Friday, October 18, 2024

Ministry of Industry stresses no need incentives in manufacturing sector for emission reduction

Reading Time: 2 minutes
Julian Isaac

Journalist

Mahinda Arkyasa

Editor

Interview

Agus Gumiwang Kartasasmita, the Minister of Industry, has emphasized that there is no need for incentives to induce emission reduction among manufacturing industry players. He believes that such reduction efforts will occur voluntarily due to the growing trend of green products in the global market.

Agus states that the industrial sector holds a responsibility to reduce emissions, making emission reduction in the manufacturing sector a necessity. He highlights that as a consequence, the manufacturing sector will adapt to the global shift towards green products.

“Ultimately, the manufacturing sector will adapt as the world moves toward the trend of green products,” Agus stated on August 23, 2023.

Agus asserts that industries failing to reduce emissions in the future will encounter challenges. He argues that manufacturers who do not take steps to decrease emissions will struggle to compete in the global market, especially within Europe and the United States. Moreover, both Europe and the United States are becoming increasingly stringent in implementing green criteria.

Earlier, Bobby Gafur Umar, Vice Chairman for the Industrial Sector at the Indonesian Chamber of Commerce and Industry, acknowledged that the manufacturing sector contributes to air pollution issues in Jakarta, Indonesia’s capital city. Consequently, business entities hope the government will provide incentives for the installation of filters and solar panels in factories.

Bobby has previously engaged in discussions with the Ministry of Industry regarding the installation of filters in factories around the capital. He urges the government to incentivize business owners to invest in filter installation and make factories more environmentally friendly.

“Such investments are looked at piece by piece. As a result, entrepreneurs are not interested; they shy away,” Bobby stated.

Meanwhile, PT Perusahaan Listrik Negara (PLN), the state electricity company, has reported that gas sources contribute up to 51% of emissions in DKI Jakarta, with oil accounting for 51% and coal approximately 0.42%.

Within sectors, transportation holds the largest share in air pollution generation in the capital city, contributing around 44%. In comparison, the manufacturing sector’s contribution is 31%, energy for manufacturing stands at 10%, housing needs are about 14%, and the commercial sector accounts for only 1%.

Cumulatively, the manufacturing sector contributes 41% to Jakarta’s pollution levels. IQAir data also reveals that the primary air pollutant in Jakarta is PM2.5, with a concentration of 47 µg/m³ (micrograms per cubic meter) as of August 28, 2023. This value is 9.4 times higher than the World Health Organization’s (WHO) annual air quality guidelines.

Julian Isaac

Journalist

Mahinda Arkyasa

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

The Association of Oil and Gas Companies (ASPERMIGAS) has proposed the formation of an agency under the Coordinating Ministry for Political, Legal, and Security Affairs to handle the problem of rampant illegal drilling in a number of Indonesian regions for decades.
As the world is anticipating the potential of 85 million jobs lost by 2025 amidst aggressive invasion of Artificial Intelligence (AI) and technological advances, global workforce, in particular Indonesian workers, need not to stand still, but positively respond to this unavoidable global phenomenon.
A subsidiary of state owned energy Pertamina, Pertamina New & Renewable Energy (Pertamina NRE) has set up a cooperation with PT Pertamina International Shipping (PIS), Pertamina’s Integrated Marine and Logistics Sub Holding, to develop a transportation business, particularly related to the transportation of green hydrogen and other sustainable fuels.
PT Rukun Raharja (RAJA) is broadening its presence in downstream oil and gas sector by offering a Booster Compression Plant (BCP) rental service to support the development of Kampung Baru in the Sengkang Block, Wajo regency, South Sulawesi.
The Indonesian government, the European Union, and the International Organization for Migration (IOM) have launched Risk Index for Climate Displacement (RICD), a data tool designed to provide operational foresight to anticipate, reduce, and respond to climate-induced displacement.
The government is optimistic that the eight-percent economic growth target set by President-elect Prabowo Subianto is achievable in view of the scenario of the National Long-Term Development Plan (RJPN) Golden Indonesia 2045.