PT PP

Green Construction Concept for a Sustainable Business

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Author

Santi Hairunissa

Santi Hairunissa

School

IPMI International Business School

IPMI International Business School

Professor

Amelia Naim Indrajaya

Amelia Naim Indrajaya

Global Goals

6. Clean Water and Sanitation 8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 11. Sustainable Cities and Communities 12. Responsible Consumption and Production

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Summary

Construction is activities that change the environment. Green construction concept is a strategy to encourage eco-friendly business activity, in order to support environmental preservation and sustainability business.

Innovation

In 2008, PT PP declared their commitment in implementing the Green Construction Concept, with an environmental friendly construction process from beginning to the completion of the project. Realizing in that moment the awareness and implementation of the green construction concept has not been recognized in Indonesia, PT PP start the initiative as a pioneer of green building development in Indonesia by taking role as one of the corporate founder of Green Building Council Indonesia. PT PP also participated to support the Jakarta Government to release DKI Jakarta Decree No. 38/2012 about green building and Ministry of Public Works and Public Housing Decree No. 02/PRT/M/2015 about green building.

PT PP understand that in the construction business, to be implemented successfully the green construction concept should be supported by people who share the same perspective, and has the willingness and commitment of related parties such as regulators, potential customers, and the community. Based on this consideration PT PP feels like they have a responsibility to share knowledge about the green building and green construction concept to all shareholders. Lots of numbers of PT PP's employees has an active role as a facilitator and assessor on green building certification or training, also lots of events has been held by PT PP to share about green construction concept.

Construction is the activities that change the environment. Green construction concept is a strategy by PT PP to encourage eco-friendly business activity, in order to support environmental preservation and sustainability. Green construction concept is conducting construction planning and management which minimize significant impact from construction process to the environment. It is an obligation for every project to implement Green Construction.

In 2012 to 2016, PT PP built port harbor in Tanjung Priok Jakarta Indonesia, named Kalibaru Project or New Priok. This project is the largest port construction project in Indonesia, covering an area of ​​400 hectares, with a capacity of 4.5 Million TEUs / years, and using the materials as follows:

  • Concrete spun pile : 16.678 pieces with a depth of 40 metres.
  • Concrete : 480.634 m3
  • Stone : 2.8 million m3
  • Dreging material : 25 million m3
  • Sand : 10.6 million m3

PT PP applied innovation of research achievement that was developed for Kalibaru Project. The technology is applied 80% full precast in the port construction and modular material. Precast pile cap sized was 6 x 2.4 x 2.4 m using Insitu method. All equipment activities and precast production are performed on the deck. Applying precast technology, will make the construction process performance to be more efficient in terms of time and quality.

Challenge in using modular material and precast requires accurate and high precision, then installing the piles must have high precision using GPS. This work is just like playing LEGO, which can be conducted faster and followed with perfect quality, less expensive, and care for the environmental.

Green construction concept applied in this project are using environment-friendly material that meet reuse-recycle-reduce principle, water usage saving, energy efficiency, indoor sanitation, air quality and building environment management. Insitu precast method reducing construction waste such as metal scrap and residual concrete.

Green Construction Concept for a Sustainable Business

Inspiration

Prospect for construction business is still promising in the future despite the fierce competition level. Having sustainable business PT PP realize they must have a different strategy from business as usual. The new insight that PT PP shall not only prioritize revenues and profits, but how they can help support the environment, social and economy, in other way triple bottom line planet, people and profit.

PT PP vision is to be the leader in construction and investment company by entering upstream business to become an investor which need to create its own market in infrastructure sector. To actualize this vision, PT PP strategies are creating market to increase profit which strengthen the company equity to become a large-scale investor.

In order to sustain, another factor to be reinforced is the people. Employees, need to be competence and experienced. They also need to have high satisfaction level working in PT PP. These employees then would be loyal and ready to support the company's strategies.

The important strategy to achieve this vision by implementing the Green Corporation concept, where PT PP began by developed the green building concept then continue this action as follow:

  • Green construction concept in every infrastucture project and construction process.
  • Green energy by built garbage power plant and geothermal power plant.
  • Green port to reducing ship fuel usage when enter/out from port.
  • Green transportation through Metro Capsule project.

Mr. Tirza Mazli, Green Officer, said “all of Indonesian contractor is green contractor, but people only remember the first one….”

Overall impact

Kalibaru Project provides evidence that construction activities can be seen with a positive view and different look when applying the green construction concept. Mrs Ni Made Sasanti, Departemen Head of Strategic Planning, stated her point that “contractor image usually harm the environment, PT PP want to change this opinion cause we cannot stop the development, however we shall remain friendly to the environment”.

Business benefit

PT PP proven successful complete the Kalibaru project, with a fast, efficient, quality, and environmental care. The owner give his trust to PT PP carry out other projects. Several parties are today acknowledged PT PP for having high concern on sustainability and green development.

