Chandra Asri’s Circular

Economy Effort for

Sustainability & Plastic Waste
Management

Government Relations & Circular Economy © 2022

Topics

• Chandra Asri Sustainability Commitment

• Circular Economy to Support Sustainability
• Chandra Asri’s Circular Economy Efforts

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Chandra Asri
Sustainability
Commitment
Chandra Asri Commitment in Sustainability
Chandra Asri is committed to maintain its market leader position, underpinned by its
commitment to the principle of triple bottom line: Planet, People, Profit, through
Environmental, Social, Governance (ESG) strategy. For us, embarking on the journey
of business sustainability means that we continuously improved performance and
create a harmonious living with our surrounding communities and the environment.

Enclosed Ground Flaring (EGF) Chandra Asri, working together Chandra Asri committed to
is capable of burning 220 tons of with Total Solar, started to power handling climate change by operate
hydrocarbons per hour that our buildings in our plant area with 53 units electric forklift since
operates during the plant startup solar energy. 2020.
process and if the conditions are
Our solar panel generates up to Through those initiative, it can
beyond the operating habits.
1,500 MWh annually, avoiding up reduce 69,445 kg of natural gas
The EGF is a manifestation of the to 1,080 tons CO2e/year. and 165,360 liters of diesel
Company’s commitment to Comparable to planting 18,000 usage, reduce 446,472 metric kg
sustainability by using the best trees annually. of carbon dioxide, and eliminate
available technology to minimize nitrogen oxide (NOx) exhaust
environmental impacts. gases.

For further information, please refer to Chandra Asri’s Sustainability Report 2021:
https://www.chandra-asri.com/files/reports/SR/Sustainability%20Report%20Chandra%20Asri%202021-.pdf 4
Integrated Production of Diverse Products
Chandra Asri’s products encompass a wide range across the consumer products value-chain, and its
leading position & strategic location enhances its competitiveness
Capacity (KT/A) Use (Examples)
Capacity
Polyethylene
(KT/A)
Naphtha (736)
Ethylene (900) Styrene
 Naphtha Monomer (340)
consumption of Merchant
2,500 KT/A at full market
capacity
Polypropylene
Propylene (490) (590)

Pyrolysis
Gasoline (418)

Synthetic Rubber
Feedstock (120)

Mixed C4 (330) Butadiene (137)

MTBE (128)
Raffinate-1 (183)
Butene-1 (43)
(as comonomer for PE)

Support Co-generation Utilities & Water Jetty

facilities plants facilities facilities facilities

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Circular Economy to
Support Sustainability
 Why We Need Circular Economy?
Indonesia did not have excessive consumption, need to managed waste properly
Plastic
Country
GDP/Capita
Cons.
• Jakarta: Today, Bantargebang
(USD) Landfill capacity already on
/Capita (kg)
Netherland 46,368 (13) 93.6 critical condition. (received waste
Germany 41,259 (19) 98.6 7,800 ton/day)
Japan 34,366 (25) 71.5 • Indonesia: 56% managed waste
South Korea 31,265 (28) 145.9
Malaysia 10,617 (68) 82.5
Thailand 6,199 (90) 71.6
Indonesia 3,757 (118) 21.6
Vietnam 2,656 (136) 46.6
North Korea 1,300 (178) 20.1

Source: Ourworldindata, Euromap, BPS import, INAPLAS internal, UN, kitabisa (2020)

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 CIRCULAR ECONOMY
What is Circular Economy?

As the economy grows,

we need more raw Today, our economies have
materials for the become so large that we have to
production of goods and question the wisdom of extracting The circular economy, aims to maximize
we produce more waste. more raw materials and dumping circular use of material to minimize
more waste. This current production of waste by recovering and
economy of “take-make-use- reusing as many of the products and
dispose” is called the linear materials as possible, in a systemic way,
economy over and over again.
Source: TU Delft University

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 End-to-end Ecosystem of Plastic Materials

Food Contact
Grade

Fossil Based Cracker Cold Section Polymer Plant Converter/

under study
Brand Owner
Olefin Mix, Bz/ Toluene Mix,
Fuel Gas
Coal co-firing

Purification

Gas

Purification
Coal Refuse
co-firing Derived Fuel Mechanical
Recycling
Solvent Based
Recycling
Oil

Energy Waste Sorting/

Substitution Incineration Material Recovery
Pyrolysis Facility (MRF) Consumer Usage

Fuel
Usage for operational factory or daily needs

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 Material Comparison and Its Impacts
Production Impact Life Cycle Analysis (LCA) *
PAPER VS PLASTIC
Source: TREE by product of OIL

Deforestation Oil exploitation

**

Source: bottledwater.org and Trayak, 2021

* Weight are for individuals 16.9 oz containers. Other value represent 1 million
Loss Animal Increase landfill 16.9 oz bottles, cartons, or cans each.
Residance needed ** Fossil Fuel Use unit was total quantity of fossil fuel consumed throughout the
life cycle. Visual representations of numerical values are not to scale.

