Jakarta, The PRAKARSA – Thursday (22/1/2026), The PRAKARSA held an audience with the Ministry of Industry's Green Industry Center (PIH) to explore collaborative research/mapping of fiscal and non-fiscal incentives for industry in the context of the Green Industry transition. The audience was led by the Head of the Green Industry Center, Mr. Apit Pria Nugraha, and from PRAKARSA Attended by Victoria Fanggidae, Jati Pramono, and Roby Rushandie, the meeting took place at the PIH Office of the Ministry of Industry in Jakarta.
This hearing is part of The efforts of The PRAKARSA Strengthening evidence-based policy work within the green industrial transition agenda, particularly through the Green Industrial Policy Program. The meeting focused on scoping work plans, mapping data needs, and identifying gaps in incentive implementation at the sector and supply chain levels.
During the discussion, PIH emphasized the importance of a systematic collaborative process, starting from aligning the project's vision, mission, and objectives, through in-depth scoping, to gap analysis and sharpening links with Ministry of Industry programs/policies. This approach is considered crucial for ensuring that proposals brought to the leadership level are solid and allow PIH to endorse them. PIH also encourages research collaborations to produce feasible and applicable outputs, rather than remaining as documents on a shelf.
From a non-fiscal instrument perspective, PIH explained that Green Industry facilitation currently relies heavily on the implementation of Green Industry Standards (SIH) and voluntary certification. The key strategy being promoted is "creating demand" through sustainable procurement policies (for example, through the LKPP) and the gradual prioritization of green products. PIH's presentation defines Green Industry as an industry that prioritizes the efficiency and effectiveness of sustainable resource use (Law No. 3/2014). Going forward, SIH implementation could potentially be implemented on a phased, mandatory basis, in accordance with regulatory mandates.
PIH also outlined the industrial decarbonization agenda and its associated financing needs, including the ISCO–IDCF initiative and the Green Industrial Service Company (GISCO) concept as an emission reduction aggregator/implementer. The GISCO financing scheme is targeted to mature by 2027 to assist with capital expenditure (CapEx) needs for low-carbon technologies. In addition, PIH presented plans to develop an Emission Trading System (ETS) in 2027–2028 and strengthen the MRV system through the INERS (Industrial Emission Reporting System) integrated with SIINAS. The MRV derivative, the Digital Product Passport (DPP), is considered crucial for global market access, including compliance with the Carbon Border Adjustment Mechanism (CBAM).
In line with MRV requirements, PIH is developing a Green Industry Readiness Index (GIRI) to assess industry compliance readiness from a technical, management, and data perspective. GIRI is expected to serve as a baseline for subsectors/companies, help measure implementation gaps, guide mentoring packages through the GITAP program and GISCO services, and support the curation of financing priorities/derisking through the IDCF.
As a follow-up, the parties agreed on the need for further technical discussions to map activities, data requirements, and realistic outputs. Collaboration governance options will also be explored, including the development of a Cooperation Framework (PKS) (or Cooperation Framework as a non-legalistic alternative) through the secretariat and its signing at the Agency Head/BSKJI level, in accordance with the Ministry of Industry's internal mechanisms.