The growth was contributed since the green construction declaration, embraced in the last 5 years. PT PP booked IDR 27,07 trillion new contract in 2015. The value increased 33.76% from IDR 20,24 trillion contract booking value achieved in 2014. The new contract keep increasing since over 5 year, in 2011 booked IDR 12,35 Trillion, in 2012 booked IDR 19,47 Trillion, in 2013 booked 19,58 Trillion, in 2014 booked 20,24 Trillion and in 2015 booked IDR 27,07 Trillion.

In 2010, PT PP officially traded on the Indonesia Stock Exchange. At First Initial Public Offering (IPO) of 1.04 billion shares PT PP offered at the initial price of IDR 560, the number of shares released is equivalent to 21.46 percent of the total 4.84 billion shares. Until now, the current stock price continues rise to IDR 3370. PT PP believe this result is the impact of green construction concept application in their business strategy, which assurance to raise our contribution to all stakeholders, in terms of economic, social and environment aspects.

As the corporate founder of Green Building Council Indonesia, PT PP acknowledge being expert in green building development. Many buildings that have been constructed by using the green building concept, such as Singapore Embassy in Jakarta, Minister of Public Work Office, Jakarta etc.

PT PP also had ongoing green building construction, as follow:

  • Grand Kamala Lagoon Bekasi Jawa Barat, owned by subsidiary, PT PP Properti Tbk.
  • Grand Sungkono Lagoon Gresik Jawa Timur owned by subsidiary, PT PP Properti Tbk.
  • Menara BNI Pejompongan, Jakarta.

PT PP become the leader of the green building contractors in Indonesia made us knows how to built and understand the criteria to create better design. Even improve the existing building such as our office buildings, Wisma Subiyanto in Jakarta into green building criteria whose certified with silver ratings. The Ministry of Public Works Office in Jakarta which designed by PT PP, had achieved Platinum Greenship certification, National Awards Winner for Category Energy Efficient Building in 2013 and Winner of Asean Energy Award in 2014.

Over the years, PT PP has received a number of awards for accomplishments as a result of their commitment to implement green corporation and best performance. In 2016 PT PP received ACECC Civil Engineering Project Award for Kalibaru Project Tanjung Priok Jakarta, projects have been evaluated in three categories : 1) contribution to the advancement of civil engineering; 2) contribution to the region where the project was undertaken; 3) impact on the Asian region.

Mr. Arif, Manager of Building Information Modeling, said that “when green construction became our priority, it will lead the increasing revenue in the future”

Social and environmental benefit

Implementation of green construction can give an added value to the contractor, the impact similar with the cleaner production in manufacturing. Performing the efficiency of energy, material, water and fuel in the construction process will lead to energy saving, carbon saving, water use saving, compliance emission and minimize waste, and the final result will generate production cost saving and rise the profit.

Based on Kalibaru Project, technology of insitu precast have lots of benefit impact to society and environment, as follow :

  • Reducing CO2 emission, within insitu methode declining mobilization of equipment and process.
  • Reducing construction waste such as metal scrap and residual concrete. The construction process generally produces residual concrete between 4-5% of the used concrete, by implemented green construction only generates 0,5-1% of used concrete. This is due to high acuracy and minimize manual work that only conducted in pouring connection stages, lack of possibility sea contaminated from residual concrete.
  • Material efficiency and the potential reuse from metal usage.
  • Electricity efficiency from sollar cell usage, lamp censor and energy saving lamps.
  • Employee satisfaction and better productive working style.
  • Water conservation from water usage saving, recycling waste water and infiltration well.
  • Clean and pleasant working environment.
  • Reducing domestic waste and paper waste.

This benefit came in every project using green construction concept, that lead to a positive perception in the construction process in the community. Green construction made a balance between the ability of the environment and human needs for current and future generations

Mr. Tirza Mazli, Green Officer I, said “Green construction concept is something possible be implemented, the cost is affordable compare to lots of thing able to saving. Green construction enhance the environmental aspect by saving another aspect”

Interview

Hadjar Seti Adji; Ni Made Sasanti; Arif; Tirta Mazli, Head of Strategic Planning, Research and Technology; Departemen Head of Strategic Planning.

Photo of interviewee

Business information

PT PP

PT PP

Jakarta, ID
Business Website: http://www.pt-pp.com
Year Founded: 1953
Number of Employees: 1001 to 5000
PT PP (Persero) Tbk, (called PT PP) one of prominent construction and investment in Indonesia. Increasing competition in the construction business, PT PP transform their strategy in harmony with the environment. Along with business growth, PT PP is committed to achieve sustainable business objective, by always ensure its business activity is safe to environment. Their mission is to have positive contribution to the environment and society through the development of green corporation. PT PP believes that sustainable business has to balance concern among profit, people and planet aspects. What PT PP did at that time was a novelty in construction business, PT PP hope to give inspiration for other companies. Because green construction concept is easy to follow and they allow to be followed. Mr Hadjar Seti Adji, Head of Strategic Planning, Research and Technology, said that “we believe that one day all Indonesian contractor will be a green contractor, but we are happy cause we initiated them to be green contractor”.