PT. YTL Jawa Timur, Coal Power Plant

Triple Wins for Triple Bottom Lines

5020 8A91

Author

Arief Saptahadi

Arief Saptahadi

School

IPMI International Business School

IPMI International Business School

Professor

Amelia Naim Indrajaya

Amelia Naim Indrajaya

Global Goals

1. No Poverty 8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 15. Life on Land

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Summary

  • Innovation that change the unused material into useful material.
  • The initiative creates benefit to company, local community and the environment.

Innovation

A Work Improvement Team (WIT) was built to address the challenge. Volunteers were called from many departments, i.e., Production, Chemist, Environmental and CSR. They teamed up and elected Wahyu Hikmawan from Production to be the leader. In his first speech in front of his team, he motivated them, “Guys, our mission is to change the unwanted material to become the most wanted material by applying an innovation. This innovation shall be made on the principle of triple bottom lines; people, planet and profit. Are you ready with this challenge?”

An innovative approach to solve the problem was then proposed by the team. The proposal was championing a treatment process that enables the ash utilization. The bottom ash was processed to become pre-cast paving stones.

Feasibility studies, which were consisted of technical, environmental and legal aspect, were conducted. The result of the study was promising. The pre-cast paving stone project was viable to be followed up. A volunteer member from CSR department rose the idea to address the second challenge, “Could we make this project sustainable? Could we empower the local community to run the project?”

A Business Plan of Pre-Cast Paving Stone Production which addresses all the challenges was made and presented to the Top Management seeking for approval and support. After a tough presentation, the proposal was finally accepted by Top Management. Approved! It was approved.

Wahyu Hikmawan expressed his excitement, “Yes! These are triple wins, win win win, for triple bottom lines! This will be our contribution to make a better world”.

A small sized factory then was constructed. In coordination with CSR team, the local community people were trained to operate the factory. First production commenced.

The first production of pre-cast paving stone products were distributed to the neighboring communities to improve their infrastructure. As a result, good quality transportation access have been made available for the local community.

Triple Wins for Triple Bottom Lines

Inspiration

Innovation could be defined as the process of creating value added of the existing condition.

Innovation is one of the possible approaches to deal with the complex challenges. The challenges may come from the environment, health, poverty, education, availability of food, employment and so on. Innovation is not an easy job, but it can be done. Tenacity and hard work is definitely required to get the innovation successfully performed.

In this case, the Ash before was a big waste problem. Mountains of Ash were a big problem for the company. But now the waste material are up-cycled and has opportunity to become additional source of income for the company and communities.

Overall impact

This innovation shows the positive results to the company, local communities and environment. This is showing flourishing tipple bottom lines.

Business benefit

By processing the solid waste to become pre-cast paving stones, the company has built a sustainable benefit. A component of company’s cost stream could be eliminated. The cost of solid waste management is permanently removed from its business plan.

Social and environmental benefit

This initiative is also positively impacting the community and environment. The community is benefiting from having a good quality access which leads to initiate the community’s economy improvement. The pre-cast paving stones factory also offer employment opportunities for local people. For further benefiting local community, the company is deeply considering of granting the pre-cast paving stones factory to community cooperative in the near future.

And how about the environment? For sure, it will be benefiting the environment as well. The solid waste which potentially pollute the land can be transformed into environmental friendly material.

Interview

Wahyu Hikmawan, Deputy Operation Manager

Photo of interviewee

Business information

PT. YTL Jawa Timur, Coal Power Plant

PT. YTL Jawa Timur, Coal Power Plant

Paiton, Probolinggo, East Java, ID
Business Website: http://www.jawapower.co.id/
Year Founded: 1997
Number of Employees: 201 to 500
PT. YTL Jawa Timur is the Operating and Maintenance Company of the Coal Based Power Plant. It is located in Paiton, Probolinggo, East Java, Indonesia. The electricity which is generated from this power plant is distributed to the customers through Java-Bali interconnection grid. The Company is not merely doing business for its own benefit, but it also actively participates in local community empowerment and development.