Indonesia uses Green Public Procurement to drive sustainable industrial investment

Dwi Rahayu Eka Setyowati, Director for Business Climate and International Cooperation at the Government Goods/Services Procurement Policy Agency, stated that public procurement must function as an instrument for market transformation. This strategy aims to encourage the use of low-carbon products and accelerate sustainable industrial investment. Indonesia also announced its participation in the IDDI, a global coalition coordinated by the United Nations Industrial Development Organization, to boost demand for low-carbon materials.

Government demand through Green Public Procurement is considered a catalyst for speeding up green industrial transformation in the region. By consistently creating demand for low-carbon products, the government provides a clear signal that investing in sustainability holds real economic and market value. This initiative aims to unlock green technology investment that could lower emissions and boost economic growth.

Market shifts are requiring organizational adaptation in Indonesia amid global market pressures, influencing company operations within the country.