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Jakarta Post

Incentives needed to boost green products

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Mon, February 11 2019   /  12:34 am

Businesses are asking the government to provide incentives to manufacturers who use sustainable materials for production as a way to reduce costs and increase their products’ competitiveness against the regular ones in the market.

The incentives could be in the form of a tax holiday, a tax cut, or a subsidy on environmentally friendly raw materials, said Budi Santosa, executive director of the Indonesia Business Council for Sustainable Development (IBCSD).

He argued that a high cost of production was the main problem for manufacturers that use sustainable materials. The situation created a wide price gap between environmentally friendly products and those produced using regular materials, he said.

“On average, the prices of products that use sustainable materials can be 60 percent higher than those that don’t,” Budi told The Jakarta Post after a recent high-...