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Investment minister promises more green industrial zones

Deni Ghifari (The Jakarta Post)
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Jakarta
Wed, September 18, 2024

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Investment minister promises more green industrial zones Investment Minister Rosan Roeslani shakes hands on Aug.19, 2024, following his inauguration at the Investment Ministry in Jakarta. (JP/Deni Ghifari)

I

nvestment Minister Rosan Roeslani said he is pushing for the establishment of additional green industrial zones to ensure Indonesia can compete with neighboring countries in attracting foreign investment.

The future industrial estates are to incorporate clean energy providers to accommodate foreign manufacturers’ preference for a low carbon footprint.

“It’s not that we have to, it’s just the demand; market demand that we must cater to. If we don’t, we’ll be left behind by many countries, particularly, and easily, by neighboring countries,” the minister was quoted as saying by Detik.

Speaking at the detikcom Leaders Forum in Jakarta on Tuesday, Rosan postulated that the shift to green manufacturing is an “inevitability”, noting that many foreign manufacturers of electric vehicles “champion” the use of clean energy among their business goals.

The newly installed minister said the governance of natural resources and the environment ranked among the top priorities for overseas companies’ and a driving factor behind their decisions to invest in a particular country.

Rosan went on to explain that Indonesia had a renewable energy potential amounting to 3.677 terawatts but that only a small part of that was used.

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To date, renewable sources account for 13.9 percent of the national energy mix, with around 241 megawatts of renewable electricity entering the grid since the beginning of the year, or 73 percent of the annual target of 327 MW, according to the latest data released by the Energy and Mineral Resources Ministry.

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