Monday, 22 April 2013


To promote growth of environmentally friendly industries or green industries nationally, the government signaled to provide incentive to environmentally friendly industries in the form of price reduction for machinery purchase for industries who obtained green industry certificate. The incentive program could save energy up to 25%, increase productivity up to 17%, and absorb workers. Machinery procurement does not reduce workers. On the contrary, there will be many workers needed for machinery maintenance.

Aryanto Sagala, Head of Industrial Policy, Climate and Quality Assessment Agency at the Industry Ministry, in Jakarta on Friday (11/23/2012), said that the provision of special facility to companies who obtained green certificate is still in the stage of discussion with the related institutions. Aryanto explained that environmentally friendly industry ap­proach will continually be implemented by the Government as it could increase industries excellence. According to him, advanced countries will no longer receive exported products from companies who do not apply green industry. We must Consider this as advanced countries is 80% at Indonesia’s export destination, he said.

Aryanto considers that application at green industry in industry sector is highly important in the framework of promoting competitiveness of local products if compared to imported products. He said that then issue about green product has become a frequently discussed matter in several countries, especially Europe. Therefore, this condition must be responded by increase of the role of industry research and development, He said that green industry can be applied starting from raw material, technology, up to energy.

Global issue concerning environment friendli­ness has recently become a main topic. Application of green industry is very urgent as it affects export of Indonesian manufacturing industries products to several countries. He took an example of the national pulp and paper industry who once faced a problem, namely black campaign launched by one of world’s non-governmental organization saying that Indone­sian paper is derived from non-environmentally-friend­ly forests. To respond to this claim, it said, Indonesia must create paper Industries with environmental con­cept.

Similar thing was stated by Edy Putra Irawady, Deputy IV for Industry and Trade Coordination at the Coordinating Ministry of Economy. According to Edy, industries producing Indonesian National Standard (SNI) products should also be given priority to receive incentive from the government. This is to support increase of competitiveness and to broadly open market access, local or overseas. According to him, product standardization could increase sale value and market expansion sustainably.

Edy is in the opinion that a product manufac­tured according to national standard could reduce un­necessary production cost. Therefore, development of national standard product is important. Moreover, consumers are already smart and they expect prod­ucts that provide protection to the society and the environment. He considers that in Indonesia, there are many products with such specifications, and it is an opportunity for producers to develop these products. He said that national standard products will enable the industries when they will receive incentive from the government. Product standardization is also ben­eficial to entrepreneurs, he said.

In the same policy package, there is also de­velopment of low-cost cars provided to increase rural economy mobility. These low-cost cars consist of plantation cars, mine cars, and cattle vessels. Edy explained that the policy package will also rule about mechanism of hybrid car production in Indonesia. There must be balance between econ, saving, standard, and reasonableness of price. He said that the government will also provide Sales Tax on Luxury Goods (PPnBM) incentive, ensure preparedness of fuel station, energy access, converter, transfer tax, vehicle ownership tax, and other. 

Business News - November 28, 2012

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