LPKR Commits to Integrated Waste Management

Jakarta, 17 July 2023 - PT Lippo Karawaci Tbk. (LPKR), Indonesia’s leading real estate and healthcare platform by total revenue, is committed to implementing integrated waste management across its urban and property developments, with the goal of creating a clean and sustainable environment for all stakeholders. LPKR Group CEO, John Riady, emphasized the importance of waste management, given the volume of waste generated through business operations, as well as customer and tenant activities. “Our waste management approach focuses on maximizing resource efficiency, reducing waste generation, and increasing recycling rates to support a circular economy,” said John.

Given its diverse operations, LPKR handles various types of waste, including household waste from commercial and residential areas, medical waste from hospitals, landscaping waste from township management, and construction waste from ongoing development projects. LPKR’s waste management policies and SOPs provide clear guidance on proper collection and disposal methods for each waste type, in full compliance with local laws and regulations. The company also partners with municipal waste services and third-party vendors for regular waste collection and disposal across its operational areas.

In 2022, LPKR-managed assets and areas generated approximately 54 kilotons of waste, including 52 kilotons of non-hazardous (non-B3) waste and 2 kilotons of hazardous (B3) waste. The majority of this waste originated from tenants and contractors. “We are currently working with vendors to improve waste reporting processes and data accuracy, allowing us to systematically track generated waste and identify areas for improvement,” John added.

Non-B3 waste is typically collected and sorted on-site by asset managers and the Township Management Division (TMD) before being transported by vendors to local temporary waste disposal sites (TPS). To reduce environmental impact, LPKR actively involves local communities in improving waste management practices at TPS sites, including funding and infrastructure support where needed. For example, in 2022, LPKR invested approximately IDR 100 million to clean and enhance a local TPS in the Tanjung Bunga area of Makassar. Hazardous waste (B3) is also a by-product of LPKR’s operations, with the healthcare business contributing approximately 72.3% of the total in 2022. LPKR has implemented strict protocols and guidelines to ensure the safe and compliant management of hazardous waste, recognizing the serious risks to health, safety, and the environment from improper handling.

John stated that LPKR partners with licensed vendors who are responsible for the transport, processing, and disposal of hazardous waste. These vendors are carefully selected based on their track record, expertise, and compliance with B3 waste regulations. Some of LPKR’s commercial and industrial tenants may also engage their own vendors to directly manage hazardous waste generated from their operations.

At Siloam Hospitals, for instance, all medical and potentially infectious waste, such as those generated during COVID-19 treatment, is handled with special care. Non-recyclable hazardous waste is collected by third-party vendors and incinerated. In Lippo Cikarang, a dedicated wastewater treatment facility processes industrial liquid waste before safe discharge, while sludge residue is collected by licensed vendors for treatment and disposal. For construction waste, LPKR’s project development team partners with contractors to ensure responsible hazardous waste handling. Licensed vendors are appointed to collect hazardous waste directly from project sites, minimizing environmental impact from construction activities.

LPKR also emphasizes waste prevention and reduction across its operations, including the support and enforcement of local regulations banning single-use plastic bags in provinces such as Jakarta and Bali, alongside tenants and visitors. “We recognize the importance of reducing reliance on single-use plastics and have taken significant steps to minimize their use within our operations,” said John. Since 2022, all Aryaduta Hotels have replaced single-use plastic containers for soap, shampoo, and conditioner with refillable dispensers. This initiative alone successfully reduced plastic use by 256 kg in 2022.