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GREEN INDUSTRY SCHEME IMPLEMENTATION IN INDONESIA · PDF fileGREEN INDUSTRY SCHEME...
Transcript of GREEN INDUSTRY SCHEME IMPLEMENTATION IN INDONESIA · PDF fileGREEN INDUSTRY SCHEME...
GREEN INDUSTRY SCHEME IMPLEMENTATION
IN INDONESIA
By: Lintong Sopandi Hutahaean
Head of R & D Center for Green Industry and Environment
Ministry of Industry, Republic of Indonesia
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Location: 6
°08' N and 11
°15' S, and between 94
°45' E and 141
°05‘ E
Total Area: 5.193.250 sq km
Expanse Area: 3,977 miles
Number of Registered Island: 13,466
Population: 253,609,643
Ethnic Group: 1,340
BRIEF FACTS OF INDONESIA
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RESOURCES METABOLISM OF INDONESIA
Source:
World Bank, 2015; UNEP, 2011;
Statistic Indonesia, 2016
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INDUSTRIAL SECTOR ROLE IN NATIONAL ECONOMIC
INDICATORS MEDIUM TERM PROJECTION
2015 2016 2017 2018 2019
GDP Growth (%) 5.8 6.6 7.1 7.5 8
Manufacturing Industry Growth (%) 6.1 6.9 7.4 8.1 8.6
Manufacturing Industry Contribution to total GDP (%) 20.8 21 21.1 21.3 21.3
Manufacturing Industry Export (Billion US$) 156.7 172.2 192.8 219.2 250.5
Source: National Medium-Term Development Plan 2015 - 2019 4
TOTAL FINAL CONSUMPTION (TFC) OF ENERGY BY SECTOR
Source: IEA. 2015. Energy Balances of Non-OECD Countries, OECD/IEA. Paris
GHGs EMISSION AND TFC BY SECTOR IN INDONESIA
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ACHIEVING GREEN GROWTH THROUGH DECOUPLING
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GREEN INDUSTRY DEVELOPMENT
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GREEN INDUSTRY MILESTONE
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Definition:
Green Industry shall be any Industry with a production process which places priority on efficiency and effectiveness in the
sustainable use of resources, to enable harmonization between Industrial development and the preservation of environmental
functions as well as to grant benefits to the community. .
(Article 1, Number 3)
Green Industry as one of national industry goal
industry is organized with the goal of achieving self-sustaining,
competitive and advanced industry, as well as green industry
(Article 3 Point C)
GREEN INDUSTRY POLICY IN LAW NUMBER 3 OF 2014
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OLD
AN
D O
BS
OLE
TE
MA
CH
INE
RY
/ T
EC
HN
OLO
GY
High Losses:
- Energy Intensity >>
- Water Intensity >>
- Input Material >>
In-efficient natural resources
consumption
Low Productivity
High Waste Generation
EC
O-F
RIE
ND
LY/
LOW
CA
RB
ON
T
EC
HN
OLO
GY
New Machinery/ Equipment
Machinery/ Equipment
Modification
Low Losses:
- Energy Intensity <<
- Water Intensity <<
- Input Material <<
Natural Resources Efficiency
High Productivity
Zero Waste
Cost Recovery
GREEN
INVESTMENT
PARADIGM
TRANSFORMATION
WHY TRANSFORMS TO GREEN INDUSTRY
CONVENTIONAL MANUFACTURING SYSTEM GREEN INDUSTRY MANUFACTURING SYSTEM
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IMPROVEMENT THROUGH GREEN INDUSTRY
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IMPLENTING GREEN INDUSTRY PRINCIPLES
EFFICIENCY IMPROVEMENT: LESS MATERIAL, ENERGI, MORE PRODUKTIVE, REDUCED REJECT
PRODUCTS, LESS WASTE
COMPETITIVE: SAVING, MARKET ACCEPTANCE
IMPROVEMENT OPPORTUNITIES
GREEN INVESTMENT: EQUIPMENT, TRAINING
SUPPORTING
R & D, TECHNICAL SERVICE (WASTE MANAGEMENT, ENERGY MANAGEMENT, WATER MANAGEMENT)
HIGH EFFICIENT MACHINES, EQUIPMENTS
ESCO
POLICY/REGULATION
• STANDARD
• INCENTIVE
Formulation of Green Industry Standard
PREPARATION DEVELOPMENT ACCELERATION SUSTAINABLE
Formation of
Certification Body
Certification on 8
Focused Sector Certification for other industries
Formulation of Competency Standard
Formation of
Accrediation Body Accreditation of Green Industry Certification Body
Formulation of regulation framework for Green
Industry Standard Provision
Formulation of regulation framework for
Competency Standard
Formulation of regulation
framework for Certification
Body Establishment
GR
EE
N I
ND
US
TR
Y I
NF
RA
ST
RU
CT
UR
E
Formulation of regulation
framework for Accreditation
Body Establishment
Development of National
Green Industry
Information System
Green Industry National Promotion
(Green Factory, Green Product, Green Investment, etc.)
