GEIPP Indonesia Phase II
- Home
- GEIPP Indonesia Phase II
Expected outcomes, outputs and activities
Phase II of the Global Eco-Industrial Parks Programme – Indonesia country level intervention will achieve the expected results through two outcomes and six outputs:
Outcome 1: EIPs incentivised and mainstreamed in relevant policies and regulations
To achieve Outcome 1, the country level intervention in Indonesia will provide the following inputs:
- Advice for informed policy decision-making on integrating EIP approaches into circular economy-related and industrial policies/regulations and their implementation;
- Development of official guidance documents to help parks implement certain EIP benchmarks in a harmonised way (these guidance documents would not just be useful to tenant firms; any enterprise in the country would benefit from them);
- Fostering of market-driven and pragmatic national EIP recognition schemes including certification, awards and supporting capacity building; and,
- Supporting EIP replication and EIP investments with technical assistance in the development of national financial and non-financial incentives for EIP-related investments and creating capacities with national and sub-national institutions to deliver EIP implementation services.
Output 1.1: Integration of EIP approaches into circular economy-related and industrial policies
- Fostering the development and implementation of policies and regulations for the uptake of opportunities in the Circular Economy within eco-industrial parks (EIPs). This includes promoting CE approaches such as eco-design, remanufacturing, extending the product lifetime, reuse and recycling of water, raw materials, by-products and wastes within parks as well as the processing of wastes generated in cities by facilities in industrial parks;
- Support the development of non-financial and financial incentives by relevant national and sub-national stakeholders for industrial parks to transform into EIPs, and to promote circular economy practices (e.g., resource and service sharing, urban-industrial synergies, resource efficiency);
- Component-wise (water, material, land use, energy) EIP-specific analysis of barriers in the national regulatory setting and implementing EIP opportunities, including effective and practical means to eliminate these barriers within the timeframe of GEIPP. Facilitation of stakeholder collaborations and providing technical assistance to address and overcome regulatory barriers related to the transformation into EIPs; and,
- In the GEIPP II - Indonesia country-level intervention, the integration of EIP approaches into circular economy-related and industrial policies has been introduced within Output 1.1.
This output therefore focuses on supporting such work by addressing a number of aspects, namely the regulatory environment, incentives, stakeholder management to enhance collaboration, coordination, and alignment through the established inter-ministerial forum through the Ministry of Industry Decree 3174 of the Year 2022 to accelerate the development of EIPs in Indonesia.
Activity 1.1.1 – Circular economy policy review and update stakeholder mapping: The policy review under GEIPP II – Indonesia country level intervention will primarily focus on examining circular economy-related policies and regulations within the industrial parks. This includes assessing the policies related to renewable energy generation and utilization, waste recycling and reuse, industrial symbiosis, waste-to-energy initiatives, and identifying any barriers that hinder the implementation of circular economy options within the parks.
To facilitate this policy review, the stakeholder mapping document prepared by UNIDO during the first phase of the GEIPP – Indonesia country level intervention will be updated and expanded. The mapping will identify and include the key actors involved in the development of the circular economy within the industrial parks. This will involve mapping out potential service providers and assessing their current technical capacities in various areas, including IP transformation, EIP development, circular economy strategies, resource efficiency and cleaner production, energy efficiency, water/wastewater recycling and reuse, environmental services, and other relevant advisory services.
By updating and expanding the stakeholder mapping, a comprehensive understanding of the actors involved in promoting circular economy initiatives within the industrial parks will be obtained. This will enable effective collaboration and coordination among stakeholders and help drive the adoption of circular economy practices in the industrial park setting.
Activity 1.1.2 – Facilitate stakeholder collaboration: To overcome the barriers that impede the implementation of circular practices and business models within the industrial parks, a systematic approach will be adopted. This approach will focus on strategies such as reducing waste, replacing materials, regenerating biomass, repairing and refurbishing, re-manufacturing, reusing and recycling, promoting product-as-service models, and implementing waste-to-energy initiatives.
