Govt to Offer Incentives to Eco Friendly Companies

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  • Tempo/Adri Irianto

    Tempo/Adri Irianto

    TEMPO.CO, Jakarta - Nurmayanti, head of product standardization for the Environment and Forestry Ministry, said that her office is preparing a regulation that would offer incentives to eco friendly companies. “Pending the President’s approval,” she was quoted as saying by Metropole yesterday.

    According to Nurmayanti, the regulation will take the form of a government regulation on economic instruments for environmental protection. The regulation is based on Law No. 32/2009 on environmental management. One of the incentives offered would be an easier access to bank loans. Eco-friendly products may also be used by government agencies.

    A survey conducted by nonprofit World Wildlife Fund (WWF) Indonesia and Nielsen this year shows that 63 percent of Indonesians are willing to pay more for eco-friendly products. WWF Indonesia staffer Taufiq said that the results indicate that Indonesians are aware of the importance of using green products.

    He, however, said that several factors are hampering the use of eco-friendly products. The survey shows that the major issue is that green products are perceived as expensive. The second issue is the lack of availability of the products in stores.

    Earlier, Environment and Forestry Minister Siti Nurbaya said that the green business sector will be given incentives. The government is also promoting nine green industries: the forest energy industry, ecotourism, wildlife conservation, non-wood forest products, import substitution, waste management, microbe fermentation energy, geothermal and ecosystem restoration. The government offers easy permit application and extension as well as duty exemption.

    Indonesia Chamber of Commerce and Industry (Kadin) deputy chairperson Shinta Widjaja Kamdani said that the government should also provide incentives to prospective green infrastructure investors.