UNIDO Report on Industrialization Development Underlines Indonesia's Potential in Green Growth

TEMPO.CO, Jakarta - The United Nations Industrial Development Organization (UNIDO) released a report last week underlining Indonesia’s key role in decarbonization and the global energy transition.  

The report, titled ‘Turning Challenges into Industrial Solutions: The New Era of Industrial Policy,’ commended Indonesia’s pursuit of green industrial policy in manufacturing and services. It said the country’s natural deposits of critical minerals such as nickel are vital for electric vehicle batteries and carbon storage. 

A press statement of the UNIDO said Indonesia was advancing in reducing energy consumption with technical assistance from development partners including UNIDO.

“UNIDO stands ready to continue to provide policy advice to the Government of Indonesia to help the country fulfill its potential and avoid the middle-income traps through industrial innovation and the creation of decent jobs,” said Marco Kamiya, UNIDO Representative in Jakarta, as quoted from the official UN Indonesia website on Friday, July 1, 2024.

The UNIDO’s report highlighted the industrial sector’s pivotal role in sustainable development, with industrial firms holding 60 percent of green patents worldwide. Combating climate change, promoting economic growth, and generating millions of decent jobs while leveraging cutting-edge technologies are some of the recipes for sustainable industrialization, the report said. 

New industrial policies are also required to align with the sustainable development goals (SDGs), be collaborative between public and private sectors, be forward-looking, and be able to mitigate tensions.

Meanwhile, the manufacturing sector significantly contributed to employment, innovation, and the green transition.

Alas, the report said global progress towards industry-related SDGs remained slow, especially in developing countries that lag on innovation, clean energy, and decent jobs. The Asia-Pacific region, especially the Pacific islands, is set for growth but faces challenges. 

“These countries require particular attention and policies to address issues related to climate change, fiscal budget limitations, and technical assistance,” the statement concluded. 

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