First, the identified barriers will be selected and prioritized for stakeholder consultations and collaboration. This will involve engaging relevant stakeholders, including government agencies, industry representatives, and experts, to gather insights and input on the barriers perceived to be most critical.
Based on the stakeholder consultations, an updated EIP Roadmap will be developed. This roadmap will outline strategies and action plans to introduce and implement circular economy aspects within the industrial parks. The aim is to create an enabling environment that supports the adoption of circular economy practices, business models, and technologies in the IPs.
These activities align with Outcome 2 of the GEIPP II – Indonesia country level intervention, which aims to demonstrate the introduction of circular economy approaches in the pilot industrial parks. Through increased coordination and collaboration between ministries, as well as enhanced cooperation among donors, policy coherence will be improved and resources will be utilized more effectively.
By updating the EIP Roadmap and fostering collaboration among stakeholders, the objective is to overcome barriers, drive the implementation of circular economy principles in the industrial parks, and ultimately create a conducive environment for circular economy practices to thrive in the IPs.
Activity 1.1.3 – Promote circular economy in relevant policies for EIPs: Phase II of the Global Eco-Industrial Parks Programme (GEIPP) – Indonesia country level intervention, under the leadership of the Ministry of Industry, will provide support and advice to the established Inter-ministerial Forum as outlined in the Ministry of Industry decree number 3174 of 2022. The objective is to integrate the principles of the circular economy into policies relevant to eco-industrial parks (EIPs).
The findings and recommendations from this activity, which focuses on promoting the circular economy within the industrial parks, will serve as a foundation for informing the development of policies that align with circular economy principles.
Through the expertise and guidance provided by the GEIPP II – Indonesia country level intervention, the Ministry of Industry and the Inter-ministerial Forum will have access to the support and advice necessary to effectively integrate the circular economy into relevant IP policies. This collaborative approach will ensure that policies and strategies are developed in line with international best practices and tailored to the specific needs and context of industrial parks in Indonesia.
By leveraging the insights gained from activity 1.1.2 and incorporating them into policy recommendations, the goal is to stimulate the adoption of circular economy practices, encourage sustainable resource management, and promote the overall transition towards a more circular and sustainable industrial sector within Indonesia’s EIPs.
Output 1.2. Fostering national EIP recognition schemes including certification, awards and supporting capacity building
- Technical assistance for the development of EIP recognition schemes in the GEIPP countries, including supporting incentives to ensure its uptake by industrial parks and their tenant companies;
- Support implementation processes and pilot testing of the EIP recognition scheme in the GEIPP countries. This includes evaluating whether existing non-financial, financial, and market-driven incentives are sufficient to sustain and replicate the EIP recognition scheme;
- Support relevant agencies in the countries in raising awareness among industrial parks about the established EIP recognition scheme, including its benefits and added value;
- Training and capacity building activities to develop and implement national EIP recognition schemes, including creating a pool of experts who can support IPs with implementing the EIP recognition scheme and obtaining certification; and,
- The activities within output 1.2 aim to enhance the progress of the initiatives implemented within Outcome 1 of the GEIPP I – Indonesia: Country level intervention.
The measurement and reporting of performance are crucial aspects of industrial park development, serving as a consistent thread throughout the implementation of Eco-Industrial Park (EIP) approaches. Given the country-specific context in Indonesia, it is important to develop a mechanism for measuring the performance of EIPs and industrial spaces to enable reporting aligned with the Sustainable Development Goals (SDGs) and Nationally Determined Contributions (NDCs). This mechanism will not only enhance the value propositions of industrial parks but also improve service delivery, support planning and development efforts, and contribute to the branding and positioning of such spaces through benchmarking.
The World Bank is actively engaged in assessing the investment requirements for greening and enhancing the competitiveness of Indonesian Strategic Economic Zones, including Free Trade Zones. The objective is to increase manufacturing output, resource productivity, and exports. In this context, a national recognition scheme will be established, incorporating indicators and benchmarks that accurately assess the competitiveness of industrial parks. These benchmarks will be aligned with the International Framework for EIPs and the aspirations of the National Framework for EIPs in Indonesia.
