Ministry of Industry accelerates SME transformation to implement green industry

The Ministry of Industry (Kemenperin) is accelerating the transformation of small and medium industries (IKM) to enable them to implement green industry practices as an effort to enhance competitiveness, expand market access, and support sustainable industrial development. Director General of Small, Medium, and Miscellaneous Industries (IKMA) at Kemenperin, Reni Yanita, stated that changes in global industrial dynamics have made sustainability a crucial factor in determining future industrial competitiveness. “The transformation towards green industry is no longer just an option, but a strategic necessity for Indonesian IKM players,” Reni said at the launch of the 2026 Green IKM Empowerment Programme in Jakarta on Thursday. According to Reni, the implementation of efficient, environmentally friendly, and sustainable business practices not only benefits the environment but also improves business efficiency, expands market access, opens up sustainable financing opportunities, and strengthens the competitiveness of IKM at both national and global levels. She explained that the green industry transformation must be embraced by all industry players, including IKM. The government is ensuring that this process is not only an opportunity for large industries but is also accessible to millions of IKM through mentoring, capacity building, and sustainable collaboration. To accelerate this step, Kemenperin, through the Directorate General of IKMA, is presenting the Green IKM Empowerment Programme as a strategic effort to encourage IKM to implement more competitive, sustainable, and environmentally conscious industrial activities. The programme is expected to produce IKM that apply green activities in their businesses, while also creating role models that can serve as inspiration, examples of good practice, and drivers of transformation for other IKM in various regions across the country. Reni conveyed that in support of the programme’s implementation, Kemenperin also launched a Green IKM Transformation Activity Guide Pocket Book as a practical guide for implementing green activities for IKM, as well as a Green IKM Empowerment Programme Book containing the background, indicators, and implementation stages of the programme. She added that the success of the green industry transformation requires collaboration between the government, businesses, financial institutions, academics, technology providers, associations, and various other stakeholders. Reni emphasised that strengthening IKM is an integral part of bolstering national industrial competitiveness. According to Kemenperin data, the number of IKM in 2024 reached 99.79 percent of the total industrial business units in Indonesia, or approximately 4.45 million business units. IKM is also the sector with the largest employment absorption in the industry.