Indonesia Pushes Green Industry to Boost Global Investment

TEMPO.CO, Jakarta - Indonesian Industry Minister Agus Gumiwang Kartasasmita stated that strengthening the ecosystem of environmentally sustainable industries is crucial, especially in maintaining Indonesia's export access to major trading partner countries.

According to Agus, the transformation toward a green industry is a strategic step in adapting to various global trade policies that increasingly focus on environmental aspects. He pointed out that several countries, such as the United States, the United Kingdom, and the European Union, have adopted strict import regulations, requiring foreign products to meet environmental standards from upstream to downstream.

"So, awards or green industry certificates should not be underestimated, as they can be the basis when exporting goods to countries such as the EU, UK, the USA, and others," said Agus when met by reporters at the Shangri La Hotel, Jakarta, on Thursday, 8 May 2025.

He further explained that policies such as the polluter import fee in the United States, anti-deforestation policies in the UK for certain commodities, and the implementation of the Carbon Border Adjustment Mechanism (CBAM) by the European Union are forms of environmental regulations that can hinder the entry of products that are not sustainably produced.

In addition to a requirement to access the international market, applying green industry principles is also seen to increase the interest of foreign investors in Indonesia's industrial sector. Agus stated that many global financial institutions currently prefer to invest in companies that are serious about practicing environmentally friendly industrial processes.

"This is the interest of funders, from financial institutions to allocate funds for industrial transformation, and we are very optimistic," he said.

To support this agenda, the Ministry of Industry is currently designing policies related to financing facilities for companies committed to transitioning towards green industry. One of the initiatives is that a Minister of Industry Regulation has been issued, which will regulate the establishment of a special entity called the Green Industry Service Company (GISCO).

Agus Gumiwang explained that GISCO is designed as an entity that functions as a link between the industrial sector and investors, as well as financial institutions, especially in supporting the financing of sustainable industrial transformation projects in the country.

"We are currently in the process of preparing the issuance of the Minister of Industry Regulation on green industry financing facilitation. The Green Industry Service Company (GISCO) will be established. We are the facilitator," he said, as quoted from Antara, Thursday, 8 May 2025.

"In GISCO, investors and financial institutions will finance the transformation of existing Indonesian industries into green industries," he said.

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