The management of plastic waste into high-value, sustainable products is part of the endeavors to drive growth of green industry and circular economy in Indonesia, Industry Minister Agus Gumiwang Kartasasmita stated.
"Circular economy is based on the reuse of goods to maximize the economic value of leftover goods. In this way, resources available in the economic environment can be continuously utilized through the use of materials in a circular and sustainable manner," Minister Kartasasmita remarked during a virtual event here on Wednesday.
Kartasasmita noted that the green industry and circular economy will be discussed at the Group 20 Summit (G20 Summit) scheduled in 2022 in Indonesia. The two topics are also part of President Joko Widodo’s agenda for Indonesia's industrial transformation to adopt industry 4.0 that is expected to be environment-friendly and sustainable.
"The president has often stated that Indonesia is encouraged to transform its green economy, technology, and products, so that we can compete in the global market," the minister remarked.
"As directed, the Ministry of Industry remains committed to encouraging the development of green industries that are efficient, environmentally friendly, and reusable, apart from waste management as an alternative energy source," he stated.
The minister noted that Indonesia currently has 1,300 plastic recycling industries, comprising 600 large industries and 700 small industries, with an investment value of Rp7.15 trillion and an annual production capacity of 2.3 million tons, with added value of over Rp10 trillion per year.
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Kartasasmita noted that the 50-percent idle capacity of the plastic recycling industry can also be optimized, so that plastic waste can be processed into new commodities to be reused as resources of economic value, including polyethylene etilen terephalate (PET) plastic bottles.
In the meantime, Minister Kartasasmita also noted that Indonesia's investment realization during the January-March 2021 period was cumulatively still high, with an investment value of Rp219.7 trillion, comprising domestic investment of Rp108 trillion and foreign investment of Rp111.7 trillion. This investment realization led to the absorption of around 311,793 workers.
"This figure shows that in the midst of the COVID-19 pandemic, Indonesia can still attract investment, as it has a fairly large market, abundant resources, an economy that continues to grow, and regulatory support from the government. Investment is also one of the drivers of national economic growth that absorbs workers in the industrial sector," he expounded.
Moreover, according to the IHS Markit report, the Indonesian Manufacturing Purchasing Managers Index (PMI) value in May 2021 was recorded at 55.3, the highest achievement in the past six years, indicating that the manufacturing industry is at an expansionary level.
"We are optimistic that construction of this PET plastic recycling facility would continue to aid Indonesia's efforts to create a green environment in line with the government's commitment to creating a green industry through positive contributions, both with PET recycling as well as sustainable efforts made by stakeholders and partners, including the local government," he added.
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Editor : Mahdani
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