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13th Asia-Pacific Eco-Business Forum
Kawasaki, 16 February 2017

Indonesian Challenges for Green Industries and AcademicContribution
Retno Gumilang Dewi and Ucok WR SiagianCenter for Research on Energy Policy
INSTITUT TEKNOLOGI BANDUNGINDONESIAOUTLINE• Green-Industry and Eco-City Indonesia• Cooperation of Industry-Academic-Government• Industry-Academic-Government Cooperation
Initiatives in Indonesia

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Green Industry Indonesia
Green Industry is characterized by:• Use of environmentally friendly raw materials• Efficient in raw material consumption• Promote 4R program (reduce, recycle, reuse,and recovery)• Low energy and water use intensity• Implement waste minimization• Use of low carbon technology

Contribute to Eco-CityEco-city• Healthy human settlement,• support economic growth• Its inhabitants live in harmony with the natural environment• minimum impact on the environment• conservation of natural resources (water, energy, air, land)• zero waste system• efficient mobility infrastructure• cultural values• promote education and R&D
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The interventions(example)
TECHNOLOGY
Process optimization
Equipment re-designProcess substitution
Improved process automation

RAWMATERIALSOPERATING PRACTICESGood housekeeping options
Worker capacity building

UTILITIES
Energy and water efficient

Renewable materials
Substituting and/or reducing
hazardous materials, ormaterials that generate nonrecyclable or re-useable waste

PRODUCTS

Product composition
PackagingRe-design
Increase durability

WASTE
Re-use/recycle
Useful application of wastematerial

Industrial symbiosis (in energy, material, waste
treatment) also may lead to green industry

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Key Elements of Good Practice in Green Industry• Commitment and leadership at the highest political level• Participatory process involving key stakeholders• Coordination across different key ministries• Alignment/linking with existing national strategies, policies,and processes.
• Long-term vision combined with the definition of short-andmedium-term goals• Broad scope and long-term character• Stimulating private investment and contribution to green
industry
Adapted from : Good Practice Analysis 2.0 on INDCs, LEDS, NAMAs and MRVInternational Partnership on Mitigation and MRV

Case of Indonesia
Good practice: Alignment/linking with existing national strategies,
policies, and processesTarget Sector: Industry
Mechanism: Incentive for industries to implement green industry
Programs:• Green Industry Award• Green Industry Standard• Ranking of Environmental Performance of Companies (“PROPER” Program)
Green Industry Award(Ministry of Industry, since 2009)“PROPER” Program(Ministry of Environment andForestry, since 1995)

Green Industry Standard(Ministry of Industry, since 20154

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Green Industry Award
Owner: Ministry of Industry
Existence: since 2009
Evaluation Parameters:• Use of environmentally friendly raw materials• Implement 4 R program: reduce, recycle, reuse, and recovery• Low energy and water use intensity• Implement waste minimization• Use of low carbon technology (preferably renewable energy)
Number of industries awarded so far: 236

Green Industry Standards
Decree of Ministry of Industry No 51/M-IND/PER/6/2015

Reference for industries in establishing green industry.
The standard covers:• raw material,• energy,• production process,• management,• waste handling and• other aspects related to green industry.
Strategy:• Greening of existing industries• Creation of new green industries954/4/2017

Green Industry Standards
Current efforts:• Implementation of green industry standards in selectedindustries: textile, tile, ceramics, cement, steel, pulp and paper• Cataloging environmentally friendly raw materials for selectedindustries: textile, tile and ceramics, and food industry• General guideline for energy conservation and CO2 emission
reduction• Technical guideline for conducting feasibility study for energy
conservation and emission reduction;• Guideline for handling of industrial waste water and hazardous
wastes10

EVALUATION OF “PROPER”

XSCO
RE

Subject to verification=WEIGHTING FACTOR

Implementation
EnvironmentalManagementSystem

NaturalResource
ConsumptionEfficiency

CorporateSocialResponsibility /Community
DevelopmentTOTA
LGOLD
Passing GradeGREEN
Passing GradeBest Practices; Best Available Technology;
Best Corporate Social Responsibility

Control of Ocean Pollution
Control of Hazardous Wastes
Control of Air Pollution
Control of Water Pollution
EIA Implementation

COMPLYBLUE

DO NOT COMPLYRED

NO EFFORTS

BLACK

15 – 20 companies receive GOLD RANK

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4/4/2017“PROPER”

Energy Efficiency Programs• Energy policy• Organization Structure and Responsibility• Plan (long term) : objective and target• Energy Audit (last 3 years)• Competency: energy auditor, training, education background• Reporting• Benchmarking : World, Asia, National• Program implementation: success of energy efficiency
measures, acknowledgment/prize, contribution to community.
Achievement of emission reduction is subject to verification
Company must prepare detail calculation of baseline emission andmitigation emission

Cooperation of Industry-Academic-Government

Provision/delivery of:Goods/products
Materials
Services
EnergyEmployment
Industry - Academic:• R&D Partnership• Consultancy• Capacity Building
Government – Academic:• R&D Partnership• Consultancy• Capacity Building

