The Times Australia
News From Asia

.

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

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:

Times Magazine

Building an AI-First Culture in Your Company

AI isn't just something to think about anymore - it's becoming part of how we live and work, whether we like it or not. At the office, it definitely helps us move faster. But here's the thing: just using tools like ChatGPT or plugging AI into your wo...

Data Management Isn't Just About Tech—Here’s Why It’s a Human Problem Too

Photo by Kevin Kuby Manuel O. Diaz Jr.We live in a world drowning in data. Every click, swipe, medical scan, and financial transaction generates information, so much that managing it all has become one of the biggest challenges of our digital age. Bu...

Headless CMS in Digital Twins and 3D Product Experiences

Image by freepik As the metaverse becomes more advanced and accessible, it's clear that multiple sectors will use digital twins and 3D product experiences to visualize, connect, and streamline efforts better. A digital twin is a virtual replica of ...

The Decline of Hyper-Casual: How Mid-Core Mobile Games Took Over in 2025

In recent years, the mobile gaming landscape has undergone a significant transformation, with mid-core mobile games emerging as the dominant force in app stores by 2025. This shift is underpinned by changing user habits and evolving monetization tr...

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

The Times Features

Flipping vs. Holding: Which Investment Strategy Is Right for You?

Are you wondering whether flipping a property or holding onto it is the better investment strategy? The answer isn’t one-size-fits-all. Both strategies have distinct advantages a...

Why Everyone's Talking About Sea Moss - And Should You Try It Too?

Sea moss - a humble marine plant that’s been used for centuries - is making a major comeback in modern wellness circles. And it’s not just a trend. With growing interest from athle...

A Guide to Smarter Real Estate Accounting: What You Might Be Overlooking

Real estate accounting can be a complex terrain, even for experienced investors and property managers. From tracking rental income to managing property expenses, the financial in...

What Is the Dreamtime? Understanding Aboriginal Creation Stories Through Art

Aboriginal culture is built on the deep and important meaning of Dreamtime, which links beliefs and history with the elements that make life. It’s not just myths; the Dreamtime i...

How Short-Term Lenders Offer Long-Lasting Benefits in Australia

In the world of personal and business finance, short-term lenders are often viewed as temporary fixes—quick solutions for urgent cash needs. However, in Australia, short-term len...

Why School Breaks Are the Perfect Time to Build Real Game Skills

School holidays provide uninterrupted time to focus on individual skill development Players often return sharper and more confident after structured break-time training Holid...