Auzzi Shopping

Men's Weekly

.

Gunung Raja Paksi Initiates Sustainable Value Chain Ecosystem for Indonesia’s Steel Industry

  • Written by Auzzi Shopping

Ramping up on their decarbonisation efforts, the steel manufacturer seeks to enhance the competitiveness of Indonesia’s steel industry on the global stage.

JAKARTA, INDONESIA - Media OutReach - 12 May 2023 - PT Gunung Raja Paksi Tbk (GRP), a member of the Gunung Steel Group, is further championing Indonesia's sustainability agenda by kickstarting a value chain ecosystem for the nation's steel sector.

With an aim to enhance the competitiveness of Indonesia's steel industry while advancing sustainability goals, a Focus Group Discussion (FGD) was recently held with key members of the Ministry of Industry, Ministry of Trade, the Net Zero Hub of the Indonesia Chamber of Commerce (KADIN), the World Resources Institute, PT Tata Metal Lestari (Tatalogam Group) as well as the University of Indonesia among other partners.

The preliminary FGD initiates an important conversation for the heavy-weight industry and GRP aims to achieve the following:

  • Explore potential collaborations and partnerships with a shared vision and mission to achieve decarbonisation and greenhouse gas (GHG) emission reductions.
  • Lead the formation of a green industry-based ecosystem that promotes sustainability and raise awareness to support the government's targets for achieving Nationally Determined Contribution (NDC) and Net Zero in 2060, with a realistic and measurable roadmap and work plan.
  • Improve the competitiveness of the national steel industry by adopting sustainability principles and optimising the Indonesian Green Industry Standard, which would be recognised by all international green standards, and encourage competitive export activities.
  • Emerge as a leading community and centre of excellence for green industry by delivering world-class, environmentally friendly steel products and total solutions with transparent environmental disclosures, to consumers and investors worldwide.

The collaboration and information sharing between industry players is critical to reducing GHG emissions on a global scale as every product is linked to different industry players, and emissions are produced at each stage of the value chain. Steel manufacturing is a prime example of the key value chain as steel is a core building material that is traded between countries. The global steel industry is one of the drivers of pollution globally, contributing up to 4.1% of the world's total CO2 emissions and about 3.2% of all GHG emissions. [1] With more than 70% of global steel production operating in Asia, the industry must innovate to reduce direct and indirect fuel consumption and CO2 emissions[2]. An ambitious, long-term plan for the industry is crucial to achieving decarbonisation targets and reducing emissions.

"Decarbonisation and sustainability are ambitious goals that no single company can achieve alone. It requires the collaboration of every stakeholder across the value chain. Today's supply chains are more interconnected than ever. To achieve a more sustainable ecosystem, we need to align our goals and action plans in reducing GHG emissions. The recent FGD is a crucial step in bringing together diverse stakeholders and understanding their perspectives towards sustainability. By working together, we are determined to set Indonesia's steel industry as a standard for sustainability which can inspire other countries to follow suit. We are determined to lead this effort and look forward to working closely with like-minded industry players to build a cleaner future," said Kimin Tanoto, Member of the Executive Committee at GRP.

The Indonesian government has also articulated its plans towards sustainability and earlier this year, the country has reaffirmed its commitment to achieving its Enhanced Nationally Determined Contribution (ENDC) to reduce its emissions by approximately 31.9% unconditionally and achieve Net Zero emissions by 2060 or sooner. This is a goal which GRP and its partners are committed to supporting.

"Together with GRP, we have initiated the conversation around establishing a green ecosystem via the forum as a commitment between both steel companies to speed up and enhance the target of achieving net zero by 2060. GRP is our strategic supplier, and through our efforts we have supplied customers in over 16 countries, with sustainably produced steel, while staying compliant to the sustainability standards of each country" said Stephanus Koeswandi, Vice President, PT Tata Metal Lestari.

Following its recent sustainability initiatives, which include developing an ESG Strategy Handbook and reiterating their commitment to reducing GHG emissions via the Net Zero Roadmap, GRP envisions a future where low carbon steel will become a core building material in every infrastructure. As part of its ESG strategy, GRP has been working closely with suppliers in its supply chain to ensure compliance and alignment on ESG criteria and standards. GRP's Net Zero Roadmap outlines concrete steps towards decarbonisation, including fuel switching, green power sourcing, and carbon offsetting.



[1] World Resources Institute (WRI) Report 2007 "Slicing the Pie: Sector-Based Approaches to International Climate Agreements

Hashtag: #GunungRajaPaksi #ShapingTomorrow #Sustainability

The issuer is solely responsible for the content of this announcement.

About GRP

PT Gunung Raja Paksi Tbk (GRP) is part of the Gunung Steel Group, which is one of Indonesia's major private steel businesses. Our company began its operations in 1970 in Medan, North Sumatra, by producing hot steel, then progressed to manufacture steel beams and sheets.

With over 50 years of steel industry experience, GRP has a production capacity of 2,200,000 tons of high-quality steel annually approved by local and international certifying company.

Today, our company has become one of the largest private steel companies in Indonesia. Gunung Raja Paksi, "Shaping Tomorrow". Together we develop a better future.

For more information, please visit:

Today's Features at Auzzi

4 Benefits of Arranging Professional Conveyancing Services

The process of buying or selling can be complex and full of legal intricacies, which is why professional conveyancing services are recommended. A licensed conveyancer or solicitor can hel...

4 Benefits of Arranging Professional Conveyancing Services

The process of buying or selling can be complex and full of legal intricacies, which is why professional conveyancing services are recommended. A licensed conveyancer or solicitor can hel...

The Hibachi Birthday Surprise That Made My Sister Cry

The text from Mom came through at 10:37 AM: "Don't forget - your sister's birthday is tomorrow." Cue the panic. Not just any birthday - her 40th. And all I had planned was a sad grocery stor...

Buying in Sydney? Why You Need a Property Lawyer

Purchasing property in Sydney can feel like navigating a labyrinth. From deciphering strata reports to understanding complex contract clauses, the process is fraught with potential pitfall...

How to Spot a Great Caravan Deal

When you’re browsing caravans for sale, it’s easy to get overwhelmed by flashy features, limited time offers and endless specs. But whether you’re new to caravanning or looking to up...

About to Buy a Caravan? 3 Questions You'll Regret Not Asking

You’re stuck in traffic, a caravan beside you, driver looking considerably more relaxed than you are.  Your tea’s tipped onto your laptop bag and you’re running on fumes, anticipatin...

Are melatonin gummies safe? The Sweet Truth About Your Sleep Aid

Have you ever found yourself counting sheep that seem to have gone on strike while staring at the ceiling at 3 AM? You're not the only one. Every night, millions of people toss and turn, l...