Indonesia - Japan raise issue of industrial sector sustainability

27 September 2022 19:11

JAKARTA - The Indonesian government seeks to increase the capacity and competitiveness of the national industry by taking into account the principle of sustainability. This strategic step is in accordance with the priority program on the Making Indonesia 4.0 roadmap.

Several policies that support the sustainability issue, among others, Indonesia continues to encourage the transformation of a linear economy into a circular economy, especially for the manufacturing sector. "This is very important to maintain resource continuity, regenerate raw material sources, and explore untapped economic potential," said Director General of Resilience, Regional and International Industrial Access (KPAII) of the Ministry of Industry, Eko S.A. Cahyanto in Jakarta, Tuesday (27/9).

In addition, Indonesia is preparing itself as a pioneer of green mobility through policies that support the creation of an ecosystem for the development of the electric vehicle industry, and Indonesia is initiating an Eco-Industrial Park approach in increasing resource productivity and improving economic, environmental and social business performance.

"Indonesia is also developing new renewable energy through the palm oil industry, and other programs," said Eko. The implementation of these programs is also supported by various other supporting policies, such as fiscal and non-fiscal facilitation and incentives, industrial human resource development, and infrastructure development

President Director of the Japanese External Trade Organization (JETRO) Takahashi Masakazu said that the issue of climate change is an important issue that cannot be avoided by industries in various countries in the world. “In an effort to support global decarbonization, the Government of Japan together with Japanese companies in Indonesia will consider implementing several new programs, including efforts to transition to carbon neutrality, a circular economy, an upcycle that exceeds recycling, and GX (green transformation)," he explained.

Masakazu added several policy proposals to the Government of Indonesia, including preparation of the investment environment for decarbonization (costing, regulatory systems, etc.), providing incentives for companies undertaking decarbonization efforts, preparing related infrastructure for decarbonization, and prioritizing evaluations based on life cycle assessments. (LCA) and encourage 3R (reduce, recycle, reuse) of waste, and utilize digital technology. (LM)


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