The Ministry of Industry continues to focus on increasing manufacturing value added in Indonesia, including by following sustainable green industry principles to create a carbon-free future. Kemenperin targets Indonesia's manufacturing industry to reach Net Zero Emission (NZE) by 2050, ten years earlier than the national target of 2060.
Compared with its peers worldwide, Indonesia ranked 12th among the world's Leading Manufacturing Countries in 2023, above Russia and Turkey. In addition, Indonesia's Manufacturing Value Added (MVA) in 2023 reached USD 255 billion, up USD 14 billion (5.83%) from 2022. Over the past five years (2019–2023), Indonesia's MVA has continued to rise with a trend of 4.47%, outpacing the United States, Japan, Germany, Korea, France and the United Kingdom.
“Progress in applying green industry principles in Indonesia can be seen in The Green Future Index 2023 data. Indonesia ranked 49th in the world as a country transitioning toward environmentally friendly energy, industry, agriculture and society through investment in renewable energy, innovation and green policies. Indonesia's ranking rose 21 places from 70th in 2022,” Minister of Industry Agus Gumiwang Kartasasmita said when opening the Annual Indonesia Green Industry Summit (AIGIS) in Jakarta on Thursday (19/9).
Decarbonizing the industrial sector certainly requires support from many parties, especially industry players. Kemenperin expressed appreciation to nine industry associations for declaring their support for achieving the NZE target by 2050. They represent industrial subsectors prioritized for decarbonization, including the Indonesian Pulp and Paper Association (APKI) and the Indonesian Cement Association (ASI), as well as the Indonesian Fertilizer Producers Association (APPI), the Indonesian Ceramic Industry Association (ASAKI), the Indonesian Fiber and Filament Yarn Producers Association (APSyFI), the Indonesian Food and Beverage Producers Association (GAPMMI), the Association of Indonesian Automotive Industries (GAIKINDO), the Federation of Indonesian Chemical Industries (FIKI) and the Indonesia Iron and Steel Association (IISIA).
“Of course, we also hope for support from all other industrial subsectors in achieving the industrial sector's emission reduction target of Net Zero Emission by 2050,” the Minister said.
The first AIGIS, held in 2024, took the theme “Transformation into Greener Industry for Sustainable Economy” and was an initial step affirming Kemenperin's commitment to strengthening the ecosystem to facilitate the country's green industry transformation through innovations that support accelerated decarbonization. Focusing on innovation, industrial decarbonization strategies, green technology development and green financing potential, AIGIS was designed to facilitate discussion on accelerating the industrial sector's NZE target by 2050.
The Minister explained that the ecosystem will also develop a green financing option, the Green Industry Service Company (GISCO), to help companies with funding, designing and implementing green technology. “So the government's role, in this case the Ministry of Industry, is not only to set regulations that will push industry to transform toward green industry, but also to provide solutions to the problems industry faces,” Agus said.
The Head of the Agency for Industrial Standardization and Services Policy at Kemenperin, Andi Rizaldi, explained that the AIGIS 2024 series included presenting Green Industry Certificates, presenting Green Industry Awards to the best-performing industries, and launching the Industrial Sector Decarbonization Roadmap and the Industrial Sector Carbon Trading Roadmap.
“In addition, to make certification easier, the Ministry of Industry also held the kick-off for developing the Green Industry Certification Electronic Service System, or SELASIH,” Andi said.
At the event, Kemenperin also introduced several policies being prepared on emission reporting, Emission Caps (BAE) and Carbon Economic Value (NEK) for the industrial sector, important steps in supporting Indonesia's commitment to reducing greenhouse gas emissions and transitioning to a sustainable green economy.
Kemenperin also signed a joint commitment statement with the World Resources Institute (WRI) Indonesia to support the continuation of AIGIS as an annual forum promoting green industry in Indonesia. Under the statement, WRI Indonesia, an independent research institution on environmental sustainability, was appointed as Kemenperin's strategic partner in developing the concept, implementation and follow-up of the event, and in strengthening the basis for collaboration to accelerate the transition to more inclusive and sustainable green industry.
“WRI Indonesia is ready to support and oversee the Ministry of Industry's commitment to driving green industry transformation in Indonesia through policy recommendations and data- and research-based guidelines. We are proud to support the continuation of this initiative through collaboration on AIGIS in the coming years, and stand ready to contribute technical expertise, resources and the latest research in green industry,” said Nirarta Samadhi, Country Director of WRI Indonesia.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia