AMITA Group to Start Closed-Loop Resource Recycling in Indonesia under Joint-Venture Arrangement with Salim Group and Subsidiary of Indocement : Marking another step toward establishing a solid foothold in a growing market for circular materials.

AMITA CIRCULAR DESIGN SDN. BHD. (ACD, AMITA Group's Malaysia-based regional headquarters for Asia-Pacific) today announced that it has in principle agreed with PT Tamaris Prima Energi (TPE) to establish a joint venture, named PT Amita Tamaris Lestari (JV1), in Indonesia aiming later in the month. The venture is tasked with developing circular, carbon-neutral business models in Indonesia and elsewhere in Southeast Asia. TPE is part of the Tamaris-Moya Group, which is engaged in the renewable energy and public water supply businesses in Indonesia and is part of the Salim Group, one of the largest conglomerates in Southeast Asia, encompassing a diverse group of companies in the food, retail, automobile, real estate, and public infrastructure industries.

ACD further announced that it has in principle agreed with PT Sari Bhakti Sejati (SBS) that JV will establish a joint venture, named PT Amita Prakarsa Hijau (JV2), in Indonesia in late September 2024, to be engaged in the closed-loop resource-recycling business. SBS is a subsidiary of PT Indocement Tunggal Prakarsa Tbk. (Indocement), which is a leading cement producer in Indonesia. As a first step, JV2 will file with the Indonesian regulatory authorities for a license and permit to operate a resource-recycling business. Once approved, JV2 will start building a resource-recycling plant in Indonesia, scheduled to become operational by the end of 2027.

In addition, JV1 will tap into a broad cross-industry network of businesses operated by the Salim Group to lay a solid groundwork for pursuing a bigger objective of achieving the circular management of resources in Southeast Asia.

1. Background

ACD started recycling industrial waste into cement alternative materials and fuels and supplying them to the cement industry in Malaysia in 2017. Riding on the successful operations in Malaysia, the company has been exploring an opportunity to expand its business into Indonesia.

Indonesia is the world's eighth-largest emitter of CO2. The government is committed to reducing 32% of its national GHG emissions against the business-as-usual scenario by 2030 as a step toward achieving net-zero emissions by 2060 or sooner. In Indonesia, fast-paced population and economic growth has been driving and will likely continue to drive surging industrial demand for cement products to sustain the development of public infrastructure. As cement production is the second-largest industrial emitter of CO2 in the country, its low-carbon transformation is critical for the country to achieve the stated goal of carbon neutrality by 2060. (Indonesia ranked fifth in the world in the consumption of cement products in 2020 and sixth in their production in 2021)

Since 2023, the AMITA Group has been partnering with Indocement-which has been pursuing environmentally friendly business operations in Indonesia-in conducting a joint feasibility study on a business case for the closed-loop recycling of resources in the country (see an AMITA HOLDINGS press release available here). The study has verified the market in Indonesia for an AMITA-provided closed-loop resource recycling service, which is expected to help reduce CO2 emissions associated with the disposal of industrial waste and the production of cement, and has led to the in principle agreement between the AMITA Group and SBS to form a joint venture to pursue this business.

The AMITA Group has also in principle agreed with the Salim Group, which has a stake in Indocement, to establish JV1, which combines AMITA's proprietary technologies and solutions for sustainable business operations with Salim Group's broad network of diverse businesses to develop a new business that provides comprehensive solutions for circular economy, carbon neutrality, and nature positivity in the region.

2. Schedule

JV1 and JV2 will work together to prepare to launch a business in Indonesia of recycling industrial and municipal waste, as well as biomass-derived materials, into value-added cement alternative materials and fuels and supplying them to the cement industry. More specifically, JV1 and JV2 will negotiate with Salim Group companies and Japanese subsidiaries operating in Indonesia about supplying their industrial waste to JV2 for recycling. The two ventures will file with the Indonesian regulatory authorities for a license and permit to operate a resource-recycling business and will build a resource-recycling plant in Indonesia, scheduled to become operational by the end of 2027.

How our closed-loop resource-recycling business works in Indonesia

• JV1 acquires and maintains an 80% stake in JV2, which operates the resource-recycling business.
• JV2 returns to JV1 as dividends portion of the profit to be gained from producing and supplying cement alternative materials and fuels derived from industrial and municipal waste and biomass materials.

3. Company overviews

(1) Joint ventures

JV1

JV2

(2) Joint venture partners

JV1: PT Tamaris Prima Energi, a corporate investment arm of the Tamaris-Moya Group

JV2: PT Sari Bhakti Sejati, a corporate investment company wholly owned by Indocement

• Salim Group
  One of the largest conglomerates in Southeast Asia that encompasses a diverse group of companies in the cement, automobile, public infrastructure, agriculture, food, retail, and financial industries. Maintains a stake in the Tamaris-Moya Group and Indocement.
• Tamaris-Moya Group
  Part of the Salim Group. Invests primarily in the renewable energy and public water supply businesses in Indonesia.
• Indocement
  A leading cement producer in Indonesia. Produces and markets cement products under the Semen Tiga Roda brand. Majority-owned by the German-based Heidelberg Materials, which is one of the largest building-materials companies in the world. Will use cement alternative materials and fuels produced by JV2.

For public relations and press enquiries, please contact

AMITA HOLDINGS CO., LTD.
PR Team：Ms. IGUCHI / Ms. KOMAI
Email： press@amita-net.co.jp

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