On production side, plastic

was efficient on energy and
water used, also low
Decrease air quality Marine debris
emission

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 Environmental Impact Category in the Life Cycle of the Shopping Bags
Factor to determine environmental impact:
Material type, weight, number of used, energy use of production processes, waste management process.

Climate Change Acidification Eutrophication Ozone Impact Littering Potential

Best Worst Best Worst Best Worst Best Worst Best Worst
HDPE / Paper / HDPE / Paper / HDPE / Paper / HDPE / Paper / Paper / HDPE /
LDPE Cotton LDPE Cotton LDPE Cotton LDPE Cotton Cotton LDPE

Note:
• Reusable bags can be environmental superior to plastic bag, IF they are used many times (cotton bag needs to be used 50-
150 times to have less impact to climate compared to plastic bag)
• Paper bags that ends up in landfills cause emissions of methane with high climate change effect, while plastic bag is Need to
relatively inert
• Paper bags contribute less to the impact of littering but in most cases have a larger impact on the climate, eutrophication Changing
and acidification, compared to plastic bags consumer
• Plastic bags is poor option in terms of litter on land, marine debris, but it scores well in other environmental impact
categories, such as climate change, acidification , eutrophication, ozone impact
behavior

It can be concluded that reducing environmental impacts of bags is NOT just about choosing, banning, recommending or
prescribing specific materials or bags, but also about changing consumer behavior to increase the REUSE rate and to AVOID
LITTERING
Source: Tomas et al. UN and Life Cycle Initiatives: Single-use Plastic Bags and Their Alternatives. 2020

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Recycling Challenges on Plastics Circular Economy

Technical Infrastructure Consumer Regulation

Use multiple Insufficient Behavior Lack of law
materials makes Collection and Bad habit and enforcement.
difficult to recycle Sortation unclear communities are
#Pilah Sampah messaging still littering
SOLUTIONS

Redesign Waste End-to-end

Packaging Segregation Ecosystem

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Chandra Asri’s
Circular Economy
Efforts
Please see the video through this link: https://youtu.be/VCItEeI0pVM

Video ce

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Chandra Asri’s Efforts To Promote Circular Economy
1. Asphalt Plastic Road 2. Support JRC Progam by DLH 3. End-to-end Plastic Waste Management System
Enhance up Jakarta Setup plastic waste management based on Circular
to 40% road Support Jakarta Recycle Center (JRC) Economy concept in Cilegon, collaboration with local
stability by at Pesanggrahan, program by DLH DKI community organization. Collected plastic waste will sell
using 4-6% Jakarta, by provide segregated waste to Recycle Industry and become ‘plastic fuel’ for several
shopping bag plastic bag, and education materials to usage by community. Implementation will include marine
plastic waste minimize waste to landfill. Target to debris collection by local fisherman, to be converted to
into asphalt collect from 200,000 houses with gasoline-plast to substitute gasoline/diesel for fishing
mixture. This initiative is inline with potential managed waste up to 48,000 activities
Indonesia’s President Decree No. Tons/Year by 2023.
83/2018. We aim to achieve 100 KM • IPST ASARI
by 2023. A waste
managem
ent center
Implementation Status Avoid up to
(end 2021)
at Serdag,
80% Cilegon
waste to which cover waste
50.8 KM landfill collection from 1 sub-
using *(from location district. This place is an
37.5 intervened by
Chandra Asri, integrated waste • SAGARA
Million pcs
May 2021) management area, under Collaboration with Fisherman
the guidance of Chandra to collect plastic marine
Asri that empowers local debris when they were
communities. IPST fishing, to support Government
ASARI was equipped with target to reduce marine debris. Collected plastic
Pyrolysis machine to waste will be sent to IPST ASARI to further
manage low value plastic segregation and pyrolysis process. Fuel Plast
after waste become Fuel Plast result will be used by Fisherman for fishing and
before
for community usage. reduce their fuel cost needed.
Location: Ozone

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