The Green Industry Standards (SIH) are a pivotal guideline for industrial companies in Indonesia, designed to ensure efficient production processes while championing environmental responsibility. These standards establish a comprehensive assessment system that meticulously measures the extent to which industries adopt green principles, optimize raw material and energy efficiency, manage waste effectively, and uphold robust corporate governance.
Reinforced by Law No. 3 of 2014, SIH serves as a primary reference for industrial players committed to minimizing their environmental footprint without compromising production performance. This legal framework underscores Indonesia’s dedication to fostering a sustainable industrial ecosystem.
In line with these commitments, the Ministry of Industry Regulation (Permenperin) No. 14 of 2020 designates the BBSPJIKB as the official Green Industry Certification Body (LSIH016). This crucial entity is entrusted with the vital role of auditing industrial facilities and issuing certifications to those that successfully meet the stringent green criteria, thereby verifying their adherence to sustainable practices.
According to Sri Gadis Pari Bekti, Head of the Decarbonization Team at the Ministry of Industry’s Green Industry Center, SIH is structured around two equally important pillars: technical requirements and management requirements. She emphasized, “There are two requirements, technical and management. Actually, neither is a priority; both are priorities. Without top management’s commitment, technical requirements will not succeed.” This highlights the indispensable link between leadership commitment and successful environmental implementation.
The management requirements within SIH encompass a broad spectrum of organizational aspects critical for fostering a culture of sustainability. These include robust policy formulation and organizational structures, strategic planning, effective implementation and vigilant monitoring, regular internal audits and management reviews, a strong commitment to Corporate Social Responsibility (CSR), and comprehensive human resource management practices.
Significant progress has been made in the adoption of these standards. As of October 2025, the Ministry of Industry reported the issuance of 72 SIH Numbers and 40 related Ministry of Industry Regulations. Furthermore, 40 SIH Numbers have already achieved certification, culminating in a total of 159 issued certificates. Efforts continue as several other standards are in their final stages, awaiting ratification by the Minister of Industry before being forwarded to the Ministry of Law and Human Rights for official enactment.
The technical requirements of SIH address six core aspects designed to drive resource efficiency and significantly reduce emissions:
- Raw materials must be utilized efficiently, encouraging the adoption of renewable sources and promoting closed-loop systems for material reuse.
- Energy management mandates effective strategies, actively promoting the transition towards new and renewable energy sources.
- Water conservation is paramount, guided by the 3R principles (reduce, reuse, recycle), including the innovative reuse of process water within industrial operations.
- Production processes are optimized through rigorous performance measurement (Overall Equipment Effectiveness – OEE) and a strategic shift towards cleaner, more advanced technologies.
- Products and packaging must not only meet high-quality standards but also be thoughtfully designed for reusability, recyclability, or biodegradability.
- Waste management necessitates the application of cutting-edge technologies capable of meeting stringent environmental quality standards.
- Greenhouse gas emissions (GHG), particularly CO2 emissions from industrial activities, are a major contributor to global warming. SIH addresses this by driving comprehensive emission reduction strategies across all technical aspects.
Echoing the progressive approach, Sri Gadis Pari Bekti also noted, “Within SIH, we also apply the principle of circular economy. Formerly 3R, then 5R, and now up to 10R. Such principles drive the decarbonization process.” This commitment to an evolving circular economy framework underscores Indonesia’s proactive stance in achieving industrial decarbonization and promoting a truly sustainable future.
Summary
The Green Industry Standards (SIH) are pivotal guidelines for Indonesian industrial companies, promoting efficient production while ensuring environmental responsibility through a comprehensive assessment system. Reinforced by Law No. 3 of 2014, SIH serves as a primary reference for industries committed to minimizing their environmental footprint. The BBSPJIKB acts as the official Green Industry Certification Body, auditing facilities and issuing certifications for adherence to these stringent criteria. SIH is structured around equally important technical and management requirements, emphasizing the need for strong leadership commitment.
The management requirements encompass organizational aspects like policy, planning, and CSR, while technical requirements address six core areas including efficient raw material and energy use, water conservation, optimized production processes, sustainable products and packaging, effective waste management, and greenhouse gas emission reduction. Significant progress has been made, with 72 SIH Numbers issued and 159 total certificates as of October 2025. Furthermore, SIH integrates evolving circular economy principles, like the 10R framework, to actively drive industrial decarbonization and foster a sustainable future.
