Jakarta, 7 May 2025 – The logistics industry is currently facing the challenge of transformation. As the negative impacts of climate change continue to grow, the industry is increasingly driven to adopt sustainability principles across all aspects of its operations. The “Indonesia Energy Transition Outlook 2025” report released by the Institute for Essential Services Reform states that freight transport contributes 28.1% of total emissions in Indonesia’s transportation sector. The majority of freight activities still rely on road transport, making this subsector one of the most challenging to decarbonize. To address this issue, the Ministry of Transportation of the Republic of Indonesia has expressed its commitment to implementing green logistics through various initiatives, such as studies on truck fleet modernization schemes, integration of road and rail-based logistics transportation modes, and the replacement of old trucks with more environmentally friendly vehicles.
SCG, the leading regional business, recognizes the importance of implementing sustainability principles across all aspects of its operations in every business location, including Indonesia. Through its subsidiary, SCG Barito Logistics, SCG applies the concept of green logistics with a sustainable approach to reduce negative environmental impacts and support the company’s operational efficiency.
Warit Jintanawan, Country Director of SCG in Indonesia, stated, “At SCG, we recognize that operational activities within the logistics industry significantly contribute to greenhouse gas (GHG) emissions. Through SCG Barito Logistics, we are implementing various strategic initiatives to strengthen a sustainable supply chain system in Indonesia. Our hope is that SCG can empower the customers to also contribute in achieving the Net Zero target by 2050 through decarbonization efforts in the logistics sector, for a greener future”.
Green Logistics Implementation from SCG in Indonesia
SCG Barito Logistics is one of SCG’s subsidiaries, established in 2017 as a result of a joint venture between SCGJWD Logistics Public Company Limited and PT Barito Investa Prima. By combining SCG Group’s expertise in implementing green logistics at the regional level with the local insights of Barito Pacific Group, SCG is committed to providing integrated logistics solutions and product transportation services across Indonesia. To support SCG’s Net Zero vision, SCG Barito Logistics has implemented a range of initiatives to curb emissions, particularly those within Scope 1, 2, and 3. These efforts include setting reduction targets of 30% by 2027, 40% by 2030, and ultimately reaching Net Zero emissions by 2050.
Preeda Phothisuwan, President Director of SCG Barito Logistics, emphasized the importance of the company’s core values in guiding its business operations. “At SCG Barito Logistics, it has been our commitment to accelerate the transition towards a more environmentally friendly supply chain system. We believe that responsible environmental practices lay the foundation for a resilient and sustainable business in the long term,” said Preeda.
To fulfil its commitment to reduce emission in Indonesia’s logistics industry, SCG Barito Logistics and SCGJWD has initiated a series of concrete steps to build an environmentally friendly logistics system. These initiatives encompass a range of strategic approaches, including:
- Utilization of Environmentally Friendly Fleet
SCG Barito Logistics operates 60 low-emission trucks that comply with Euro 4-5 Emission Standards in the 10-wheel open-side box truck. By deploying this type of fleet, the company has successfully reduced carbon dioxide emissions by 16% compared to its previously used fleet.
- Using EV Forklifts to Reduce Emissions
A total of 61 Electric Vehicle (EV) forklifts have been deployed across 4 main warehouses in the Banten area. This operational shift has enabled the company to reduce carbon dioxide emissions by approximately 87 tons CO2 per year.
- Utilizing Multimodal Transportation
SCG Barito Logistics leverages domestic rail transport to ship its products. Currently, the company transports up to 40,000 metric tons annually across Java Island. This shift to rail freight has resulted in a carbon dioxide emission reduction of 3,700 tons.
- Optimizing the Backhaul Matching System
SCG Barito Logistics implements a logistics backhaul matching system, aligning return shipments (backhauls) with available land transport on the same route to reduce empty-load trips and maximize delivery efficiency. This system has allowed the company to optimize 4,000 shipments across Indonesia.
- Eco-Friendly Proof of Delivery Innovation
Developing an innovation called e-Pod (Electronic Proof of Delivery), a digital delivery proof documentation technology currently in the development stage. According to the company’s estimate, this digital innovation is expected to save up to 200,000 sheets of paper per year.
Through these concrete steps, SCG Barito Logistics is committed to becoming a leader in the green logistics industry by introducing innovations that support the creation of a more environmentally friendly freight transportation system in Indonesia.
The commitment, vision, and business strategy of SCG Barito Logistics are in line with the ESG 4 Plus commitment, a business principle from SCG that focuses on four main pillars: Achieving Net Zero Emissions by 2050, Realizing a Green Industry (Go Green), Reducing Inequality, and Embracing Collaboration, with fairness and transparency as the foundation of every operation.
“Since starting operations in Indonesia, we have developed various strategies and breakthroughs that integrate eco-friendly technologies, optimize freight transportation, and enhance digital operational systems. We will continue this commitment to achieve efficiency while reducing GHG emissions, and support the government in realizing a green logistics system in Indonesia,” concluded Preeda.
***
Tentang SCG
SCG merupakan pemimpin bisnis regional dengan lini bisnis utama; Cement & Green Solutions, Smart Living, Decor, Distribution & Retail, Packaging, Chemicals, Cleanergy (Clean Energy), Logistics, Deep Technology & Digital, dan Investment. SCG berupaya menjawab kebutuhan yang beragam dari pelanggan melalui kemitraan kolaboratif dan pengembangan produk, layanan, dan solusi yang inovatif.
SCG memulai operasi bisnis di Indonesia sejak 1992 dengan membuka perdagangan dan secara bertahap mengembangkan investasinya dalam bisnis yang berbeda pada industri semen, bahan bangunan, bahan kimia, dan kemasan. Hingga hari ini, SCG memiliki total 36 perusahaan di seluruh Indonesia dengan lebih dari 9.000 karyawan.
Untuk informasi lebih lanjut, hubungi:
Amanda Utari
Brand and Communications Assistant Manager – PT SCG Indonesia
Phone: +6281110689798, Email: amandadwi@scg.com
