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Eco-Industrial Estates Opportunities for Indonesia and examples from around the world

Eco-Industrial Estates Opportunities for Indonesia and examples from around the world Policy Advice for Environment and Climate Change Kebijakan Lingkungan dan Perubahan Iklim (PAKLIM). Kementerian Perindustrian, 19.07.2012. About us.

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Eco-Industrial Estates Opportunities for Indonesia and examples from around the world

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  1. Eco-Industrial Estates • Opportunities for Indonesia and examples from around the world • Policy Advice for Environment and Climate Change • KebijakanLingkungandanPerubahanIklim (PAKLIM) Kementerian Perindustrian, 19.07.2012

  2. Aboutus • As an international cooperation enterprise for sustainable development with worldwide operations, the federally owned Deutsche GesellschaftfürInternationaleZusammenarbeit (GIZ) GmbH supports the German Government in implementing its development policy objectives. • GIZ operates in 130 countries worldwide, with approximately 17,000 staff members worldwide • In Indonesia we work in three priority areas: private sector development, good governance and climate change • We implement three climate change programmes, one of them is PAKLIM with the components policy advice, cities and urban areas and industries and industrial estates Eco Industrial Park Concepts for Indonesia

  3. Eco-Industrial Development & Eco-Industrial Parks “An eco-industrial park or estate is a community of manufacturing and service businesses located together on a common property. Member businesses seek enhanced environmental, economic, and social performance through collaboration in managing environmental and resource issues.” Eco Industrial Park Concepts for Indonesia 3

  4. Efficient estate management • Energy efficiency and renewable energy • Improved performance of companies Material flows, exchange, conservation of natural resources • Compliance with environmental standards • Waste water management and disposal • Hazardous waste management Eco Industrial Park Concepts for Indonesia 4

  5. Challenges in industrial estates • Many countries are investing heavily in industrial areas to attract local and international investors • There is high pollution but also high potential for savings in cost and environmental impact • Developers’ priority is to set up attractive sites with plots at a low selling price; less consideration of efficient management and long-term costs • Infrastructure and buildings are of high focus – provision of services and management are not • Demand/interest from governmental authorities and companies to receive for support to establish attractive industrial areas is high – but little initiation using own resources to develop action in this respect Eco Industrial Park Concepts for Indonesia

  6. Possible Eco-Criteria in Industrial estates • Mobility, transport • Land useoptimization • Air pollutionprevention • Noise prevention • Environmental Mgmt System • Renewableenergy • Energyefficiency • Wastemanagement • Watermanagement • Biodiversity • Material flow • Cultural, social, health benefits Eco Industrial Park Concepts for Indonesia

  7. Norway Kalundborg, DK Canada Great Britain Germany Netherlands Halifax. CAN France Austria Minneapolis, MI Londonderry, NH Italy China Portugal Devens, MA U S A Japan Cape Charles, VA Tunisia Mexico Taiwan India Thailand Philippines Fiji El Salvador Indonesia Australia • Global initiatives to develop eco-industrial estates Ghana Eco Industrial Park Concepts for Indonesia

  8. GIZ/PAKLIM support • Policies and governance for addressing climate change • Capacity development for decision makers: public & private • Business models & tools for sustainable estate management • Stakeholder consultation, dialogue forums, community advisory panels, etc. • International networks • Technology cooperation Eco Industrial Park Concepts for Indonesia

  9. Economic advantages • increase in efficiency/ productivity/ profitability • reduced operational costs • reducedcostsforwastedispoal • incomethroughserviceprovision • imageimprovements • risingForeignDirect Investments • optionsfor Public Private • Partnerships Eco Industrial Park Concepts for Indonesia

  10. Environmental advantages • establishmentofeco-innovative solutionsreduceleadto • moreresourceefficientproductions • savingofnaturalresources • decreaseofambientairandwater • pollution • decreasedclimateimpact • becauseoflesscarbonemissions • securedeco-systemsandbiodiversity Eco Industrial Park Concepts for Indonesia

  11. Advantages forsurroundingcommunities • increaseofemploymentopportunities • increase in demandforlocalserviceprovision • tax incomeincreases • reductionsof environmental • pollution, health-problems • rise in life-quality • Options forparticipatory • decisionmaking • estheticsurroundings Eco Industrial Park Concepts for Indonesia