While these mechanisms and schemes will be tailored to Indonesia’s specific needs, they are expected to align with global developments in the field of EIPs. This alignment ensures that the performance assessment and reporting approaches used in Indonesia are in line with international best practices and enable effective comparison and collaboration with other countries.
By implementing a robust performance measurement and reporting mechanism, Indonesia can track progress, identify areas for improvement, and enhance the overall performance and sustainability of its industrial parks.
Activity 1.2.1 – Support development of EIP recognition scheme: The Global Eco-Industrial Parks Programme (GEIPP) – Indonesia country level intervention has played a crucial role in developing an initial draft of the national framework for eco-industrial parks (EIPs) in Indonesia, Under the GEIPP II – Indonesia country level intervention, continued support will be provided to the Ministry of Industry in further developing the national framework for EIPs.
The national framework for EIPs in Indonesia will outline the performance requirements in four key categories: park management performance, environmental performance, social performance, and economic performance. This comprehensive framework will serve as a guide for EIPs in the country, enabling them to meet the established performance standards and contribute to sustainable development.
The national framework for EIPs will be based on the International Framework for EIPs (version 2.0), with adjustments made where necessary to accommodate the specific context and benchmarks in Indonesia. Consideration will also be given to incorporating relevant benchmarks from the competitiveness index for Strategic Economic Zones (SEZs) in Indonesia, which includes Industrial Parks developed by the World Bank in close collaboration with the Coordinating Ministry for Economic Affairs. The proposed national recognition scheme will be implemented by the Ministry of Industry with the support from the GEIPP II – Indonesia: Country level intervention.
By aligning with international best practices and incorporating tailored benchmarks, the national framework for EIPs in Indonesia will provide a standardized and effective mechanism to evaluate and enhance the performance of EIPs. This will contribute to the overall success and sustainability of industrial parks in the country, promoting economic growth, environmental stewardship, and social well-being.
Activity 1.2.2 – Support implementation of EIP recognition scheme: Under the GEIPP II – Indonesia country level intervention, technical support will be provided to develop a supporting mechanism for the implementation of the National Framework for EIPs in Indonesia. This will include the establishment of a self-assessment or third-party assessment process to evaluate the performance of industrial parks. Additionally, the GEIPP II – Indonesia country level intervention will provide support for the development of knowledge materials and tools necessary for this assessment process.
Under the GEIPP II intervention, support will be provided to develop knowledge materials, including a handbook for implementation, a guide for practitioners, and an assessment toolkit. These resources will serve as valuable references for industrial parks in understanding and implementing the assessment process in alignment with the National Framework for EIPs. The handbook will provide detailed guidelines, best practices, and case studies, while the guide will offer practical insights and recommendations for park managers and stakeholders.
Additionally, the project will collaborate with the Ministry of Industry to establish a monitoring and assessment system specifically designed for industrial parks. This system will facilitate the collection of relevant data and information, allowing for the regular monitoring and evaluation of park performance. The assessment system will serve as a reliable basis for identifying areas of improvement, tracking progress, and ensuring compliance with the performance requirements outlined in the National Framework for EIPs.
By developing these supporting knowledge materials and implementing a robust monitoring and assessment system, the GEIPP II – Indonesia country level intervention aims to strengthen the implementation of the National Framework for EIPs and promote continuous improvement in the performance of industrial parks across the country.
Activity 1.2.3 – Create awareness of EIP recognition scheme: The GEIPP II – Indonesia country level intervention project will establish a comprehensive communication strategy to effectively disseminate information about the National Framework for EIPs. This will involve leveraging various communication channels, such as the project website, social media platforms, and other relevant channels, to reach out to stakeholders. The project website will serve as a centralized hub of information, providing updates, resources, and guidelines related to the National Framework for EIPs.
