LPKR Reinforces ESG Commitment Through Waste Recycling Initiatives

Jakarta, 19 September 2023 - PT Lippo Karawaci Tbk. (LPKR), Indonesia’s leading real estate and healthcare platform by revenue, is committed to implementing integrated waste management practices, including recycling initiatives, across its urban developments and managed properties. In pursuit of this commitment, LPKR collaborates with third parties to advance recycling efforts and accelerate its waste diversion strategies through aligned partnerships and public recycling campaigns. These efforts aim to divert as much waste as possible from landfills.

In 2022, LPKR successfully diverted 1,435 tons of waste across its business units. Siloam, LPKR’s healthcare arm, significantly expanded its recycling initiatives, increasing participation from 6 hospitals in 2021 to 19 hospitals in 2022. LPKR has set a target to double its total diverted waste to 2,800 tons by 2030. To achieve this, the Company is developing a structured stakeholder engagement plan throughout its value chain.

For inorganic waste, LPKR collects recyclable household waste, such as plastic, paper, cardboard, aluminum, and glass bottles, across the majority of its properties. It has also initiated studies to quantify used cooking oil (UCO) waste and is exploring UCO recycling partnerships with key tenants.

Regarding organic waste, LPKR properties conduct composting of landscape waste to produce fertilizer for plant nurseries and landscaping activities. Additionally, small-scale food waste composting initiatives have been launched, alongside research into using Black Soldier Fly technology to process other organic waste. In the healthcare sector, Siloam recycles medical waste such as syringes, chemical bottles, and IV bags, all of which are sterilized in compliance with regulatory standards. Expired medicines are returned to pharmaceutical vendors for responsible disposal.

LPKR has also partnered with external organizations to support its recycling programs. In Lippo Village, the company collaborated with waste management start-up Rekosistem to pilot a waste sorting and recycling project. This initiative provided valuable insights into the types of inorganic waste generated and enabled LPKR to enhance recycling rates in its commercial properties and schools.

By the end of 2022, participation in this pilot increased from 4 sites in 2021 to 13 sites. Through this program, a total of 9,455 kilograms of inorganic waste were recycled, achieving a 92% conversion rate for sorted waste such as paper, cardboard, glass, plastic, metal, and e-waste.

LPKR Group CEO John Riady stated that the company is deeply committed to creating a clean and sustainable environment for all stakeholders. Effective waste management is essential, given the volume of waste generated from both our business operations and our customers’ and tenants’ daily activities. Our approach focuses on maximizing resource efficiency, reducing waste generation, and increasing recycling rates in support of a circular economy.