone: +84 835218639
Website:
http://www.solidiance.com
Email:
info@solidiance.com
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