Furthermore, the project will organize an awareness event, bringing together key stakeholders, including service providers and industry representatives, to create a platform for dialogue and knowledge sharing. The event will showcase the benefits and opportunities associated with EIPs, highlight successful case studies, and facilitate discussions on the implementation of the National Framework for EIPs. Through interactive sessions, workshops, and presentations, participants will gain a deeper understanding of the framework and its potential impact on industrial parks in Indonesia.
By implementing these awareness activities, the GEIPP II – Indonesia country level intervention aims to ensure that stakeholders are well-informed and actively engaged. This will foster a supportive environment for the successful implementation of the National Framework for EIPs and promote the adoption of sustainable practices in industrial parks across the country.
Activity 1.2.4 – Build capacities on EIP recognition scheme: This activity will focus on building capacities to implement the National Framework for EIPs. To achieve this, workshops and training programmes on various provisions outlined in the National Framework for EIPs will be organized. These capacity-building initiatives will be designed to address the specific needs and challenges faced by stakeholders, equipping them with the tools and knowledge necessary to effectively implement the framework.
Furthermore, the activity will focus on creating a pool of experts who can provide ongoing support and guidance to stakeholders. These experts will be selected based on their expertise in EIP development, sustainability practices, and relevant technical areas. By building capacities through targeted workshops, train-the-trainer programmes, and the creation of a pool of experts, the GEIPP II – Indonesia country level intervention aims to strengthen the institutional and individual capabilities necessary for successful implementation of the National Framework for EIPs in Indonesia.
Output 1.3. Supporting EIP replication and EIP investments
- Technical assistance for the development of national financial and non-financial incentives for EIP-related investments and mobilization of public infrastructure investments for IPs (e.g. renewable energy, water supply/treatment/recycling, waste management and processing facilities);
- Support for national and sub-national institutions in delivering EIP implementation services, including the establishment of one or more one-stop shops. These one-stop shops will serve as centralized information hubs, providing comprehensive information on incentives and facilitating synergies with existing financial and economic incentive schemes for EIP investments at national and regional levels;
- Collaboration with national and sub-national financial institutions to provide technical assistance for possibilities of integrating or expanding EIP- and RECP-related approaches in their financing portfolios. UNIDO will provide technical assistance and collaborate with financial institutions such as the World Bank, IFC and other financial institutions to explore possibilities of EIP criteria-based lending to potential EIPs; and,
- The activities within output 1.3 aim to enhance the progress of the initiatives implemented within Outcome 2 of the GEIPP I – Indonesia: Country level intervention.
Activity 1.3.1 – Mapping of the available financing mechanisms: Technical assistance will be provided to map the existing financial mechanisms available for EIP opportunities. This activity aims to identify and assess the financial resources and instruments offered by financial institutions that focus on green investments in infrastructure for industrial parks, as well as opportunities for Resource Efficient and Cleaner Production (RECP) for tenant companies and industrial synergies for the management of industrial parks.
The mapping exercise will involve a review of the financial landscape including government initiatives, public-private partnerships, and private financing options. It will aim to identify financial mechanisms specifically targeted at supporting sustainable infrastructure development in industrial parks, such as renewable energy projects, water supply and treatment facilities, and waste management and processing facilities.
The technical assistance will involve engaging with financial institutions to gather information on their existing programmes, eligibility criteria, funding mechanisms, and application processes. This will help create a clear understanding of the available financial resources and their suitability for supporting EIP opportunities.
This information will serve as a valuable resource for industrial park management entities and tenant companies, enabling them to access the financial support necessary for implementing industrial synergies and RECP initiatives.
Activity 1.3.2 – Support delivery of EIP replication and investment: This activity will support the delivery of EIP replication and investment by creating awareness and building capacities of the financial institutions to effectively finance EIP opportunities.
