Supporting GIS Green Cement Innovation, Hashim Djojohadikusumo Believes That The 3 Million Houses Program Will Help Oversupply Cement

GIS President Director, Donny Arsal. (Photo: Doc. SIG)

JAKARTA - The Presidential Special Envoy for Climate and Energy, Hashim S. Djojohadikusumo emphasized the commitment of President Prabowo Subianto's administration in the housing sector through a program of 3 million houses. Not only aimed at providing housing for the community, the housing sector is considered to provide a stimulus to support national economic growth.

"We have now made a real commitment from the Qatari government and the Qatari private sector to finance 4 million to 6 million housing units. In addition, yesterday we met with the Minister of Energy and Industry of the United Arab Emirates as well as committed 1 million and maybe more. This does not include China, Turkey, India, Singapore and others. This will all be an economic stimulus for 185 areas of the economy that are bound or touched by the housing sector, including cement," said Hashim S Djojojohadikusumo when delivering the keynote speech at the ESG Sustainability Forum 2025 event organized by CNBC Indonesia at the Mega Bank Tower, Jakarta, on Friday, January 31.

According to Hashim S. Djojohadikusumo who is also the Head of the Housing Task Force (Satgas), the 3 million house program each year will increase demand for cement, so that it can help overcome the oversupply problems faced by the domestic cement industry today.

"That's as long as Pak Prabowo leads, the housing program will continue," said Hashim S. Djojohadikusumo.

On the other hand, Hashim S. Djojohadikusumo also appealed to industry players to pay attention to environmental aspects as economic activity increases.

What does it have to do with ESG and the environment? The business must have an impact. The cement factory continues to produce and produce emissions. Here we have to take care of it well," said Hashim S. Djojohadikusumo.

Speaking as a resource person at the same event, GIS President Director Donny Arsal said that GIS always carries out sustainable business practices based on ESG pillars (Environmental, Social, and Governance) as a form of the Company's commitment to ensuring long-term business continuity. SIG also has and implements the Sustainability Roadmap 2030 which reconciles the Triple Bottom Line aspect, namely Planet, People, Prosperity.

SIG is constantly working on reducing the level of carbon emissions per tonne of its products through decreasing energy consumption and increasing productivity through AI-based technology (artificial intelligence), reducing dependence on natural resources through the use of alternative raw materials and fuels, solar and microhydro power plants, as well as heat recovery (WHRPG), and the use of new technologies in line with developments such as hydrogen rich injection.

Environmentally friendly operating patterns have supported the GIS initiative in producing green cement which is recorded at 21 percent to 38 percent lower in carbon emissions than conventional cement. GIS also offers sustainable home construction solutions with precision interlocks, derivative products from environmentally friendly GIS green cement. The use of BIP helps the housing development process be faster and more efficient, and earthquake-friendly with a modern look," said Donny Arsal.

Donny Arsal added that SIG has converted Company financing to the Sustainability Linked Loan (SLL). Apart from being a GIS commitment to the decarbonization initiative, SLL also provides benefits of lowering interest margins compared to existing syndicated bank debt with better terms. This initiative further demonstrates the seriousness of GIS in efforts to decarbonize.

"SIG's commitment to supporting global warming prevention in the form of a GHG (cash gas) emission reduction target has achieved validation from an international institution, Science-Based Target Initiatives (SBTi). This achievement brings GIS to be the first company in the Indonesia building materials industry to be validated by SBTi, which has strict criteria in setting the GRK emission target so that it can be scientifically accounted for," said Donny Arsal.

In the series of ESG Sustainability Forum 2025 events, SIG also received the ESG Ratings 2025 by CNBC Indonesia Research award for the Company's commitment to creating environmentally friendly products, as well as efforts to reduce carbon emissions.