Analysis of the Implications of Implementing Sustainable Economic Innovation in 3 (three) Cement Companies Listed on the Indonesia Stock Exchange (IDX) for the Period 2022-2024

Abstract

The implementation of sustainable economic innovation is an action that supports sustainable development, which not only prioritizes profit but also considers the social and environmental impacts resulting from the company's production and operational processes. By implementing sustainable economic innovation, it’s hoped that it will lead to increased income with minimal environmental damage and social impact. Currently, the implementation of this innovation is being carried out across all business lines, including cement companies. Cement companies in Indonesia have a negative impact on the environment and society, therefore, sustainable economics must be considered when conducting business. The research results showed an increase in revenue for the 3 (three) companies that implemented sustainable economics: PT Semen Indonesia (Persero) Tbk, PT Indocement Tunggal Prakasa, Tbk, and PT Cemindo Gemilang, Tbk. These three companies were selected based on the criteria of being cement companies listed on the IDX with comprehensive sustainability reports and actively implementing sustainable innovations in their operations. Besides the impact of increased revenue, it also has an impact on the reduction of waste generated. One of the methods was to convert the waste produced into fuel and alternative raw materials and extend the product lifecycle. The data collection method used literature study based on the company's annual reports, sustainability reports, and publications related to sustainable economic innovation. The high initial investment and excess production capacity are challenges faced by the company in implementing sustainable economic innovation.