Ministry of Industry Prepares ESG Regulations Specifically for Industrial Sector

The Ministry of Industry (Kementerian Perindustrian – “Kemenperin”) plans to regulate standardization to regulate Environmental Social and Governance (“ESG”) specifically for the industrial sector in the form of a Regulation of the Minister (Peraturan Menteri/Permen). The Director General of Metal, Machinery, Transportation Equipment and Electronics Industry (Direktur Jenderal Industri Logam, Mesin, Alat Transportasi dan Elektronika – “Dirjen ILMATE”), Setia Diarta admitted that until now there has been no special ESG regulation in the laws and regulations in Indonesia.

“When we talk about ESG regulations in Indonesia, there is not a single regulation that regulates ESG comprehensively,” said Setia.

Setia said the urgency of the formation of this Permen is to provide certainty regarding ESG provisions, especially in the industrial sector. The preparation was carried out by the Directorate General of Regional Resilience and International Industrial Access.

It is hoped that this regulation will be able to open up opportunities for the growth of organizational resilience and also increase the reputation of trust for the industry in the community. Setia ensured that the discussion process is currently ongoing.

““Still (in) the design,” he said.