AMITA HOLDINGS Agrees with Indocement Tunggal Prakarsa on Jointly Conducting Feasibility Study on Pursuing Carbon-neutral, Circular Business Models in Indonesia

AMITA HOLDINGS CO., LTD., a preeminent Japanese provider of circular and sustainability solutions and services, today signed a memorandum of understanding (MOU) with PT Indocement Tunggal Prakarsa Tbk. ("Indocement"), a leading cement producer in Indonesia, on conducting a joint feasibility study. The scope of the study agreed upon in the MOU includes assessing the feasibility of developing and promoting carbon-neutral, circular business models in Indonesia, as a basis for pursuing a business partnership between the two companies in the country.

Signing ceremony

1. Overview and Objectives of the Signed MOU

Overview

• Duration: From May 19, 2023, through May 31, 2025
• Scope: Assessing the feasibility of developing and promoting carbon-neutral, circular business models in Indonesia. The first phase of the study, which is scheduled to complete by December 31, 2023, is focused on evaluating the business feasibility of collecting industrial and municipal waste and converting it into alternative fuels and materials for commercial use, and building a business case based on findings.

Objectives

In Indonesia, the majority of industrial and municipal waste is disposed of at landfill sites, which raises environmental concerns among the public and policy makers. Making more efficient use of resources is an important first step toward achieving a carbon-neutral society. To address these issues, the AMITA Group has agreed to join forces with Indocement, one of the largest cement producers in Indonesia, to conduct a feasibility study on pursuing a business partnership between the two companies in the country.

In addition, the two companies are considering extending the commercially successful circular solutions that the AMITA Group has been offering in Japan to Indonesia to enhance corporate and community sustainability in the country. Proposed circular solutions include MEGURU STATION®¹, a resource-collection site that promotes mutually supportive engagement among community residents, and Cyano Project², which assists businesses in developing and establishing carbon-neutral, circular business models.

^1. Click here to learn more about MEGURU STATION^®.
^2. Click here to learn more about Cyano Project.

2. Background

Indonesia's population reached approximately 270 million by 2021, making it the fourth largest in the world. Furthermore, since around 2010, the ratio of urban population has exceeded that of rural population, and people have been migrating to large cities, especially the capital Jakarta. Population growth and urbanization are expected to continue in the future, and demand for cement is also expected to grow in line with rising construction demand for housing and commercial facilities (cement consumption in 2020: 5th in the world; production in 2021: 6th in the world). However, cement production is the second largest emitter of CO2 by industry (see figure), and Indonesia is the world's eighth largest emitter of CO2.

Indocement is majority owned by the Germany-based Heidelberg Materials, which is one of the world's largest manufacturers of building-materials－such as cement, aggregates, and ready-mixed concrete－and is known for aggressively pursuing zero-emission business operations around the globe. Indocement was looking for a corporate partner with extensive expertise in carbon-free sustainability solutions so that the company can step up its efforts to promote environmentally sustainable business operations.

The AMITA Group has been at the forefront of the environmental solutions industry in Japan for more than 45 years. Since 1992, the Group has been converting industrial waste 100% into alternative cement fuels and materials. This is part of our efforts to reduce the amount of industrial waste to be incinerated and disposed of at landfill sites, preserve natural resources, and assist cement producers in reducing CO₂ emissions from their operations. We are also one of the first companies in Japan to provide businesses with professional assistance in corporate sustainability, including assistance in developing and implementing a transition strategy for circular business models, as well as consultation on carbon-free business operations that meet stringent international standards. The Group has a subsidiary in Malaysia and has been pursuing business opportunities in Indonesia over the past few years. The joint study agreed upon under the MOU between the AMITA Group and Indocement, therefore, serves the business interests and needs of the two companies.

The scope of the study includes jointly assessing the feasibility of applying AMITA's industry-leading technologies and expertise to developing and promoting carbon-neutral, circular business models in Indonesia. The first phase of the study, which is scheduled to complete by December 31, 2023, is focused on evaluating the business feasibility of collecting industrial and municipal waste and converting it into alternative fuels and materials for commercial use in Indonesia and elsewhere.

Source:
"Direct CO2 Emissions from Industry in the Net-Zero Scenario, 2000-2030," published by the International Energy Agency

3. Comments by Signed Parties

SUETSUGU Takahide, President and Chief Integrated Operations Officer of AMITA HOLDINGS, said:

"The AMITA Group has been recycling industrial waste into usable resources in Malaysia since 2017, as part of its efforts to achieve a sustainable society. We are excited about the opportunity to work with Indocement to jointly launch a similar business operation in Indonesia to promote carbon neutrality and achieve a sustainable society in the country. We hope this collaboration will be an important stepping stone for us to extend our circular solutions and services to other parts of the world and expand the global scope of an ecosystem society in which people, nature, tangibles, and information are interconnected."

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Christian Kartawijaya, President Director of Indocement, said:

"Indocement is company that consistently implements principles and values of Environment, Social and Governance (ESG); hence we have an ambitious target for the company CO2 emission reduction. Therefore, with this mutual collaboration, we are confident that we can fulfill the given carbon neutrality target and beyond. At the same time, we are also reducing our dependence of natural resources and supporting other industries in Indonesia with a sustainable way of disposing their waste by means of waste utilization technology which also promoting circular economy in Indonesia."

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