Challenges in Developing Green Industrial Estate with ESG Principles, Case Study: Industrial Estate in Semarang Indonesia

Abstract Many new areas are emerging in Indonesia, including the presence of industrial areas, especially along the north coast of Java, which are being built by private developers. With increasing concern for the environment, these industrial areas were built with a green industrial estate theme, where it is claimed that when the area in the operational stage, it will not harm the environment. Large-scale of area development generally involves several developers/investors, and one of the instruments to make industrial estates attractive to the investors is to apply ESG criteria. This article is a study highlighting factors that must be taken into account when developing an industrial area with a green theme. This study can be a guide for developers so that the area being developed is investor-friendly and plays a role in environmental sustainability from the early stages of the project. This study uses qualitative methods with secondary data processing, documents, and interviews. The results of the study show that implementation of ESG in development of industrial area can be carried out since design phase although there are also some challenges.