Green Toll Road

PT Jasamarga (Persero) Tbk

3. Good Health and Well-Being 6. Clean Water and Sanitation 7. Affordable and Clean Energy 9. Industry, Innovation and Infrastructure 13. Climate Action

Overview

Jasamarga is a state-owned enterprise that serves as the largest developer and operator of toll roads in Indonesia and until the end of 2020, Jasamarga has operated 1. 214 km toll roads in Indonesia from 1. 607 km concession owned.

One of the keys to successful transformation of the Company is with the concept of Sustainable Development integrated from 3 aspects, namely economic, social, and environmental. The first step of this environmental initiative means that the construction of toll roads in Jasamarga prioritize environmental aspects, namely emissions reduction, electricity energy savings, and water savings.

The purpose of Green Toll Road innovation in the social field emphasizes on the implementation of corporate social responsibility that refers to applicable government regulations and involves the community around the toll road area to participate in toll road business operations. In addition, in terms of the environment, the amount of Greenhouse Gas emissions resulting from energy use can be lowered by the implementation of green toll road criteria. Jasamarga through Green Toll Road, which has been recognized by Green Product Council Indonesia, demonstrates its commitment in efforts to reduce the impact of climate change.


Author

Donny Arsal

Donny Arsal

School

IPMI International Business School

IPMI International Business School

Professor

Amelia Naim Indrajaya

Amelia Naim Indrajaya

Innovation

Green Toll Road project that has been carried out in two sections, namely Gempol-Pandaan Toll Road managed by PT Jasamarga Pandaan Tol and Pandaan-Malang Toll Road managed by PT Jasamarga Pandaan Malang can be an initiative for the development of Green Toll Road in other sections owned by Jasamarga. With the implementation of green toll road will have an impact on emissions reduction, electricity energy saving and greater water savings will be more pronounced impact.

The integration of Green Toll Road implementation will encourage the emergence of Smart Toll Road that prioritizes environmental aspects. With this also, it can be a first step, for the future, the development of areas around toll roads such as Toll Corridor Development or Transit Oriented Development needs to apply the principle of applying environmentally friendly resources and have the value of environmental benefit. This will encourage the realization of smart community based environment.

In the concept of Green Toll Road development, Jasamarga maps and takes into account the consistency of implementation in the field and the impact on the environment and social. Environmental impact is defined in the determination of indicators where the benchmarks used as a reference are:

1. Efforts to reduce emissions through measurable amounts of tree planting with carbon emission absorption;

2. Efficiency of the use of energy sources with efforts to save electricity and energy efficient energy;

3. Waste management using the principles of reduce, reuse and recycle;

4. The use of environmentally friendly materials with priority on products that have environmentally friendly recommendations;

5. Maintenance of toll roads by controlling project waste.


Green Toll Road

Green Toll Road

Inspiration

The growing transportation and economic value in it, indicates the increasing volume of vehicle traffic that connects people and goods from one place to another. This upward trend is predicted to continue given the fact that domestic car sales have more than doubled in the last 15 years. The use of vehicles plays a role in the improvement of Greenhouse Gas Emissions.

Meanwhile, Greenhouse Gas Emissions not only comes from vehicle emissions, but also comes from the process of generating electricity. Electricity demand in Indonesia is increasing rapidly due to economic growth accompanied by urbanization and industrialization. This increase in electricity needs indicates that there will be higher power generation activities that produce Greenhouse Gas Emissions.

Increasing knowledge of global climate change as a result of GHG emissions due to human activities is the right momentum to develop strategies to reduce carbon emissions and other environmental impacts in the social conditions of Indonesian society. Currently manufacturers are vying to create something new product that can reduce Greenhouse Gas Emissions because of the awareness and encouragement of sustainable development that focuses on the environment. Indirectly this gives rise to a new trading market that prioritizes friendliness to the environment. The emerging demand for the fulfilment of environmentally friendly concepts is welcomed by the supply of manufacturers through product innovation, including Jasamarga's Green Toll Road program.


Overall impact

The concept of long-term development of Green Toll Road has the potential to affect other industrial sectors that are closely related to infrastructure. This is reflected by the use of environmentally friendly materials used during the construction of toll roads.

It can be interpreted, that the implementation of Green Toll Road is not only felt for toll road developers but also has an influence on the toll road support industry. Furthermore, Green Toll Road is also able to create an industrial ecosystem that prioritizes environmentally friendly industrial practices so that the resulting "green" products have market share.


Business benefit

PT Jasamarga itself has had an environmental development program. where the company conducts a Superior Partnership Program with a benefit ratio that can be covered is in the form of overall cost of social programs run with quality of beneficiary receipt and quantity of beneficiaries. The ratio value is above 2 with the turnover growth value of all partners averaging 5% annually. The value of this ratio of 2 is greater than 1, so the activities of the company's Featured Partnership program are considered to provide benefits or benefits to partners in the future, so it is worth continuing.

Social and environmental benefit

The purpose of Green Toll Road innovation in the social field emphasizes on the implementation of corporate social responsibility that refers to applicable government regulations and involves the community around the toll road area to participate in toll road business operations such as facilitating tenants of Small and Medium Micro Enterprises (MSMEs). Jasamarga has a number of excellent partners who benefit from CSR programs conducted by Jasamarga. The implementation of Green Toll Road will have an impact on social and environmental aspects.

In addition, in terms of the environment, the amount of Greenhouse Gas Emissions resulting from energy use can decrease with the implementation of green toll road fulfillments. For example, in the use of electrical energy in the Office building of PT Jasamarga Pandaan Malang, after efforts to meet the criteria of Green Toll Road, the energy used is predicted to be reduced by 33% in one year. That is, greenhouse gas emissions produced will also decrease approximately by that number. This is obtained from the change in the use of materials from previously not environmentally friendly to materials that have been labeled green.


Interview

Mohamad agus setiawan, Corporate Secretary

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PT Jasamarga (Persero) Tbk

PT Jasamarga (Persero) Tbk

Jakarta Timur, DKI Jakarta, ID

Business Website: https://www.jasamarga.com

Year Founded: 1978

Number of Employees: 5001 to 10000

Jasamarga is a state-owned enterprise that serves as the largest developer and operator of toll roads in Indonesia and until the end of 2020, Jasamarga has operated 1. 214 km toll roads in Indonesia from 1. 607 km concession owned.