Jakarta (ANTARA) - Indonesia officially joined the Industrial Deep Decarbonization Initiative (IDDI) to strengthen industrial decarbonization efforts through developing a low-carbon materials market and green public procurement.
Director for Business Climate and International Cooperation at the Government Goods/Services Procurement Policy Agency (LKPP), Dwi Rahayu Eka Setyowati, said public procurement must become an instrument for market transformation that encourages the use of low-carbon products and speeds up sustainable industrial investment.
"When the government consistently creates demand for low-carbon products, industry will receive a clear signal that investing in sustainability has real economic and market value," Setyowati said when confirmed here on Thursday.
Indonesia announced its participation in the IDDI, a global coalition coordinated by the United Nations Industrial Development Organization (UNIDO) to boost demand for low-carbon materials, earlier this month.
The announcement was made at the Regional Dialogue on Advancing Green Public Procurement in Asia, organized by LKPP in cooperation with UNIDO, Agora Industry, and Industrious Labs in Jakarta.
Alongside the announcement, a formal partnership between LKPP and UNIDO was also launched to translate high-level ambitions on Green Public Procurement (GPP) into practical implementation.
GPP is seen as a key driver to unlock green technology investment that can lower emissions, boost economic growth, and create jobs in the Asian region.
With a significant share of public spending in national expenditure, using government demand through GPP is considered able to act as a catalyst for speeding up green industrial transformation.
By setting clear green procurement standards for large-scale public works and infrastructure projects, the government can create a more predictable market for low-carbon products.
This long-term demand certainty will encourage domestic producers to innovate, increase production capacity, and speed up the development of low-carbon industry.
Over three days, policymakers, industry leaders, financial institutions, and development partners, including climate catalysts, reviewed practical frameworks for operationalizing GPP.
These frameworks include mandatory procurement standards, digital e-procurement systems, Environmental Product Declarations (EPD), and carbon footprint benchmarks for basic materials such as steel, cement, and concrete.
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Translator: Harianto, Kenzu
Editor: Azis Kurmala
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