Government Adds New Categories to Green Industry Awards: Here Are the 6 Latest Categories

In response to increasingly stringent global trade regulations emphasizing sustainability, Industry Minister Agus Gumiwang Kartasasmita emphasized the importance of strengthening Indonesia's green industrial ecosystem. This move is considered strategic, especially for national industry players looking to expand exports to developed countries.

According to Agus, global trends are shifting toward a more environmentally friendly economy. Key trading partners such as the United States, the United Kingdom, and the European Union have implemented trade policies focused on environmental and sustainability aspects. Products entering their markets must meet eco-friendly standards—from production processes to carbon footprints.

"If we want to remain competitive in the global market, there is no other choice but to transition toward a green industry," he said, as quoted by Tempo.co.

Some of the policies currently enforced by these countries include:

• United States: Imposing a polluter import fee, an additional charge for imported products deemed to contribute to pollution.
• United Kingdom: Banning imports of commodities linked to deforestation, such as uncertified palm oil products.
• European Union: Implementing the Carbon Border Adjustment Mechanism (CBAM), a carbon pricing mechanism at borders to restrict high-carbon-emission products.

These regulations directly impact the competitiveness of Indonesian export products that have not yet fully adopted green industry principles.

Minister Agus stressed that for Indonesian industries to survive and thrive amid these challenges, companies must begin adopting green industry standards and obtain green industry certifications or awards as concrete proof of sustainability practices.

"Formal recognition of a company's green practices will be a crucial added value in facing increasingly selective export markets," he explained.

Six New Green Industry Award Categories

To strengthen its commitment to sustainable development, the Ministry of Industry has officially updated regulations on the Green Industry Award through the issuance of Ministerial Regulation No. 21 of 2025 (Permenperin 21/2025). This regulation replaces the previous Permenperin No. 18/M-IND/PER/3/2016, which had been the reference for awarding environmentally friendly industries in Indonesia for nearly a decade.

The Green Industry Award is an annual government recognition for industrial companies that successfully implement energy efficiency, resource conservation, and eco-friendly principles in their production processes.

Through this new regulation, the government not only clarifies the award process but also adds six new categories relevant to the latest developments in the green industry sector.

Previously, award categories were only divided by industry scale (small, medium, and large). Now, the government has introduced six new, more comprehensive categories reflecting diverse contributions to the green industrial transformation.

Here are the latest categories introduced in Permenperin 21/2025:

1. Best Performance in Green Industry Implementation; Awarded to companies with active green industry certification and outstanding performance in resource efficiency and sustainability.
2. Transformation Toward Green Industry; For companies that, despite not yet meeting full green standards, have significantly implemented resource efficiency practices.
3. Best Green Industry Certification Body (LSIH); Awarded to LSIHs active for at least one year, having issued at least one certificate, and not under administrative sanctions.
4. Best Green Industry Auditor; For certified auditors with experience in green industry audits and assessed to have professional audit performance.
5. Best Regional Government in Green Industry Implementation; For local governments with industrial sector agencies actively facilitating green industry policies.
6. Thematic Award; For companies meeting at least two starred (**) categories and excelling in specific thematic aspects.

In addition to new categories, Permenperin 21/2025 also expands and clarifies the award process stages. Previously consisting of only three stages (selection, assessment, and awarding), the process is now divided into six main stages, all conducted through the SIINas (National Industrial Information System).

Companies or parties wishing to participate must register at least one day before selection begins, along with documents proving green initiatives and resource efficiency implementation. Required documents vary depending on the category.

Assessment Criteria: What’s Being Evaluated?

Each category has specific assessment criteria covering technical and managerial aspects. Some key indicators include:

• Energy & water efficiency
• Carbon emission intensity
• Eco-friendly technology innovation
• Green industry policies and CSR programs
• Social Return on Investment (SROI)

For regional governments, assessments focus on policies, programs, and concrete implementations supporting green industries in their regions.

Why Is This Important?

The Indonesian government has long promoted more sustainable and eco-friendly industrial practices. This award is not just recognition but also an incentive for companies and industry stakeholders to continue moving toward a low-carbon economy and resource efficiency.

However, it should be noted that any violation of regulations may result in award revocation. Therefore, participants must carefully understand the procedures and criteria outlined in Permenperin 21/2025.

Industrial transformation toward a sustainable future is not just an option—it’s a necessity. Through Permenperin 21/2025 and a more transparent and inclusive award system, Indonesia is better prepared to accelerate its national green industry agenda.

For companies, auditors, certification bodies, and local governments—now is the time to participate, contribute, and gain recognition for tangible actions in preserving the planet.