To achieve this, a two-fold approach will be implemented. Firstly, awareness will be created among national financial institutions about the potential and benefits of financing EIP opportunities through workshops, seminars, and training sessions on the concept of EIPs and the specific financing needs associated with EIP development. These sessions will provide insights into the economic, environmental, and social benefits of EIPs to better equip financial institutions in assessing and supporting EIP-related investment opportunities.
Secondly, success stories from the pilot EIPs will be disseminated to showcase the positive outcomes and benefits achieved through the implementation of EIP approaches. This will highlight the tangible results, lessons learned, and the potential for wider adoption of EIP approaches among other industrial parks. By sharing these success stories, other industrial parks and stakeholders should be inspired and motivated to explore and implement similar strategies and practices.
Furthermore, the awareness activities will focus on promoting the role of EIP service providers and the range of services they offer. Information about these service providers, their expertise, and the specific support they provide in relation to EIP development and financing will be made available. This will help industrial parks and other stakeholders to identify and engage with relevant EIP service providers, who can assist them in planning, implementing, and financing EIP projects.
Activity 1.3.3 – Collaborate with financial institutions: The collaboration with financial institutions will involve engaging with multilateral banks such as the World Bank and International Finance Corporation (IFC), as well as national financial institutions and banks, to identify opportunities for financing high investment EIP opportunities in the IPs. This could include infrastructure development, renewable energy projects, water supply and treatment facilities, waste management and processing facilities, and other initiatives that align with EIP principles.
To facilitate this collaboration, technical support will be provided to these financial institutions to help them incorporate EIP and RECP-related approaches into their financing portfolios. This may involve refining measurement criteria to assess the environmental, social, and economic performance of EIP projects, as well as addressing risk profiles associated with these initiatives. The technical assistance can include capacity-building workshops, training programmes, and knowledge-sharing activities that enable financial institutions to better understand the unique characteristics and benefits of EIPs. This will empower them to make informed investment decisions. Furthermore, venture capital organizations will be engaged to explore opportunities for funding EIP initiatives in the IPs. This includes supporting start-ups and innovative projects that contribute to the implementation of EIP opportunities and industrial synergies.
Through this collaborative approach with multilateral banks, national financial institutions and banks, and venture capital organizations, the GEIPP II – Indonesia country level intervention aims to unlock financial resources and expertise to expedite the implementation of EIP opportunities in the IPs.
Outcome 2: EIP opportunities implementation, with environmental (e.g. resource productivity), economic and social benefits achieved by industrial parks and their enterprises confirmed
Outcome 2 will be achieved through the provision of the following inputs:
- Consolidation of cooperation with priority parks from GEIPP I, facilitating the creation of synergies with existing financial and economic incentive schemes as well as supporting the implementation of feasible EIP opportunities identified and progressed during GEIPP I. Additionally, fostering extended collaborations with surrounding municipalities to enable the implementation of feasible EIP opportunities;
- Scaling up the implementation of EIP opportunities in additional priority parks, providing tailored technical assistance for park management and tenant companies based on their specific needs related to any of the EIP components. This includes support in developing EIP investments for external financing, enhancing park management services and governance, RECP practices, fostering industrial, infrastructure and urban-industrial synergies, creating local and green jobs, promoting community collaborations and facilitating spatial planning and zoning; and,
- Facilitating the country-wide implementation of EIPs through partnerships and sharing of good practices, as well as establishing self-sustaining capacities among the GEIPP beneficiaries. This includes industrial park management entities, government agencies, EIP service providers, educational institutions, and financial institutions.
