IMPLEMENTATION of the concept of sustainable development based on the environment, social and governance (Environmental, Social, Governance/ESG) is now an important pillar in assessing the performance of the property business in Indonesia.
ESG is used as an indicator for reporting non-financial activities of property development projects, assessing the environmental and social impacts of the investment.
In recent years, ESG implementation has become a major focus for property developers in the country, in line with changing consumer trends that are increasingly moving towards sustainable products.
According to the Secretary General of the Indonesian Planning Experts Association (IAP) Ardiadi Dimastanto, the largest and most potential market for property projects today is Generation Z and Millennials.
“This segment really cares about products that prioritize sustainability. They tend to pay attention to the details of the facilities around the property project, such as green open spaces, interaction spaces, and sports facilities,” said Ardiadi at the event. Elevee Media Talk in Alam Sutera, Tangerang, Wednesday (24/7).
Ardiadi added that the implementation of ESG principles is not only beneficial for environmental sustainability and good governance, but also provides significant economic benefits.
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“ESG principles provide investment benefits by increasing property values and benefiting consumers,” he said.
Chief Marketing Officer (CMO) Elevee Condominium Alvin Andronicus revealed that the ESG principles applied by their company are not just slogans, but have been concretely implemented.
“The implementation of ESG has positive impacts, such as reducing operational costs, saving energy, and improving the health and productivity of residents,” explained Alvin.
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For example, Elevee Condominium uses windows double glass to reduce sunlight entering the room, thereby reducing the need for air conditioning.
In addition, Elevee also has facilities forest park covering an area of 4 hectares which supports various activities, as well as
implementing environmentally friendly concepts such as green tunnels and traffic management to create a comfortable atmosphere for residents.
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Ardiadi acknowledged that developing city-scale properties with ESG principles requires a lot of funds.
However, he stressed that while the initial costs were high, the long-term benefits were enormous.
“Sustainable development like Alam Sutera requires huge investment, but it will benefit consumers as property values will continue to increase,” he added.
He also emphasized the need for further socialization regarding the implementation of ESG principles among property developers to ensure that this concept is widely accepted and implemented. (Z-10)
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