Program

Expected outcomes, outputs and activities

The Global Eco-Industrial Parks Programme – Indonesia: Country level intervention will deliver the expected results via two outcomes as presented here below:

Outcome 1: EIP incentivized and mainstreamed in relevant policy and regulations

The objective of this outcome  is to increase the role of EIPs in relevant policies at the national level, aligned with the National Circular Economy Strategy (5R i.e., Reduce, Reuse, Recycle, Recovery dan Repair). With the support of SECO and UNIDO, important developments have taken place recently in Indonesia with regards to policy development in support of RECP. These important achievements now need to be leveraged by the development of policy and regulations supporting EIPs. It is expected that the integration of EIP approaches in relevant local policies and regulations will improve the competitiveness of IPs in Indonesia.

Output 1.1: Mapping of existing capacity of institutions and service providers on eco-industrial parks development

An in-depth analysis of the existing capacity of institutions and service providers and evaluation of the gaps must be undertaken to secure proper customization of all envisioned interventions to local interest and commitment, needs and windows of adaptation. According to the GEIPP project document, macro assessments will be conducted during the first year of GEIPP, and on an annual basis.

Output 1.2: Strengthened national institutions relevant to EIP policy development and implementation

According to the needs identified in the in-depth analysis, training materials will be developed and used to enhance technical skills and to coach policymakers to improve existing policies and strategies, as well as their implementation. The relevant national institutions that must be strengthened include (not all-inclusive): experts from relevant ministries, national service providers (with particular focus on the ICPC) and experts from national chambers of commerce and industrial association.

Outcome 2: EIP opportunities identified and implementation started, with environmental (e.g.resource productivity) economic and social benefits achieved by enterprises confirmed

The implementation of EIP opportunities by enterprises and industrial parks will be supported by EIP services providers (e.g. national and international consulting companies, ICPC, research institutions), and will lead to the reduction of the environmental footprint and operational and compliance costs of businesses, and an increase in their resource productivity. The GEIPP will  ocus on brownfield industrial parks only, in order to (i) secure realistic and tangible results  ithin the available time, financial and organizational resources available and (ii) comply with UNIDO environmental and social safeguard policy.

Based on the report “Selecting industrial parks for Global Eco-Industrial Parks Programme in Indonesia”, developed during the preparatory phase as well as on recommendations from the Government of Indonesia, a “model” industrial park has been selected in Indonesia: MM2100 Industrial Park in Java. This park scores high against the International EIP framework, and further potential for improvement is expected with limited financial resources from the project. As a result of interventions under GEIPP, this park should become exemplary and inspiring for others in the country and could be visited during organized tours. In this park, the project will focus on (i) the provision of specialized advisory services, and (ii) the development of synergies within and outside the parks.

Based on the application of the EIP selection tool during the preparatory phase, Batamindo Industrial Park in Batam showed positive features for inclusion in the GEIPP and good potential for performance increase, including through mainstreaming Industry 4.0 solutions. Capacity-building and technical cooperation efforts will be provided to both parks.

In addition, interested industrial park representatives – among those visited during the initial scoping phase – will be invited to attend capacity-building activities in order to increase knowledge and further raise awareness on EIP among all industrial parks in Indonesia.

Particular attention will be given to involving SMEs (with less than 250 employees) into project activities and in developing their technical capacity. The activities under this outcome will target park management entities, resident companies (sometimes SMEs) and service providers to the resident companies (usually SMEs).