51探花

The strategy addresses the steel industry's challenges in reducing energy consumption and environmental impacts while maintaining business feasibility. By integrating production efficiency and circular economy principles, the proposed solution has the potential to help companies conserve resources, minimize material waste, and create new business opportunities from production by-products. These benefits are particularly relevant to efforts to develop a more efficient and sustainable industrial sector.

Team KCIC consists of Annisa Sofianis, Keith Aurelio Saragih, and Canggih Effendi, all undergraduate students from 51探花's Industrial Engineering Study Program, class of 2023. The three developed their solution based on a case study involving PT Baja Perkasa Sentosa (BPS Steel) as part of a competition organized by the Civil and Environmental Engineering Student Association (HIMATESIL) of IPB University.

The competition brought together five finalist teams tasked with developing business and environmental solutions through data-driven analysis. The final round was held on October 9, 2026, at the Abdul Moeis Nasoetion Auditorium, IPB University, Bogor, followed by the announcement of the winners on October 10, 2026, at the Graha Widya Wisuda Building.

Integrating Energy Efficiency and the Circular Economy

^{Team KCIC wins first place in the Business Case Competition category at the Indonesian Civil and Environmental Festival (ICEF) 2026 at IPB University, Bogor, on Saturday (October 10, 2026). (Courtesy of Team KCIC)}

In developing BPS 2.0, Team KCIC structured its proposed solution around three main areas: Source of Energy and Resources, Furnace Technology, and Waste Handling and Circularity.

In terms of energy, the team proposed optimizing energy sources, including the installation of rooftop solar photovoltaic (PV) systems. Regarding production technology, they focused on improving the efficiency of induction furnaces and reheating furnaces by optimizing melting processes, reducing raw material moisture content, and recovering waste heat.

For the circular economy component, the team identified opportunities to utilize steel slag, mill scale, dust collected by dedusting systems, and leftover steel billets. Depending on their characteristics and applicable regulatory requirements, these materials could be reused in production processes or supplied to other industries.

"From an industrial engineering perspective, a good solution must not only be technically feasible but also consider cost efficiency, implementation feasibility, process flows, and long-term business sustainability," Canggih said.

The Second Furnace: Turning Production By-products into Economic Opportunities

^{The opening slide of the team's presentation, titled "From Clean Steel to Verified Steel through BUKTI House Initiatives," on Saturday (October 10, 2026). (Courtesy of Team KCIC)}

Through their analysis, Team KCIC found that the challenges associated with utilizing steel industry by-products extend beyond the availability of processing technologies. Regulatory requirements, material quality, and reliable market access also determine whether these materials can be economically utilized.

"Our analysis revealed that one of the key barriers lies in regulations, particularly gaps in regulatory coverage for certain by-product streams generated by induction furnaces," Keith explained.

This finding led the team to develop the T.U.N.G.K.U. strategic framework, consisting of six pillars: Tetapkan Statusnya (Establish Legal Status), Ukur dan Lacak (Measure and Track), Naikkan Mutunya (Improve Quality), Genggam di Dalam (Maximize Internal Utilization), Kanalkan ke Pasar (Establish Market Channels), and Umumkan dengan Bukti (Communicate with Evidence).

Through this framework, the team proposed clarifying the legal status of production by-products, testing material characteristics, improving material quality, and establishing utilization pathways that comply with industrial requirements.

One potential application involves using steel slag as aggregate material and supplying certain by-products to the cement industry once the relevant standards have been met.

The team also proposed implementing a digital mass balance system to record and track material flows, along with Material Passports to document material characteristics and potential applications. Both tools are expected to strengthen material traceability and support the verification of the company's environmental performance.

To develop the strategy, the team employed root cause analysis and issue tree methods to identify underlying problems. They then assessed financial feasibility using Net Present Value (NPV), Internal Rate of Return (IRR), sensitivity analysis, and Monte Carlo simulations to account for investment risks and uncertainties.

These analyses formed the basis of a phased implementation plan, beginning with addressing regulatory barriers and collecting material data before proceeding to investment and expanded by-product utilization.

This approach underpins the concept of The Second Furnace: generating additional economic value from production by-products without immediately investing in a second processing facility.