  12. Perindustrian 2005: 63 industrial estates 165 industrial estates by 2009 in Java alone Eco Industrial Park Concepts for Indonesia

  13. Industrial estates in Indonesia • Industrygrowth rate of 6.2% in 2011 • Government Regulation 24/2009 • The enforcement of the regulation should strengthen the development of industrial estates as a center for manufacturing industries supported by infrastructure, facilities, and services • 3-phased development (MoI): • Development of industrial estates built and managed by the public sector (1st generation) • Development of industrial estates by the private sector where government controls/supervises (2nd generation) • … upcoming: modern and sustainable industrial estates focused on specific criteria (3rd generation) Eco Industrial Park Concepts for Indonesia

  14. Industrial Estates – support in thepast • EU Asia Pro Eco (2007-2008), implementedby GIZ Eco Industrial Park Concepts for Indonesia

  15. Case Study: Maspion- Sustainable Management of Industrial Areas (SMIA) Eco Industrial Park Concepts for Indonesia

  16. EconomicBenefits Less losses due to accidents an higher productivity (less power cuts) Organisational Benefits Reliable electricity supply Improved image of IA Efficient maintenance Health and Security BenefitsSafe electricity system Case Study- KITM Safer electricity system throughcontrol panels Problem and its causes Substandard electric network and control panels due to lack of control by IA management Shortcuts Risk of accidents Environmental Benefits Measures Co-ordination with state electricity company (PLN) Repair of panels, wiring and safety system co-operation of KI and PLN Installation of warning signs in dangerous areas Improved electricity supply system according to standard Eco Industrial Park Concepts for Indonesia

  17. Case Study: Advisory Services in Environmental Management (ASEM) in India • Infrastructure improvements (waste water treatment, sewage & drainage systems, etc.) • Guidelines / standards for the establishment of new industrial estates • Environmental performance improvement in individual companies • Institutional strengthening of the regional development agency for industrial estates Results Eco Industrial Park Concepts for Indonesia

  18. Site Master Planning & Environmental Impact Assessement for new industrial parks Definition of block sizes Renewable energy Zoning of industries Roads, rail links, corridors to port CETP, disposal APSEZ, Visakhapatnam Waste management Parking facilities Emergency exits, fire services Potable, industrial, fire fighting water Green belts Environment Centre Protected areas – natural features, recharge areas etc. Eco Industrial Park Concepts for Indonesia

  19. Country example: South Korea • Korea National Cleaner Production Center (KNCPC) and the Korea Institute of Industrial Technology (KITECH) launched in 2005 a 15-year program to promote eco-industrial parks • The Ministry of Commerce, Industry, and Energy (MOCIE) commissioned the Korea Industrial Complex Corporation (KICOX) to manage 24 complexes (77.6% of all industr.) • Objective: optimizing the industrial structure and maximizing value-added activities; support of inter-firm collaboration, etc. • Examples of activities: • utilization of steel waste as a substitute for scrap metal (3 large companies cooperate in this by-product recovery network) • Centralized steam production systems (produced by waste-to-energy facilities) Eco Industrial Park Concepts for Indonesia

  20. Lessons learnt so far: • Environmental andeconomicpoliciesshouldbe well-connected • Emission savingalonedoes not motivatesufficiently • Sourcing challengesforenergy, water, etc. favourtheengagement in ressource- andecoefficiency • Cleaner productionarises not automatically - supportfrom outside is essential foritssuccess • Economicincentives (tax reductions, PPPs, etc.) facilitatethestrivingforresults • A multi-levelapproachandflexibility (mix ofinstruments) isneeded • Ownership ofthe park managementandpolitical will areimportantforthesustainabilityofoursupport Eco Industrial Park Concepts for Indonesia

  21. Int. Conference: Greening Industrial Areas – Examples and ways to go forward 09.-10.10.2012 in Jakarta, Ministry of Industry, Indonesia • Kick-off forfutureactivities • Screening ofinterestsandneeds • Invitations will bedistributedsoon • Intereststopresentas a speaker? • Special topicsrequested? Eco Industrial Park Concepts for Indonesia 18.7.2012

  22. Thankyou.TerimaKasih. Contact: Andandita Susanto GIZ c/o KementerianPerindustrian Lt. 20 Jl. GatotSubrotoKav. 52-53 Anandita.susanto@giz.de

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