Pushing a Green Economy Through Eco-Friendly Industry Initiatives

JAKARTA – In line with the green industry principle, the government is pushing to optimize the competitiveness of every Indonesian manufacturing sector by encouraging eco-friendly and sustainable production processes.

This step is to help increase the efficiency of production and support the implementation of a circular economy and other good practices both in the field of management and technological use.

As directed by President Joko “Jokowi” Widodo, one of the largest national economic and business strategies that is currently being pushed is the application of green economy principles that have begun through such initiatives as the Low Carbon Development Initiative (LCDI). The LCDI initiative has already been integrated inside the government’s Mid-Term Working Plan (RPJMN) for 2020-2024 and is done in line with Law no. 3/2014 on Industries.

“For green industries, their production process must prioritize efficiency and effective, sustainable usage of natural resources while also being able to align industrial development practices with environmental sustainability so that the people can benefit more from them,” Industry Minister (Menperin) Agus Gumiwang Kartasasmita said on Monday (18/10). 

Furthermore, the Head of the Industry Ministry’s (Kemenperin) Standardization and Industry Service Policies Department Doddy Rahadi noted that one of the key strategic methods that could enable the manufacturing industry to fulfill green approaches is to enforce and organize an Industrial Green Standard (SIH), which acts as a guide for industries to implement green economy principles into their production process.

SIH conditions are applicable for every commodity based on the five-digit business field standards clarification, and enforced by the laws of the Kemenperin.

“As of 2021, 28 SIH certificates have been issued through the Kemenperin’s laws and 37 companies have officially been certified as green industries,” Doddy explained.

SIH criteria mostly revolve around technical and management requirements. “We hope that by implementing SIH, a number of government aims could be achieved sooner, such as a circular economy, a net zero emission scenario by 2060 and fulfilling the Sustainable Development Goals (SDG),” Doddy added.

Furthermore, SIH will also become a key tool throughout the certificate issuance process, beginning from the application process (where industries will apply for SIH certification), to assessment by green industry auditors, to the evaluation process done by the Green Industry Certification Institute (LSIH). Through Kemenperin Decree no. 24/2021, the Kemenperin has formed and assigned 14 LSIHs, which come both from within the ministry and also from private certification institutions.

“For companies that have fulfilled the conditions to obtain a SIH, they will be given a certificate which further indicates their enterprise as a green industry for the next 4 years and have the right to use the green industry logo on their products and operations,” Doddy elaborated.

The benefits of this program, he added, is to prepare and encourage the workers in the industry to conduct independent evaluations on their own fields of work and indicate the strengths and weaknesses so that they are able to obtain green certificates for their company while also improve efficiency and the effectiveness of the national industry.

“Going forward, industrial workers that have grasped the requirements of green certification can go on and help companies in preparing resource usage plans such as raw materials, energy, water, greenhouse gases, waste management and others to the point where companies can conduct self-assessment processes themselves,” he said.