Central Java Governor Ahmad Luthfi has affirmed that the provincial\ngovernment is providing tax incentives for industrial estates and\ncompanies that prioritise new and renewable energy as well as the green\neconomy concept.<\/p>\n
\u201cWe are giving tax incentives to industrial estates and companies\nthat implement green industry and new renewable energy,\u201d Luthfi said in\na written statement on Friday (24\/7\/2026).<\/p>\n
He made the remarks at the Jateng Green Industrial Summit 2026, held\nat the Grand Candi Hotel in Semarang, Central Java, on Thursday\n(23\/7).<\/p>\n
The provincial government has also designated green industry as one\nof the priorities in the 2025\u20132029 Regional Medium-Term Development Plan\n(RPJMD).<\/p>\n
In practical terms, this has been reinforced by Central Java Governor\nRegulation Number 26 of 2025 on the Facilitation of Green Industry.<\/p>\n
According to Luthfi, implementing green industry is no longer a\ndistant aspiration but a choice and a necessity that must be pursued\nnow.<\/p>\n
To that end, the provincial government continues to push for\nenvironmentally friendly, sustainable industry that prioritises energy\nefficiency through new and renewable energy.<\/p>\n
\u201cThat way, the international community will see that Central Java has\nimplemented a green economy and green industry,\u201d Luthfi said.<\/p>\n
Luthfi explained that the implementation of green industry must start\nfrom upstream to downstream, spanning small, medium and large industries\nalike.<\/p>\n
He said the transformation towards green industry is a strategic step\nto ensure Central Java\u2019s industries remain competitive in global supply\nchains while opening up opportunities for higher-quality investment.<\/p>\n
This is because destination countries for Central Java\u2019s processed\nmanufacturing exports have begun imposing low-carbon emission\nrequirements.<\/p>\n
\u201cI met representatives of 41 European Union countries in Solo, and\nthey said that environmental sustainability, green industry and new\nrenewable energy are necessities,\u201d Luthfi said.<\/p>\n
Luthfi expressed hope that the Jateng Green Industrial Summit 2026\nwould accelerate the green industry transformation.<\/p>\n
The forum brought together government, the business community,\nindustrial estates, universities, financing institutions and various\nstakeholders to build a stronger green industrial ecosystem.<\/p>\n
The event, organised by the Central Java Industry and Trade Office\n(Disperindag) and the Institute for Essential Services Reform (IESR),\nalso presented green industry awards.<\/p>\n
There were five award categories: the Most Active High\/Vocational\nSchool in Supporting the Rengganis Mengajar Programme; Best Small\nIndustry in Transformation Towards Green Industry; Best Large and Medium\nIndustry in Transformation Towards Green Industry; Best Green Industrial\nEstate; and Best Regional Government Committed to Green Industry\nDevelopment.<\/p>\n
IESR CEO Fabby Tumiwa said the organisation has worked with Central\nJava\u2019s Disperindag for the past three years to build green industry.<\/p>\n
This has included developing a green readiness index, assisting\ndistrict and municipal governments, establishing an industrial\nassessment centre, and other initiatives.<\/p>\n
\u201cWe have also involved universities to help small and medium\nindustries apply green industry principles,\u201d Fabby said.<\/p>\n
Fabby noted that Central Java\u2019s export value for the January\u2013April\n2026 period reached US$4.57 billion, growing 19.5% compared with the\nsame period in 2025.<\/p>\n
The main driver was the processing industry. Central Java\u2019s five\nlargest export markets are the United States, Japan, China, the\nNetherlands and South Korea.<\/p>\n
\u201cThese figures show that Central Java\u2019s exports are supported by\nmanufacturing, not raw commodities. This is an achievement, as the\nprocessing industry contributes a third of Central Java\u2019s gross regional\nproduct and absorbs the most labour,\u201d Fabby said.<\/p>\n
According to Fabby, this rapid growth is occurring in sectors and\nmarkets where the rules of the game are currently changing.<\/p>\n
One such change concerns emission reduction targets along supply\nchains. Therefore, companies producing in Central Java should begin\ntransforming towards a low-carbon green industry as soon as\npossible.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/central-java-government-prepares-tax-incentives-for-environmentally-friendly-companies-1784876005", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }