Kemenperin: Green Industry Standards Realize Sustainable Development

Jakarta, INTI - The Ministry of Industry continues its efforts to enhance the competitiveness of manufacturing industries that adhere to sustainable principles. One of its initiatives is through green industry policies, which broadly encompass three pillars of sustainability: economic, environmental, and social.

"Green industries can also be used as tools to reduce greenhouse gas emissions (GHG) to achieve the set targets," said the Head of the Agency for Standardization and Industrial Policy Services (BSKJI) at the Ministry of Industry, Andi Rizaldi, during the National Green Industry Forum at the Provincial Level and the Facilitation Program for Green Industry Standard Certification held in Surabaya on Tuesday (4/30).

According to the Head of BSKJI, the development of green industries is not only the responsibility of the central government but also requires active participation from all stakeholders, especially local governments, to encourage business actors in the industrial sector to transform from conventional industries to green industries through the application of Green Industry Standards (SIH). "By implementing green industries, we hope to address various future issues and challenges such as climate change and decarbonization," he said.

The Green Industry Forum, initiated by the Ministry of Industry's Green Industry Center, was attended by more than 100 participants, including representatives from Provincial Industry and Trade Offices, industrial players in East Java, representatives of SIH Institutions, and representatives from relevant Ministries/Agencies. "The active role of all parties in creating a better, greener, and more sustainable future will be a positive legacy for future generations," explained Andi.

The implementation of SIH is one of the instruments that will be the backbone for achieving Sustainable Development Goals (SDGs), Environmental Social Governance (ESG), as well as Indonesia's Nationally Determined Contribution (NDC) and Net Zero Emission (NZE) targets for the manufacturing industry sector by 2050 or earlier. "We will promote SIH to strengthen market access, funding access, and to drive decarbonization targets," he added.

To achieve these targets, the Head of BSKJI stated that there are several focus areas for the future development of SIH, such as encouraging SIH to play a significant role in Government Procurement (Green Public Procurement), and SIH is expected to act as a safeguard for national products in facing regulatory changes in export destination countries, especially the Carbon Border Adjustment Mechanism (CBAM). For example, SIH related to aluminum, steel, and hydrogen.

Additionally, SIH is directed towards becoming one of the instruments in achieving the Company Benefit Weight (BMP) to meet Domestic Content Level (TKDN) requirements. Furthermore, SIH is also aimed at becoming one of the instruments for international trade, both as Non-Tariff Measures (NTM) through the mandatory implementation of SIH to counter imported product pressures, and as a factor for fulfilling the rules of origin (COO) within the framework of free trade cooperation with partner countries.

"We even encourage SIH to play a role in achieving priority industry targets according to the Ministry's strategic programs to enhance competitiveness while fulfilling the country's commitments in NDC and NZE," explained Andi.

Through the National Green Industry Forum, the Ministry of Industry also encourages industrial mentors throughout Indonesia to synergize and collaborate with all stakeholders. This forum is expected to be a platform for exchanging knowledge, enhancing understanding and awareness of green industry implementation, including the participation of local governments in providing incentive stimuli for industries to transform into green industries.

"In the future, appreciation for the performance of green industries in the form of green industry awards will not only be given to industry players but also to those who have contributed, including local governments that have actively participated in the development and transformation of their mentored industries into green industries," said Andi.

In the framework of this forum, the Ministry of Industry also inaugurated the Green Industry Standard Certification Facilitation Program, which is one of the efforts to assist industries in transforming into green industries. "In 2024, we target 70 industrial companies to be facilitated with Green Industry Certification. In Phase I, there are already 48 industrial companies registered as recipients of this facilitation assistance," he concluded.

At the same event, the Head of the Green Industry Center, Apit Pria Nugraha, mentioned several benefits of implementing SIH and the advantages of having a Green Industry Standard Certificate, including increased profits and competitiveness through efficiency or productivity improvements, enhancing the company's image on a national and global scale, as well as improving company performance in terms of energy bills, utility costs, raw materials, and environmental management costs.

Other benefits include opening opportunities and facilitating access to green financing, opening up new markets especially for green products or sustainable products, participating and contributing to environmental preservation efforts, and supporting the acceleration of greenhouse gas emission reduction programs.

In efforts to achieve increased competitiveness and national economic growth targets by 2045, SDGs, Indonesia's NDC, and NZE, there is a need for accelerated implementation and transformation of manufacturing industries into green industries. "To accelerate this transformation, incentives in the form of facilitation are needed. The provision of fiscal or non-fiscal incentive facilitation in accordance with the mandate of Government Regulation No. 29 of 2018, which can be carried out by the central and regional governments," explained Apit.