Knowledge/TechnologyEducation
Settlement
LeisurePolicy/regulation
Facilitation
Incentives

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Industry-Academic-Government Cooperation Initiatives
Ultimate objective: GHG emission reduction
Sector: Energy and Materials (when appropriate)
Framework: MRV (Measurement, Reporting, Verification)
Transparency is the backbone of Paris Agreement
Activity*):• Installation of energy monitoring device in industry• Development of bottom-up energy model (industry, city,region, national)*) Research Project of Institut Teknologi Bandung, Indonesia
andNational Institute of Environmental Studies, Japan14

The rationale
Past Trend of GHG Emission*) incl. peat fireSectors1 Energy
2 IPPU
3 Agriculture
4 LULUCF *5 WasteTotal*) including peat fireMillion ton CO2e2000
2012298508414196113505
695
61
97
1,001
1,454

Percentage
2000 2012
3035
4310851
48
67

Average annual
growth
4.5%
0.1%
1.3%
2.7%
4.0%
3.2%

Source: Draft-Indonesia 1st BUR

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Breakdown of Energy Sector Emissions
600

Residential
6%

Fugitive
4%

1%

Energy 2012
508 mill tonElectricity
Generation
34%

Transport
26%
Industry
27%

500

Million ton CO2-eq

OthersCommercial 2%

Others400

Commercial300Residential
Transport

200Industry

100Electricity Gen.

2000

2004

2008

2012

Combustion Emissions
Major sources: coal & oilUses: Power gen., industry, transport
End-use sector: 45% from fuelburning in industry;Emissions from power generation is
accounted by building (60%) andindustry (40%) sectors.
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MRV Development for Industrial Energy System

Measurement, Reporting, and Verification (MRV)
Within the context of climate change arena, MRV stand for Measurement/
Monitoring, Reporting and Verification of GHG emission.
The term MRV is originated from UNFCCC Decision 1/CP.13 – 2007, Bali
Action Plan:
Paragraph 1 (b)(ii) of the Decision underlines the need for “…. nationallyappropriate mitigation actions by developing country Parties in thecontext of sustainable development, supported and enabled bytechnology, financing and capacity-building, in a measurable, reportableand verifiable manner.

Transparency is the backbone of Paris Agreement1794/4/2017

The Needs for MRV
MRV lately become important issue within the context of NAMAs (Nationally
Appropriate Mitigation Actions), i.e. climate change mitigation actions that are inline with country development objective and in support to sustainabledevelopment.
The issue of MRV is still relevant and an important component in the global efforts
in climate change mitigations organized/managed under NDC (NationallyDetermine Contribution).
In order to have credible claim of the GHG emission reduction achieved by
implementing all mitigation efforts, including the INDC, the reduction has to bemeasured, reported, and verified (MRV-ed).
Those are the rationale that we have to continue researches that support to thedevelopment of MRV system in all sectors, including in industrial sector.

18ITB – NIES Research Toward Green Industry
Focus area: industry sector
Activities :(a) Installation of equipment to monitor energy system performance in industry *)(b) Capacity building for climate change mitigations in industry and the associatedmonitoring system(c) Modeling of Low Carbon Development incorporating mitigation actions in industry
sector*) Energy monitoring is to identify the potential of energy efficiencies measures.
When implemented will lead to green industry
The efficiency may be obtained through technological intervention at an industry
or through integration of energy system between industries in a location (i.e.
industrial park).
Other uses of monitoring: develop baseline emissionPrevious ITB - NIES Research Collaboration
AIM Modeling Research: ITB-IPB-NIES-Kyoto University- Extended Snapshot (ExSS) - Scope: National and Sub-National (DKI Jakarta)- End Use Model - Power, Industry, Transport, Commercial, Residential - Scope: National- CGE - National - for evaluating impact of national action plan (RAN) - Scope: National1910

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INDONESIA
INDUSTRIAL PARKSTOTAL: 232 SITES
71 PARKS OUTSIDE JAWA

Cilegon

JAKARTA

Bekasi & Cikarang

BOGOR
BANDUNG

Candidates for monitoring:• Glass Industry• HPL Paper and Adhesive

MODELING:
EXISTING CITY-WIDE SIMULATION: JAKARTA

20West Java Industrial Estates and Their Typical Industries

Outside Industrial Estate• Automotive (Honda, Toyota, Suzuki,Mitsubishi, etc.)• Paper Industry (Pindodeli – Karawang)• Textile raw material (Indo-Bharat Rayon, Viscose Rayon, Indorama, etc.)• Textile industry in Bandung Regency (industrial cluster)21

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Challenge / Opportunities
ITB – NIES research is not limited to the current scope/activity but also
will include:
1. Symbiosis between industries and surrounding establishments (otherindustries/consumers)
2. Promoting the results of currents research and relevant ideas to otherindustries (individual as well as to industrial park or region)
3. Integrating the plant level information for developing LCD Model inindustrial park, city, regional (province) and national level

Thank You
gelangdewi@gmail.com
ucokwrs@tm.itb.ac.id2212