“To benefit sustainable resources and to realize sustainable development, the Industry Ministry has developed the circular economy concept in the form of the Green Industry policy to maintain products’ value; hence, we can use them repeatedly without producing waste, through the activities of recycle, reuse, and re-manufacture," head of industry research and development (BPPI) at the ministry, Doddy Rahadi, said in a statement issued here on Wednesday.
Presidential Regulation no. 18/2020 on the medium-term development plan for 2020-2024 has directed the policy towards the improvement of products' added-value.
Rahadi said law no. 3/2014 has stipulated the country's goals to develop a self-reliant, competitive, advanced, and green industry.
“An industry is called a green industry if, in its production process, it has prioritized efficient and effective use of resources, hence it would balance industry development with the preservation of the environment to give the benefits to the people,” he elaborated.
Companies that have met the green industry standard would be awarded a Certificate of Green Industry from the Green Industry Certification Agency (LSIH), he said.
“To support the expansion of green industry implementation in the country, the Industry Ministry is preparing the mechanism of incentive facility for green industry. As stipulated in the Government Regulation no. 29/2018 on industry empowerment, the government would provide fiscal as well as non-fiscal incentives,” he informed.
The ministry is still working on the Benefit Cost Analysis (BCA) and feasibility of providing fiscal incentives for its green industry push, he added.
In 2017-2019, the government provided a funding facility for the green industry certification of 31 companies.
“This year, we will extend the funding facility to 15 companies, and further in 2021. This has proved our commitment to support companies to implement green industry,” he said.
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Translator: Risbiani Fardaniah, Sri Haryat
Editor: Rahmad Nasution
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