Minister Of Industry Agus: Transformation To Green Industry Is Not A Cost, But An Investment

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. (Theresia Agatha/VOI)

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita continues to encourage business actors to transform into a green industry. According to him, this transformation is not a 'cost', but as an investment.

He said, reducing carbon emissions and transitioning to green industry is one of the challenges faced by the manufacturing industry.

"We at the Ministry of Industry always try to convince, campaign that transforming towards a green industry should not be considered as a cost, but an investment. Of course we are also aware, it is easier to convey it, not a cost, but an investment," Agus said at the 2025 Annual Indonesia Green Industry Summit (AIGIS) 2nd at the JCC, Wednesday, August 20.

"Therefore, we are the government, the state must be present. The state must be present to show that the transformation to the green industry is not a cost, but an investment," he continued.

Related to this, Agus also explained the reasons why the industry should transform into a green industry. According to him, now this has become a consumer demand, especially young consumers who are increasingly choosing green products.

"When they need a product, when they want to shop or buy a product, the first time they check is whether this product is from the green industry. If they are considered not or not, they will not buy it," he said.

In addition, another reason is the growth in green financing from various world financial institutions. Currently, Agus sees that national and international financial institutions are increasingly prioritizing projects that meet Environmental, Social and Governance (ESG) criteria.

The next reason is that currently the government has encouraged the green industry through fiscal incentives, ease of investment and regulation. In addition, in terms of global policy, there are also carbon restrictions for imported products. This is stated in the Carbon Border Adjustment Mechanism (CBAM) policy.

"Let's leave the ancient thoughts that always clash between the interests of economic growth and the interests of maintaining a healthy environment, we must not hit them," explained Agus.