Shanghai, June 12, 2025 – The Indonesian government expressed its commitment to accelerating the transition to a low-carbon industry through the presentation of a national strategy at the SNEC International Energy Storage and Hydrogen Technology Conference forum held in Shanghai, China on Thursday (12/6). This forum is part of a series of activities for the 75 Years Indonesia–China Exchange Visit, held from June 10-14, 2025. This activity is an initiative of the Institute for Essential Services Reform (IESR) with the support of the Indonesian Embassy in Beijing, BRIGC, WRI China, and CREIA aimed at strengthening bilateral relations between Indonesia and China, with a focus on the development of clean energy and sustainable energy transition.
The Director of Resilience and Industrial Business Climate of the Ministry of Industry, Binoni Tio Arisandi Napitupulu stated that to support the Asta Cita 2025–2029 growth scenario, the non-oil and gas industrial sector is targeted to grow by 8 percent with a contribution of 21.9 percent to national GDP. This requires not only downstreaming of natural resources, but also industrial transformation towards low carbon. Moreover, Indonesia has also ratified the Paris Agreement and is committed to achieving net zero emissions (NZE) by 2060.
“We have prepared several steps to support the development of environmentally friendly industries in line with the Asta Cita target. For example, through strengthening the domestic solar panel industry which currently has a production capacity of 4,384 MWp with a domestic content level (TKDN) of 40-55 percent,” said Binoni.
Furthermore, Binoni said that his party is also preparing a strategy for decarbonizing the industrial sector through two main approaches: a decarbonization roadmap and strengthening regulations for green industrial areas (Eco Industrial Park, EIP). This decarbonization roadmap focuses on nine priority industry groups that contribute greatly to national carbon emissions, namely cement, fertilizer, metal, pulp and paper, textiles, chemicals, ceramics and glass, food and beverages, and transportation equipment.
“Meanwhile, to strengthen the regulation of green industrial areas, we have adopted the EIP concept which has been officially stated in Government Regulation No. 20 of 2024, Article 79. EIP is an industrial area that integrates social, economic, and environmental aspects in the planning, development, and management processes of the area. The main objective is to improve the economic performance of the industry by minimizing environmental impacts,” said Binoni.
According to Binoni, there are four main aspects that are the focus in EIP management, including industrial area management, environmental management, social and economic aspects. In its implementation, said Binoni, there are five main approaches used, namely green infrastructure design, clean production, pollution prevention, resource efficiency (water and energy), and partnerships between companies.
“We are also preparing a Ministerial Regulation on EIP that includes indicators, verification, reporting, and incentive schemes for industrial estate managers and tenants who adopt green principles. With this comprehensive approach, the Indonesian Government shows its seriousness in transforming the national industrial structure to be more environmentally friendly without sacrificing productivity. The integration of decarbonization strategies and EIP is expected to be a sustainable model that can be replicated throughout Indonesia, while attracting green investment and strengthening national export competitiveness,” he explained.
