Indonesia's Industry Ministry Prepares Green Industry Standard

Teddy Sianturi, the head of the Industry Ministry's green industry and environment center, delivers a speech during the Beyond Profitability seminar at Jakarta's Thamrin Nine Ballroom on Wednesday (06/12). (JG Photo/Yudha Baskoro)

By : Rahajeng KH | on 2:08 PM December 07, 2017
Category : Business, Sustainability

Jakarta. Indonesia's Industry Ministry is preparing a new regulation to set sustainability requirements and lay out incentives for businesses to help the country lower its carbon emissions by 29 percent by 2030.

Teddy Sianturi, the head of the ministry's green industry and environment center, said several industries have already implemented their own sustainability standards.

For example, the cement industry has a recommendation in place to save 4.2 kilowatts per hour (kWh) of energy for each ton of production, the fertilizer industry 111 kWh, the iron and steel industry 460 kWh and the pulp and paper industry 301 kWh.

"In the cement industry, Holcim has already implemented [its own sustainability standard]. The iron and steel industry also has a blast furnace system, which helps a great deal in saving energy," Teddy told reporters on Wednesday (06/11).

Teddy made the comment on the sidelines of the "Beyond Profitability: Balancing Sustainability and Growth" seminar organized by GlobeAsia and the April Group in Jakarta.

Holcim Indonesia, the local unit of Swiss cement producer LafargeHolcim, recently won the Indonesian Sustainable Business Award for its long-term planning to counter the effects of climate change.

The company also established a separate company, Geocycle, to turn waste into business opportunities.

Teddy said the government has a plan to attract more companies to get involved in the recycling business, minimizing waste and turning it into an opportunity to make even more money.

"What we're designing is an incentive," Teddy said, adding that one incentive that is most likely to attract companies is an exemption to paying value-added tax (VAT).

"[Recycling] companies now pay double VAT on their input and output. That's one area we can provide an incentive for. But we're still researching the best way to do it," he said.

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