The circular economy is an important pillar in realizing the green industry transformation. Many industrial companies in Indonesia already practice it, such as processing plastic waste into new packaging, remelting scrap metal into quality steel and using biomass waste as alternative energy.
“With the circular economy, we not only reduce emissions and waste, but also create economic added value, reduce dependence on imports and open up green jobs,” Minister of Industry Agus Gumiwang Kartasasmita said at The 2nd Annual Indonesia Green Industry Summit (AIGIS) 2025 in Jakarta on Wednesday (20/8).
To accelerate the adoption of green industry practices, Kemenperin has introduced the Green Industry Service Company (GISCO). The platform functions as an integrated service providing technical assistance, resource efficiency assessments, emission footprint calculations, green transition plans and green financing facilitation.
“GISCO will be a bridge for collaboration between industry, green technology providers, financial institutions and the carbon market. GISCO is therefore not only a service center, but also a driving force of the national green industry ecosystem connected to international standards,” the Minister of Industry stressed.
Meanwhile, the Head of the Agency for Industrial Standardization and Service Policy (BSKJI), Andi Rizaldi, said AIGIS 2025 carried the theme “Driving Industrial Decarbonization through Green Industry Ecosystem”. Through this theme, AIGIS is expected to be a platform that encourages the active role of all stakeholders in accelerating carbon emission reductions in the industrial sector through cross-sector collaboration.
Approaches the industrial sector needs to take include integrating clean technology, energy efficiency, water efficiency, renewable energy and circular economy practices in a mutually supportive green industry ecosystem. “By building this ecosystem, the transformation toward low-carbon industry not only strengthens global competitiveness, but also opens up sustainable investment and innovation opportunities for the national economy,” Andi explained.
The Head of BSKJI continued that Kemenperin affirms its commitment to strengthening the policy foundations of green industry so that the transition to low-carbon industry proceeds in a measured way. Policies being prepared include strengthening Green Industry Standards (SIH) for priority sectors, with sharper indicators on energy efficiency, the use of recycled raw materials and limits on greenhouse gas emission intensity per unit of product.
“Then there is the integration of a Digital MRV (Monitoring, Reporting, Verification) system and the development of an industrial sector Emission Trading System (ETS), so that industry players can monetize the surplus emission reductions they have achieved,” he said.
Other policies include developing GISCO, which will be a center for green financing solutions and help companies access financing schemes at home and abroad. “Next is increasing the capacity of industrial human resources through green competency certification and reskilling programs to support the adoption of low-carbon technology,” Andi added.
The Head of BSKJI is optimistic that all these policies are designed not only to meet the industrial sector's Net Zero Emission target by 2050, but also to make green industry a new source of competitiveness for Indonesia in the global market.
Source: Press Release of the Ministry of Industry