Evaluation of the Implementation of Environmental, Social, and Governance (ESG) Standards in the Management and Utilization of FABA Waste in the National Energy Industry
Evaluasi Penerapan Standar Environmental, Social, Governance ESG (ESG) dalam Pengelolaan dan Pemanfaatan Limbah FABA pada Industri Energi Nasional
DOI:
https://doi.org/10.21070/ups.8865Keywords:
Enviromental Social Governance, Fly Ash Bottom Ash, Waste Management, Circular Economy, Power PlantAbstract
The surge in national electricity consumption has significantly increased the volume of coal combustion waste,
particularly Fly Ash and Bottom Ash (FABA), posing serious environmental risks if not managed sustainably.
Although the regulatory status of FABA has shifted from hazardous (B3) to non-hazardous waste through Government
Regulation No. 22 of 2021, its external utilization remains remarkably low. This condition underscores the urgency
to design strategic approaches that transcend technical solutions and embed holistic sustainability principles, notably
through the Environmental, Social, and Governance (ESG) framework. This study aims to analyze the key ESG-related
factors that influence external demand for FABA utilization, identify both opportunities and constraints faced by
stakeholders, and formulate a sustainable management strategy applicable and replicable across power generation
facilities. Employing a mixed-method approach, the study combines quantitative analysis through Exploratory Factor
Analysis (EFA) involving 115 respondents, and qualitative exploration via in-depth interviews with representatives
from the power plant and local government. The findings reveal two dominant factors: Infrastructure and Support for
FABA Utilization, and Promotion and Regulation of FABA. Additionally, five major challenges are identified:
economic constraints, infrastructure gaps, regulatory barriers, weak socialization, and lack of multi-stakeholder
synergy. The originality of this research lies in the systematic integration of ESG principles into the formulation of a
circular economy strategy for FABA waste management, offering an inclusive, adaptive, and practical model for the
national energy sector.
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