Industrial Area Should Be Close to Renewable Energy Sources

By : Ridwan And Aldi Firhand. A | Saturday, November 18 2017 - 15:47 IWST

Director General of Industrial Zoning Development (PPI) of the Ministry of Industry, Imam Haryono
Director General of Industrial Zoning Development (PPI) of the Ministry of Industry, Imam Haryono

INDUSTRY.co.id - Jakarta - The Ministry of Industry (Kemenperin) approves the discourse on industrial estates nearer to renewable energy sources, thus increasing production efficiency.

"If you want to have a high competitiveness, it can be seen from the cost structure, including energy," said Director General of Industrial Zoning Development of the Ministry of Industry Imam Haryono to media crew in Jakarta yesterday.

According to Imam, Kemenperin never synchronized with the Ministry of ESDM to determine which areas are according to energy availability, suitable to be developed into an industrial area.

"From that effort, it is determined that industrial development in Indonesia is more abundant in the West, while the great energy potential of both renewable and non-renewable ones is in the East," Imam said.

For that, Imam continued, the Government of Indonesia seeks to direct the development of industrial areas to spread to the East by providing various incentives.

"The incentives, both fiscal and non-fiscal, include accelerating the development of toll roads, toll roads, railways, ports, and reducing logistics costs, in addition to fiscal incentives," Imam said.

He added that all new renewable energy types can be a source of energy for the industry, provided the quantity is sufficient, good quality, sustainable and affordable.

"If the price of energy is expensive, it is the same, it becomes inefficient and less competitive," he said.


Earlier, Minister of National Development Planning (Bappenas / Bappenas) Bambang Brodjonegoro said that Indonesia needs to make an economic breakthrough by closer industrial areas to renewable energy sources.

"There should be coordination of industrial sector and energy sector in developing renewable energy based industry, so that the development of industrial estate is directed to the location with renewable energy potential," said Bambang.

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