Environmental Social and Governance (ESG) Committee

The ESG Committee was established as a form of the Company’s commitments to sustainable development in social, economic, environmental, and governance aspects. The ESG Committee, which was established based on the Board of Directors’ Decision Letter No. 020/Kpts/DIR/ITP/XI/2021, has a duty to ensure the alignment of Indocement’s business practices with the vision of environmental preservation, particularly in increasing long-term corporate values and promoting strategic ESG management.


  1. Indonesia’s 2030 SDGs roadmap published by the Ministry of National Development Planning/National Development Planning Agency.
  2. Sustainable Finance roadmap in Indonesia published by the Financial Services Authority.
  3. Indonesian Corporate Governance roadmap published by the Financial Services Authority.
  4. HeidelbergCement Group’s 2030 SDGs roadmap.
  5. The Company’s Board of Directors meeting on 22 October 2021


The composition of ESG Committee’s members is as follows:

The duties and responsibilities of the ESG Committee are:

  1. Preparing direction and formulating effective strategies in relation to ESG Matters, and recommending policies, action plans, and disclosures in line with the strategies;
  2. Preparing harmonious ESG systems, while aligning ESG objectives and targets;
  3. Providing necessary support to ensure the implementation of ESG quality improvement programs;
  4. Performing duties relevant to ESG Committee objectives as requested by the Board of Directors from time to time;
  5. Supervising ESG program implementation and managing the risks and impacts of ESG programs in the Company;
  6. Assessing overall ESG program implementation and determining opportunities for improvements;
  7. Reporting to the Board of Directors at the end of each financial year, on the implementation of ESG Committee work along with the ESG program achievements in the Company and recommendations related to the Company’s ESG programs.

Implementation of ESG Committee’s Duties
Before ESG terminology became a trend, the Company had implemented sustainable business practices that observe the environmental, social, and governance aspects. The ESG Committee performs its role as a catalyst within the Company. In 2022, the ESG Committee coordinated and supervised the Company’s ESG aspects. The ESG Committee holds concern discussions and increases the information disclosure related to ESG and management. We constantly monitor the ESG scores issued for Indocement and the industry by ESG rating agency, and actively provide input and additional information to maintain and further improve our position.
We also ensure compliance with environmental reporting by the Company’s operational business process for its three lines of business (Cement, Aggregate, and Ready-Mix Concrete) to the Government and HeidelbergCement Group as the holding company.