Jakarta, August 20, 2025 — The transformation toward a green industry is influenced by various factors, both domestic and international. At least four main factors are currently driving, while at the same time challenging, the journey of Indonesia’s manufacturing industry in adapting to a more sustainable direction.
“There are four main factors that I would like to convey. First, the demand from consumers for green products,” said Minister of Industry Agus Gumiwang Kartasasmita at The 2nd Annual Indonesia Green Industry Summit (AIGIS) 2025 in Jakarta, Wednesday (20/8).
Regarding consumer demand, the Minister explained that global markets are becoming increasingly selective, with consumers preferring environmentally friendly products, transparent carbon footprints, and clear sustainability values. “Moreover, Generation Z across the world is increasingly concerned about green products. This is a huge opportunity,” he emphasized.
The second factor is the rise of green financing. Domestic and international financial institutions now prioritize projects that comply with Environmental, Social, and Governance (ESG) principles, thereby opening opportunities for industries ready to innovate.
“The third factor is the preparation of government policies through the industrial decarbonization roadmap, fiscal incentives, investment facilitation, and resource efficiency regulations, which also serve as major drivers,” he added.
The fourth factor, which poses a serious challenge, is global trade mechanisms such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), which will impose additional costs on products with a high carbon footprint. “Indonesian industries must be prepared to meet low-emission standards to remain competitive,” he said.
Minister Agus further explained that three years ago, the Ministry of Industry set a target of achieving net zero emissions (NZE) for the manufacturing sector by 2050—ten years earlier than the national target. “This target is a demand of today’s market. Therefore, it is our joint effort—between government and industry players—to enhance competitiveness and added value, including accelerating Indonesia’s green products to be more competitive compared to those of competitor countries,” he stated.
This press release is issued for public dissemination.
Jakarta, August 20, 2025
Public Relations Bureau
No: 309/RILIS/IND/8/2025
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