Indonesia : Companies are increasingly aware of the importance of implementing a green industry

I am very proud to see that the manufacturing sector has been increasingly motivated in pursuing green industry development

Minister of Industry Agus Gumiwang Kartasasmita said that industrial companies are increasingly aware of the importance of implementing a green industrial system in their production operations, one of which is able to make energy use efficient.

"I am very proud to see that the manufacturing sector has been increasingly motivated in pursuing green industrial development with the success of energy efficiency reaching a value of Rp. 3.2 trillion and water saving of Rp. 169 billion. This achievement strengthens the industry's commitment to ensure the sustainability of the company's business in the long term," he said. Minister of Industry in Jakarta, Tuesday.

The Minister of Industry conveyed this at the "Green Industry Award Award and Green Industry Certificate Presentation" at the Ministry of Industry Building, Jakarta.

The Ministry of Industry regularly organizes the Green Industry Award Program, which is assessed using measurable, objective, and accountable performance indicators.

"We see how and how much industrial companies can make efficiency in the production process," said Agus.

It is characterized by the characteristics of the use of raw materials, the intensity of the use of energy and water; use of alternative energy; minimization of waste and emissions as well as compliance with environmental quality standards; using low-carbon technology; and competent human resources.

The Green Industry Award is awarded based on three aspects, namely production, waste and emission management performance, and company management.

Based on this assessment, there are 88 industrial companies that get the highest qualification rating, namely level five, followed by 49 industrial companies that get level four, and 15 industrial companies that require more optimal efforts to apply green industry principles.

Secretary General of the Ministry of Industry Dody Widodo said that based on the 2021 industrial self-assessment data , the Ministry of Industry calculated the achievement of energy savings in rupiah to reach Rp. 3.2 trillion and the achievement of water savings to Rp. 168 billion.

"Efforts to save, especially on energy, contribute to reducing energy use as well as reducing greenhouse gas emissions," he said.

This is in line with the Government of Indonesia's commitment to the concept of low-emission sustainable development in achieving sustainable development goals (SDGs).

The participation of the Green Industry Award Program in 2021 will be attended by 152 industrial companies, in the categories of 140 large industries, 10 medium industries, and two small industries.

The majority of participants in the Green Industry Award, 60 percent, are industries fostered by the Directorate General of Agro Industry, followed by industries fostered by the Directorate General of Chemical, Pharmaceutical and Textile Industry by 32 percent and the rest are fostered by the Directorate General of ILMATE and the Directorate General of Small and Medium Enterprises.

In 2021, as many as 10 industrial companies have been facilitated and one industrial company has applied for certification through self-financing and furthermore, from the application for Green Industry Certification, seven industrial companies have fulfilled all certification mechanisms and subsequently the company has the right to use the green industry logo.

Thus, since the implementation of the Green Industry Certification in 2017 to 2021, a total of 44 industrial companies that have obtained green industry certificates.

"In the future, it is hoped that more industrial companies will participate and meet green industry standards," concluded Dody.

Sri Mulyani: The government synergizes to increase Indonesia's oil production

The Ministry of Energy and Mineral Resources recently discussed with the Ministry of Finance to try to see improvements from a fiscal perspective

Finance Minister Sri Mulyani Indrawati stated that the government through the Ministry of Finance and the Ministry of Energy and Mineral Resources work together to increase oil production, which is currently declining.

"The Ministry of Energy and Mineral Resources recently discussed with the Ministry of Finance to try to see improvements from a fiscal perspective," Sri Mulyani said at the 2nd International Convention on Indonesian Upstream Oil and Gas 2021 in Jakarta, Tuesday.

Sri Mulyani said that the continued decline in oil and gas production would create a wider demand gap that needed to be addressed immediately so that it would not have an impact on the trade balance and current account balance.

Therefore, Sri Mulyani said support in the form of improvements in terms of fiscal needs to be provided to provide comprehensive policies and reforms related to cost recovery, gross split and taxation.

On the other hand, Sri Mulyani said support to increase national oil production must not only be done from a fiscal perspective but also increase investment in the upstream oil and gas industry.

In addition, in increasing oil production, there is also a need for certainty in industrial contracts, efficiency and use of technology as well as transparency of good governance.

This is related to oil which is a natural resource that cannot be renewed and will inevitably run out, so the government needs to think about its availability for the next generation.

Moreover, Sri Mulyani said there are 95 new basins that have the potential to produce oil and have not been worked on by the industry so that they can be an alternative to meet oil needs.

“We take it from the earth and we owe it to the next generation. So we must be able to continue to manage and build a strong and reliable policy framework,” he said.