Industrial estates have played an important role in global economic growth and industries operating in industrial estates also have the property to run a sustainable business. Eco-Industrial Park (EIP) is an industrial community located in an area and all of them are committed to achieving improved environmental, economic and performance performance through collaboration in managing environmental and natural resource issues.
In the midst of the recovery of the industrial sector after the pandemic conditions subsided and the commitment of the industrial sector starting from the management of environmental issues and natural resources, the Coordinating Ministry for Economic Affairs also supports EIP in Indonesia. EIP development in Indonesia is currently being carried out by the Ministry of Industry in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Swiss State Secretariat for Economic Affairs (SECO).
EIP development aims to embed industry in society that creates shared economic opportunities, better ecosystems, and innovative avenues for responsible business practices. Among the many benefits, it helps EIP improve resource efficiency and circular economy practices, bridging the environment between cities and industry with a significant contribution to cities.
Globally, EIP and in this case UNIDO with funding support from SECO are implementing the Global Eco Industrial Park Program (GEIPP) in Colombia, Egypt, Indonesia, Peru, South Africa, Ukraine and Vietnam.
The industrial estate development policy has entered the fourth generation, adapting to the intelligent and sustainable aspects of industry. The Government of Indonesia has included it in its plans for adaptation of the Sustainable Development Goals, by increasingly developing EIPs that bring innovation and infrastructure to build social and environmental environments.
In his virtual keynote speech at the A Road to G20 Event: The International Conference on Eco Industrial Parks themed “Accelerating Eco-Industrial Parks for Inclusive and Sustainable Industrialization”, Tuesday (31/05), Coordinating Minister for the Economy Airlangga Hartarto appealed to all industrial estates and Special Economic Zones to gradually shift to EIP.
“The government will formulate a policy to expand the application of the EIP concept to existing industrial areas to optimize resource utilization, reduce the use of non-renewable energy, and build a symbiotic industry by using the waste generated in the area as a raw resource. It also includes the arrangement of the environmental management system, as well as the rejuvenation of raw water and wastewater treatment plants," explained Coordinating Minister Airlangga.
On the same occasion, Minister of Industry Agus Gumiwang Kartasasmita added that this policy has become a key force in developing industrial areas that have environmentally friendly principles. Currently, there are around 135 industrial estates that occupy 65 thousand hectares of land and are under the supervision of the Ministry of Industry.
The government also promotes and encourages these industrial areas to move to apply the principles of more sustainable industrial practices with the hope that EIP can be implemented in industrial areas that already exist or are still in the planning stage.
Currently, there are three Industrial Estates that have been appointed as pilot projects for the implementation of GEIPP, namely two in West Java and one in Batam. The collaboration between Indonesia, UNIDO, and SECO through GEIPP will provide a coherent structure in the development of environmentally friendly industrial estates and its success is believed to increase resource productivity, economy, environment, social, and business performance, as well as the utilization of industrial technology 4.0.