RRI.CO.ID, Jakarta - Minister of Industry, Agus Gumiwang Kartasasmita, emphasized that the changing global industrial landscape requires manufacturers to look beyond product quality and production efficiency. Sustainability has now become a key factor in determining a product’s competitiveness in international markets. He made the statement in Jakarta on Thursday, July 23, 2026.

“Global consumers and businesses are paying increasing attention to sustainability throughout the supply chain. Therefore, the transition toward green industry is no longer optional. It has become a strategic necessity for Indonesia’s industrial sector, including small and medium industries (SMIs),” the minister said in an official statement.

According to Minister Agus, challenges such as climate change, rapid technological advances, shifting global trade dynamics, and increasingly stringent sustainability standards signal that future industrial competitiveness will depend not only on the final product, but also on how it is produced.

To address these challenges, the Ministry of Industry is committed to ensuring that the transition to green industry is inclusive. The transformation should be accessible to all manufacturers, including millions of SMIs, through mentoring programs, capacity-building initiatives, and collaboration with multiple stakeholders.

“The transition to green industry must be realized through concrete actions at the company level by adopting efficient, environmentally friendly, and sustainable business practices. This transformation should not benefit only large corporations, it must also be accessible to millions of SMIs across Indonesia,” Agus stressed.

As part of this commitment, the Ministry of Industry, through its Directorate General of Small, Medium, and Miscellaneous Industries (IKMA), launched the 2026 Green SMI Empowerment Program. The initiative is designed to accelerate the transformation of Indonesian SMIs, enabling them to adapt to global market demands while adopting sustainable business practices.

Director General of IKMA, Reni Yanita, said the program serves as a bridge between Indonesia’s green industry policies and the practical needs of small businesses by providing simple, practical, and phased implementation guidelines.

“The program is designed to connect national green industry policies with the real needs of SMIs through straightforward, practical, and gradual implementation,” Reni said during the program’s launch in Jakarta on Thursday.

In addition to raising awareness of the green economy, the initiative aims to strengthen the capacity of SMIs to implement more efficient, environmentally friendly, and sustainable business practices.

The Green SMI Empowerment Program is built around the acronym HIJAU (Green), which represents five core transformation values: Efficient, Innovative, Networked, Adaptive, and Excellent. Green SMIs are defined as businesses that apply the Sustainable Development Goals (SDGs) by strengthening environmental, social, and governance (ESG) practices in their operations.

Reni added that the transition toward green industry has become a strategic necessity for Indonesian SMIs.

“Implementing green business practices is expected to significantly enhance competitiveness while strengthening the long-term sustainability of Indonesia’s industrial sector,” she said.

She also highlighted the urgency of the initiative, noting that Indonesia had approximately 4.45 million SMIs in 2024, accounting for 99.79 percent of all industrial business units, according to Statistics Indonesia (BPS). Given their overwhelming presence in the national economy, transforming SMIs into greener businesses is expected to make a significant contribution to sustainable industrial development.