Jakarta. Industry Minister Agus Gumiwang Kartasasmita said Indonesia’s push toward greener industrial practices faces a key challenge: high upfront costs despite long-term economic and environmental benefits.

Speaking at the Investor Daily Roundtable in Jakarta on Tuesday, Agus said many businesses still perceive the green transition as a financial burden rather than an investment.

“Many industrialists see the transformation toward a green industry as a cost, not an investment,” he said. “We continue to socialize that this is not a cost; it is an investment that will bring much greater benefits, whether in the short or long term.”

Agus said the government is accelerating efforts to cut industrial carbon emissions to achieve net zero emissions (NZE) by 2060 or sooner through low-carbon manufacturing and cleaner technologies.

To help industries shoulder the cost, the government is in talks with institutions such as the World Bank for soft loan facilities. It is also preparing to launch the Green Industry Service Company (GISCO), a platform connecting the government, industries, technology providers, financiers, and carbon markets to support the green transition.

Agus said the shift may be costly at first but remains essential to strengthen Indonesia’s industrial competitiveness and sustainability in the long run.