2011 2016 2021 2026 2031
GREEN INDUSTRY MASTER PLAN (UNOFFICIAL) 12
Formulation of Priority
R&D for Green Industry
PREPARATION DEVELOPMENT ACCELERATION SUSTAINABLE
R & D Development in Ministry of Industry’s R & D Units to support Green Industry Policy
Formulation of
Priority Training for
Green Industry
Development of supportive training of Green Industry Principle and Implementation
Machinery and technology
Inventory
Formulation of industrial
sector revitalization priority
Technological need for Green Industry
INS
TIT
UT
ION
AL
CA
PA
CIT
Y O
F G
RE
EN
IN
DU
ST
RY
Formulation of
technology transfer priority
Formulation of Technology Transfer
Policy for Green Industry
2011 2016 2021 2026 2031
Industrial revitalization towards
Green Industry
Technology Transfer 13
Incentive Need Analysis
for Green Industry
PREPARATION DEVELOPMENT ACCELERATION SUSTAINABLE
Formulation of
incentive priority
Formulation of
incentive policy
Implementation of Green Industry Incentive
(Fiscal, non fiscal, monetary, license, market policy
and etc.)
Dicentive need as
supportive component
Formulation of Dicentive Policy
Implementation of Dicentive as the supportive tool
for Green Industry Implementation
Funding Analysis for Green Industry Development
GR
EE
N I
ND
US
TR
Y F
AC
ILIT
AT
ION
Identification of Funding Sources and Mechanism
Funding for Green Industry
Development
2011 2016 2021 2026 2031
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GREEN INDUSTRY AWARD
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GREEN INDUSTRY AWARD
Ministry of Industry Regulation No. 18/M-
IND/PER/3/2016 regards Green Industry Award
Green Industry Award is given to industrial
company who have implemented green
industry principle in their production process
LEGAL BASIS
Encourage and motivate industrial companies to
implement the principles of green industries OBJECTIVE
1. Production Process (70%)
2. Waste and Emission Management (20%)
3. Business management (10%)
EVALUATION
ASPECTS
Since 2010 to 2015 the award has been given to
365 green industry companies RESULT
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PRODUCTION PROCESS (70%)
- Production efficiency program; - Material inputs, energy, and water consumption; - Technological Innovation; - Human Resources competencies; - Safety Health and Environment.
WASTE AND EMISSION MANAGEMENT (20%)
- CO2e emission reduction program; - Environmental quality standards compliance; - Waste and emissions management and facilities
BUSINESS MANAGEMENT (10%)
- Certification; - CSR; - Awards; - The health of employees.
EVALUATION ASPECTS
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GREEN INDUSTRY AWARD
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CEMENT INDUSTRY
Raw Material Usage efficiency
( 1.70%)
Raw Material Subtitution Rate (10.11%)
Energy Efficiency
(6.15%)
Alternative Energy Rate (5.79%)
Water Ratio Reduction
(10.25%)
GREEN INDUSTRY AWARD IMPACT
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GREEN INDUSTRY STANDARD
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GREEN INDUSTRY STANDARD
• Green Industry standard (GIS) is classified based on Business Group Classification Standard of
Indonesia (KBLI) in 5 digits
• 8 standards has been ratified by the Minister of Industry i.e.. Ceramic Tiles; Textile on Dyeing,
Printing and Finishing; Portland Cement; Pulp and Integrated Pulp; Single Macro Nutrients
Fertilizer; Milk Powder, Crumb Rubber; and Ribbed Smoked Sheet Rubber (RSS).
• 4 standards are on finalizing stage i.e. white sugar; Basic oleo chemicals, tanneries and glass
sheet
• Currently Ministry of Industry is preparing the establishment of the Green Industry
Certification Body (GICB) and Green Industry Authorization Committee (GIAC)
• GIS will initially be voluntary, but will be enforced compulsory with some terms and
conditions.
• Industrial company who can comply with the GIS evaluation aspects and criteria will get a
certificate of Green Industry and the right to use Green Industry Logo
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GREEN INDUSTRY
STANDARD
GREEN INDUSTRY STANDARD
ON PRODUCT LIFE CYCLE
Green Industry Standard
specifically regulates on
Industrial Process, starts from
material extraction to packaging
station
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GR
EEN
IND
USTR
Y S
TAND
AR
D
EVALU
ATIO
N A
SPEC
TS
RAW MATERIAL AND AUXILIARIES
ORIGIN
SPESIFICATION
HANDLING
RATIO
ENERGY
ELECTRICITY
HEAT
RENEWABLE ENERGY
WATER CONSUMPTION
RECYCLE RATE
PRODUCTION PROCESS OEE
REJECT RATE
PRODUCT SPESIFICATION
PACKAGING
WASTE & EMISSION MANAGEMENT
WASTE MANAGEMENT
GHGs EMISSION
BUSINESS MANAGEMENT
GI POLICY
GI PROGRAM
MONEV 23
Validity Expired
(Re – Certificationi)
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GICB assigns the Green
Industry Auditor to the
company
3 The company apply the green
industry certification application to
Green Industry Certification Body
(GICB) cc Green Industry
Authorization Committee (GIAC)
1
(GICB) check the completeness
and validity of the documents as
well as the adequacy of the
auditee
2
GICB reviewing and
evaluating audit results
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Issuance of Green Industry
Certificate
(Valid for 3 years period)
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GREEN INDUSTRY CERTIFICATION SCHEME
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GREEN INDUSTRY LOGO
The Logo is formalized through Ministry of Industry Decree No. 448/M-IND/KEP/10/2015 regards
Green Industry logo
Industrial companies who have been awarded Green Industry Certificate is entitled to use the Green
Industry logo
Green Industry logo is expected to enhance the product’s brand value because the logo is a guarantee mark from the government that stated the company has implemented sustainable production process
(green industry) 25
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