- The Ministry of Industry is taking steps to enhance the competitiveness of Indonesia’s manufacturing industry by applying the principles of sustainable development through the implementation of the Green Industry Standard (Standar Industri Hijau – "SIH").
- The Head of the Standardization and Industrial Services Policy Agency (BSKJI) at the Ministry of Industry, Andi Rizaldi, has stated that the implementation of the SIH should help with various issues and challenges in the future, including climate change and decarbonization. Broadly speaking, Green Industry covers three pillars of sustainability, specifically economic, environmental, and social.
- Mr. Rizaldi has also stated that through the implementation of the SIH, Indonesia is aiming to achieve its Social Development Goals, Environmental Development Goals, Nationally Determined Contribution and Net Zero Emissions target for the manufacturing industry sector by 2050 or earlier. The development of the SIH will prioritize several areas, including Green Public Procurements, which will hopefully safeguard domestic products by meeting regulatory changes in export destination countries, particularly in terms of the Carbon Border Adjustment Mechanism. In addition, the SIH will also be applied to Company Benefit Weight (Bobot Manfaat Perusahaan/BMP), as well as compliance with provisions that address Domestic Content Levels (Tingkat Kandungan Dalam Negeri/TKDN).
- Furthermore, the SIH will serve as a set of Non-Tariff Measures that should be able to counter the ongoing influx of imported products and meet origin-related criteria under the framework of free trade cooperation with partner countries. Overall, the implementation of the SIH should help Indonesia achieve its sustainable development goals and increase the competitiveness of its manufacturing industries. (ANT)
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