Minister Of Industry Agus: Manufacturing Industry Grows Positively, But Consequences There Is An Increase In Emissions

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

JAKARTA - The manufacturing sector or Non-Migas Processing Industry (IPNM) grew positively by 5.60 percent until the first semester of 2025.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said this achievement was better than the national economic growth of 5.12 percent.

The IPNM sector also contributes 16.92 percent to Gross Domestic Product (GDP). Then, Indonesia's exports of manufactured products contributed to 80 percent of total national exports.

"January to July 2025 exports from national manufacturing products amounted to 80 percent. So, 80 percent of national exports came from manufactured products. And also investments entered Indonesia, both PMA and PMDN were 38.9 percent entered the manufacturing sector or Rp366.6 trillion," Agus said at the Green Initiative Conference (GIC) event at the Borobudur Hotel, Jakarta, Thursday, September 18.

Agus added, until February 2025, the number of labor absorption in the IPNM sector reached 19.6 million people or around 13.45 percent of the total national workforce.

However, in the midst of this growth trend, Agus reminded that there are consequences of increasing emissions that must be faced.

"Of course the growth from the manufacturing sector is quite driving, there are consequences. The consequences were increased emissions," he said.

Related to this, Agus said, his party continues to find solutions, one of which is through the Green Industry Service Company (Gisco). Gasco will involve investors and financial institutions to fund the transformation of the green industry.

Moreover, he continued, funding towards the green industry is considered a big cost.

According to him, the transformation of an environmentally friendly production process or towards a green industry is not a cost, but rather a medium and long term investment.

Agus said that manufacturing growth during the period 2011 to 2023 made industrial sector emissions double.

As much as 73 percent of emissions come from increasing the amount of fossil fuel energy consumed by the industry, including for its energy materials.

"If there is no effort and that must be appropriate, it is feared that by 2050 there will be two more times, greater emissions that will be produced in the manufacturing sector," said Agus.

Agus menambahkan, transisi transformasi menjadi industri hijau merupakan sebuah kebutuhan mutlak ke depannya.

"Juga keberlanjutan ekonomi secara utuh dan juga keberlanjutan hidup bangsa dan negara," pungkasnya.

Agus added that the transition to transformation into a green industry is an absolute necessity in the future.

"Also the economic sustainability as a whole and also the sustainability of the nation and state," he concluded.