The coating industry is not just about color and aesthetics. Behind every layer of paint lies a complex supply chain involving raw material suppliers, manufacturers, distributors, and end users. This industry significantly contributes to the national economy and employs tens of thousands of workers. However, sustainability challenges are becoming increasingly evident.

Dependence on imported raw materials, the use of environmentally risky substances, and growing market demand for eco-friendly products are pushing the coating industry to transform. This is where the concept of ESG (Environmental, Social, Governance) becomes highly relevant.

What is ESG and Why Does It Matter?

ESG is a business approach that balances three key aspects:

• Environmental: Reducing environmental impact, such as emissions, waste, and energy consumption.
• Social: Ensuring workplace safety, community engagement, and consumer education.
• Governance: Transparent, compliant, and accountable corporate governance.

Based on recent research (Pujiyono & Suroso, 2025), involving 170 coating industry players in Indonesia, companies that consistently implement ESG demonstrate better business performance. Strong governance drives improvements in environmental and social practices, which ultimately have a positive impact on profitability and demand for eco-friendly products.

Key Insights from the Field

Several important findings include:

• Companies that are transparent and compliant with regulations tend to gain higher market trust.
• The use of water-based products and energy efficiency enhances both brand image and cost efficiency.
• Digitalization of production processes helps reduce waste and improve competitiveness.
• Consumers are increasingly choosing environmentally friendly products.

However, challenges remain. The cost of green technology is still relatively high, and the readiness of smaller suppliers is uneven. Therefore, collaboration among industry players is essential.

ESG: Not a Cost, but an Investment

Many assume sustainability means additional costs. In reality, ESG helps companies:
✔ Reduce business risks
✔ Improve operational efficiency
✔ Strengthen brand reputation
✔ Attract investors and business partners
✔ Remain resilient amid global uncertainty

In other words, ESG is not just a trend, but a long-term strategy.

Time to Move Forward Together

Indonesia’s coating industry has a great opportunity to become more independent, efficient, and sustainable. By committing to ESG practices, companies not only protect the environment and society but also strengthen their own business foundations.

In the future, success will not only be measured by sales volume, but also by the positive impact created.

Because the future of industry is not only about beautiful colors, but also about responsible footprints.

References:

Pujiyono, R., & Suroso, A. I. (2025). An ESG-Oriented Sustainable Business Model for the Paint Industry Supply Chain in Indonesia. Sustainability (Switzerland), 17(3741), 1–34. https://doi.org/10.3390/su17083741