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Sunday, 2 August 2026
Environment News

Minister Urges Green Industrial Estates to Safeguard Rp6.744 Quadrillion in Investment

Enviro News Asia, Jakarta – Indonesia’s Ministry of Environment/Environmental Control Agency (KLH/BPLH) has called for the accelerated transformation of the country’s industrial estates into environmentally sustainable hubs, emphasizing that green industrial development is essential to safeguarding Rp6.744 quadrillion in investment and maintaining Indonesia’s long-term economic competitiveness.

The commitment was reaffirmed by Minister of Environment and Head of KLH/BPLH, Moh Jumhur Hidayat, during the 25th National Working Meeting and Business Forum of the Indonesian Industrial Estate Association (HKI) in Jakarta. The forum focused on the role of industrial estates as drivers of national economic growth amid downstream industrialization, the clean energy transition, and digital transformation.

Jumhur stated that environmental protection should no longer be viewed as an obstacle to investment but rather as a fundamental requirement for attracting high-quality and sustainable investment. He noted that global investors increasingly assess industrial performance based on resource efficiency, emission decarbonization, and compliance with Environmental, Social, and Governance (ESG) principles.

“Environmental protection is not a barrier to investment, but the foundation of quality and sustainable investment,” Jumhur said.

The minister highlighted the strategic importance of Indonesia’s manufacturing sector, which currently contributes 9.44 percent to the country’s Gross Domestic Product (GDP) while providing employment for approximately 2.4 million people. Given the concentration of industrial activities and substantial investment in industrial estates, he stressed that economic expansion must be accompanied by integrated environmental management to prevent future ecological degradation.

KLH/BPLH is strengthening its oversight through evidence-based environmental policies covering wastewater management, air pollution control, hazardous and toxic waste (B3) management, circular economy implementation, and industrial decarbonization initiatives. The ministry also seeks to position itself as a strategic partner for businesses by ensuring that environmental compliance supports, rather than hinders, sustainable industrial growth.

“We want government services to be easy, affordable, fast, and secure. Speed should never come at the expense of certainty and environmental integrity. Our responsibility is to provide the best possible services to both the public and the business community,” Jumhur said.

To improve coordination and reduce bureaucratic barriers, the minister welcomed a proposal from the Indonesian Industrial Estate Association to establish a joint coordination platform, or clearing house, between the ministry and industrial estate operators.

“I agree with establishing a clearing house between our ministry and industrial estates. We must remain open to dialogue,” he said.

The proposed platform is expected to facilitate faster resolution of environmental issues by bringing together government agencies, industrial estate managers, tenant companies, academics, and local communities.

According to KLH/BPLH, the initiative is intended to demonstrate that Indonesia’s industrial estates can achieve both economic competitiveness and strong environmental governance, reinforcing the country’s commitment to sustainable development while meeting increasingly stringent international investment standards. (*)