The recycling industry sector is expected to contribute to supporting the substitution of imported raw materials.
Jakarta (ANTARA) - The manufacturing industry is playing a crucial role in building a circular economy, especially producers of recycled goods, head of the Standardization and Industrial Services Policy Agency (BSKJI) of the Industry Ministry, Doddy Rahadi, said.

"The recycling industry sector is expected to contribute to supporting the substitution of imported raw materials," Rahadi said at an online pre-conference on Hannover Messe 2021, here on Thursday.

According to data from the ministry, Indonesia had at least 60 plastic recycling companies in 2019. Of the total 972 thousand tons of plastic used as raw material by these companies, 30 percent is imported scrap.

The recycling process has also been developed for the production of paper, textiles, electronics, glasses, ceramic, metal, and automotives.

Rahadi said limited local raw material and tighter competition have pushed the industry to improve efficiency of resources and product quality, as well as follow efficient and environment-friendly production processes.

Therefore, innovation to increase the use of waste as alternative raw material and for import substitution is needed, he added.

The Industry Ministry has developed Smart-Eco Industrial Parks, that cover various aspects, including Smart Energy Management and Smart Water Management, which are in line with the principles of green industry, he informed.

"In future, the role of SIH (green industry certificate) would be strengthened to make a synergy with the company performance rating program (PROPER)," he said.

Companies that have already obtained an SIH should get incentives for their contribution to reducing greenhouse gas emissions, he added. (INE)

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Translator: Sella P Gareta, Sri Haryati
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