Green Industry Transformation Is an Investment, Not Cost: Minister
Main Takeaways
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JAKARTA, Investortrust.id — Minister of Industry Agus Gumiwang Kartasasmita has stressed on Wednesday, Aug 20, 2025, that Indonesia’s transformation toward a green industry must not be viewed as a cost burden but rather as an investment for the nation’s future.
“Transforming toward a green industry must not be considered as a cost, but as an investment,” Agus said at the opening of the 2nd Annual Indonesia Green Industry Summit (AIGIS) 2025 at the Jakarta International Convention Center.
Agus explained that the manufacturing sector was facing global challenges, particularly growing demands from markets and consumers to cut greenhouse gas emissions. He emphasized that collaboration between government and industry players was crucial to enhance Indonesia’s competitiveness and increase the value of its products.
“The decarbonization agenda must be seen as an opportunity, not a burden. The journey toward a green industry requires vision, innovation, and collaboration,” he added.
Agus highlighted several strategic measures to support this transformation, including energy efficiency, greater use of renewable energy, the adoption of carbon capture utilization (CCU) technologies, and the implementation of a circular economy. These efforts, he said, would safeguard Indonesia’s global competitiveness while contributing to environmental sustainability.
At the same event, Head of the Agency for Standardization and Industrial Services Policy (BSKJI) Andi Rizaldi said that AIGIS 2025 carried the theme “Driving Industrial Decarbonization through Green Industry Ecosystem.” He described the summit as a cross-sector platform to accelerate carbon emission reductions in the industrial sector.
“The approach for industry must include integrating clean technology, energy and water efficiency, renewable energy use, and circular economy practices into one green industry ecosystem. With such an ecosystem, the shift toward a low-carbon industry will not only strengthen global competitiveness but also create new opportunities for sustainable investment and innovation for the national economy,” Andi explained.
Industry Voices on Transition
Private sector leaders also underscored both the opportunities and challenges of Indonesia’s green industrial shift.
PT Industri Jamu dan Farmasi Sido Muncul Tbk financed its entire transition on its own, despite being offered transition funding from international institutions. Sido Muncul, a $1 billion company based on market capitalization on the Indonesia Stock Exchange (IDX), declined because the offers came in the form of loans, which did not align with its no-debt corporate policy.
“Today, around 90 percent of our operations already rely on renewable energy sources. Our utility bill is down 10 percent compared with conventional energy, and green certification has made access to export markets much easier,” said Yordi Kristianto Budiono, Strategic Planning and Sustainability Manager at Sido Muncul.
For a smaller enterprise like Greenhope, which positions itself as a social enterprise and technology innovator, a full transition to renewable energy is more challenging.
Tommy Tjiptadjaja, Greenhope CEO, explained that while the company has pioneered biodegradable solutions such as Oxium (a biodegradable additive), Ecoplas (a cassava-based bioplastic), and Naturloop (a home-compostable cassava bioplastic), the cost of renewable energy remains a barrier.
“Greenhope is committed to producing renewable-sourced, low-carbon, and market-proven green products. But accessing affordable green energy is still a challenge for us. The cost factor is a barrier, and we are actively exploring pathways to make our energy use as sustainable as our products,” Tommy said.
GISCO Initiative
Addressing these financing and energy transition challenges, Apit Pria Nugraha, Head of the Green Industry Center at the Ministry of Industry, said the government was advancing solutions through the Green Industry Service Company (GISCO).
According to him, GISCO would evolve into a central hub for green financing solutions, connecting domestic and international funding schemes with Indonesian companies that previously had been too small in scale to access such financing.
“These measures are designed not only to help industry players overcome the financing gap and accelerate their green transition, but also to position Indonesia’s green industry as a new source of global competitiveness. We are confident this will support the national target of net zero emissions by 2050,” Apit said.
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