GREEN TRANSPORTATION AND ICT INDUSTRIES DEVELOPMENT IN INDONESIA INDONESIA GREEN INFRASTRUCTURE SUMMIT: GREEN SOLUTIONS IN ICT AND TRANSPORT 9 - 10th June 2015, the Fairmont Hotel - Jakarta

OUTLINES 1. GREEN INDUSTRY POLICY 2. GREEN TRANSPORTATION 3. GREEN ICT 4. CONCLUSION

1. GREEN INDUSTRY POLICY

1.2. GREEN INDUSTRY POLICY IN LAW NUMBER 3 OF 2014 Green Industry as one of national industry goal “industry is organized with the goal of achieving self-sustaining, competitive and advanced industry, as well as green industry” (Article 3 Point C) Definition: “Green Industry shall be any Industry with a production process which places priority on efficiency and effectiveness in the sustainable use of resources, to enable harmonization between Industrial development and the preservation of environmental functions as well as to grant benefits to the community. ”. (Article 1, Number 3)

2.1. GREEN INDUSTRY CHARACTERISTICS Efficient Material Input Usage Use of Alternative Raw Material Low Energy Intensity Low Water Intensity Competent Human Resources Waste Minimization Low Carbon Tecnology

2.2. WHY SHIFTS TO GREEN MANUFACTURING INDUSTRY CONVENTIONAL MANUFACTURING INDUSTRY SYSTEM GREEN MANUFACTURING INDUSTRY SYSTEM OBSOLETE MACHINERIES/ TECHNOLOGIES High Losses: - Energy Intensity >> - Water Intensity >> - Input Material >> In-efficient natural resources consumption Low Productivity High Waste Generation ECO-FRIENDLY/ LOW CARBON TECHNOLOGY New Machineries/ Equipments Machineries/ Equipments Modification Low Losses: - Energy Intensity << - Water Intensity << - Input Material << Natural Resources Efficiency High Productivity Zero Waste PARADIGM SHIFT GREEN INVESTMENT Cost Recovery

2. GREEN TRANSPORTATION

ROAD MAP OF NATIONAL AUTOMOTIVE DEVELOPMENT MPV, Commercial Truck up to 24 tons, SUV and small sedan energy saving and environmental friendly. 80% design of MPV and Light commercial truck. Manufacture of engine, transmission of Commercial Truck up to 24 tons, SUV and small economical small sedan . Component supplier of Commercial Truck up to 24 tons, SUV and small sedan. MPV, SUV, Small economical sedan, Commercial truck > 24 tons, Medium sedan, Hybrid car and Luxury car. 80% design of medium sedan. Manufacture of luxury car. Supplier of luxury car component. 2010 2020 2015 2025 MPV, SUV, Small sedan energy saving environmental friendly, Commercial truck > 24 tons, Medium sedan, Hybrid car. 80% design of small sedan and SUV. Hybrid engine, integrated ECU system. Component commercial truck > 24 tons, Medium sedan, Hybrid car. Production Base: MPV, Light Commercial Truck and environmental friendly vehicle. 50% motor cycle design. Manufacture of engine, MPV transmission and Light Commercial Truck. Component supplier for MPV and Light Commercial Truck.

WHY LCGC? Low Cost and Green Car Program (LCGC) Energy saving Energy Security and Blue Sky Program Fuel Consumption Saving Strengthening Vehicle Industry Structure Affordable price Local based component Energy saving Strengthening upstream and downstream related industries Green House Gases Emission Reduction Low Cost and Green Car Program (LCGC) Increase Capacity and Competency of Local Vehicle Industry Two Wheels user shifting to Four Wheels Market segment: monthly income at with IDR 4 to 8 millions Market Share: 300 - 600 thousands unit of Four Wheel Vehicle

Technical requirements WHAT IS LCGC? Definition “LCGC is Tranportation Vehicle for less than 10 (ten) passengers including driver (exclude sedan or wagon station) system with 1 (one) wheel-drive (4x2); and meet the requirements set by Minister of Industry” Technical requirements Fuel based at 980 - 1200 cc or Diesel at 1500 cc Fuel consumption: 20 km/litres Fuel Requirements: Research Octane Number (RON) 92 for fuel based type and Cetane Number (CN) 51 for diesel type Meet the requirements for ground clearance and turning radius Additional Requirements: Brand, model and logo should reflects Indonesian Value

LCGC CONTRIBUTION TO NATIONAL ECONOMY INVESTMENT Investment Commitment: about US$ 3.0 billion from automotive industries, US$ 3.5 billion from near 100 new automotive component industries TOTAL INDUSTRY Production capacity: 300,000 - 600,000 cars annually JOB OPPORTUNITIES Absorb man power (approximately) 30,000 new manpower

3. GREEN ICT

3.1. ROAD MAP OF NATIONAL ICT INDUSTRY Continuous growth and development of national ICT devices and components manufacture as supply resources for domestic market and as production basis for regional market Extension of the role of content and application industry in local and regional market 2011 - 2015 2021 - 2025 2016 - 2020 The product from animation, content and application based industries has strong competitiveness against global market The national ICT devices and components manufacture industries has been able to compete in export markets Development of national ICT devices and components manufacture industries to support ICT infrastructure development Development of animation, content and application industry for local market Development of supporting products for wireless communication

3.2. EXPORT AND IMPORT OF ICT PRODUCTS

3.3. SUPPORTING POLICY FOR ICT INDUSTRY Ministry of Industry supports the implementation of Regulation of Trade Minister 38/M-DAG/PER/8/2013 about the Import Regulation for Cellular Phone, Handheld Computer, and Tablet Computer; through policy which regulates that the importers shall establish industry in Indonesia with a maximum period of 3 (three) years. Recently, there are 7 national ICT companies operates in Indonesia PT. Hartono Istana Teknologi (POLYTRON) PT. Aries Indo Global (EVERCOSS) PT. Arga Mas Lestari (ADVAN) PT. Tera Data Indonesia (AXIOO) PT. Supertone (SPC) PT. Sinar Bintang Nusantara (GOSCO) PT. Tata Sarana Mandiri bekerjasama dengan PT. Sat Nusapersada (IVO) 3 companies are preparing to establish their industries in Indonesia PT. Samsung Electronic PT. Haier Electronic PT. Oppo Electronic

3.3. SUPPORTING POLICY FOR ICT INDUSTRY In 2014, Ministry of Industry (MoI) established ICT Development Center in Denpasar - Bali and Incubator Business Center for Content Industriy in Semarang (MoI) also hold National Festival for Creative Industry (Animation, Games and Software) Based on Quick Wins Program, MoI will Selects 5 ICT based Industry Center in Jawa-Bali, Sumatra and Sulawesi in the form of Incubator Business Center (IBC), Regional ICT Center of Excellence (RICE) and Technopark. ICT center: Bandung Technopark, IBC Semarang, RICE Denpasar, Cellular Phone Development Center in Batam and Regional Information Technology Centre of Excellence (RICE) Makassar; All of the ICT Center must be developed under green principle and use green technology (low carbon technology)

3.4. BANDUNG TECHNO PARK Initiated by Ministry of Industry since 2006

4. CONCLUSION

4. CONCLUSION Green Investment in transportation and ICT are expexted to supports Green Infrastructure Development in Indonesia; To boost the green industry implementation, Indonesia needs cooperation with other countries through regional or international organization; Establishment and development of Green Industry needs a lot of supports from all stakeholders whether national or international institutions.

Thank you Ministry of Industry Jln. Gatot Subroto Kav. 52 – 53 http://kemenperin.go.id