Output 2.1: Consolidation of cooperation with GEIPP I priority parks
- Facilitation of synergies with existing financial and economic incentive schemes and support for the implementation of feasible EIP opportunities identified and progressed during GEIPP I;
- Application of advanced company resource efficiency approaches with tenant companies on specialised topics of interest (e.g. digitalisation, hazardous waste management, material cost accounting, energy management systems and standards), including train-the-trainer programmes for EIP Service providers on these specialised topics;
- Facilitation of SME cooperation on specific topics of common interest (e.g. shared services and linking SMEs with larger industries), where possible through collaborations with SME networks;
- Conduct periodic rounds of on-site RECP assessments with tenant companies, including SMEs, to improve their resource efficiencies and identify potential industrial synergies. The activities will be extended to include company-wise EIP Gender Self-Assessments;
- Extension of collaborations with surrounding municipalities to facilitate the implementation of feasible EIP opportunities; and,
- The activities within output 2.1 aim to enhance the progress of the initiatives implemented within Outcome 2 of the GEIPP I – Indonesia: Country level intervention.
To consolidate the impact and value of phase I interventions on the priority parks (MM2100 Industrial Town, Batamindo Industrial Park, and Karawang International Industrial City), it is crucial to strengthen cooperation with, and support for, these parks. This involves facilitating the implementation of opportunities identified during the first phase of GEIPP-Indonesia country level intervention.
Activity 2.1.1 – Periodic assessment of compliance level with EIP requirements: Throughout the GEIPP – Indonesia country level intervention, regular assessments have been conducted to track the development and improvement of the priority industrial parks as they work towards becoming EIPs. These assessments follow the established baseline, utilizing the International Framework for EIPs published in 2017.
The GEIPP II – Indonesia country level intervention will build upon the previous work and establish a new baseline for the pilot industrial parks, aligning with the updated International Framework for EIPs (version 2.0). Through annual assessments, the project will continue to monitor and evaluate the progress made by the industrial parks in meeting the EIP requirements. These assessments will serve as a key tool for tracking their development, identifying gaps or challenges, and exploring further opportunities to enhance their performance.
Activity 2.1.2 – Undertake advanced RECP assessments on specific topics: Under the GEIPP II – Indonesia country level intervention, advanced Resource Efficient and Cleaner Production (RECP) assessments will be conducted on specific topics within the tenant companies of the pilot parks from the first phase of GEIPP – Indonesia country level intervention. These assessments will focus on specialized areas of interest such as pollution prevention, digitalization, hazardous waste management, material cost accounting, energy management systems and standards, and circular economy practices.
Tenant companies will be selected to participate in these advanced assessments, which will involve in-depth analysis and implementation of resource efficiency approaches. The aim is to address specific challenges and opportunities related to the identified topics, promoting sustainable practices and enhancing the companies’ environmental and financial performance.
Activity 2.1.3 – Facilitate interactions between GEIPP– Indonesia country level intervention priority parks and financial institutions: As part of the GEIPP – Indonesia country level intervention, a feasibility assessment of industrial synergies was conducted in the priority industrial parks, namely MM2100 Industrial Town, Batamindo Industrial Park, and Karawang International Industrial City. This assessment aimed to identify opportunities for collaboration and symbiotic relationships among industries within these parks, with the goal of promoting resource efficiency and sustainable practices.
In the GEIPP II – Indonesia country level intervention, there will be a focus on facilitating the interaction between the priority parks and financial institutions. This collaboration aims to support the implementation of the EIP opportunities and industrial synergies that were identified during the previous intervention and further enhanced through the advanced RECP assessments conducted under activity 2.1.2. By linking the priority parks with financial institutions, the GEIPP II intervention aims to facilitate access to finance necessary to support the implementation of high-investment opportunities.
Output 2.2: Up-scaling of EIP opportunities implementation in additional priority parks
The output will focus on training and capacity building for industrial park management entities, tenant companies (including SMEs), and other park stakeholders to meet the EIP indicators defined in the International Framework for EIP.
Activities under this output will include providing customized technical assistance to overcome the barriers the park management and tenant companies should overcome to achieve the transition to EIP. Technical Assistance could include the following:
- Developing EIP investments for external financing;
- Develop capacity for park management services and governance;
- Resource efficient and cleaner production (company-wise EIP Gender Self-Assessments); Industrial, infrastructure and urban-industrial synergies;
- Creating local and green jobs and community collaborations; and,
- Spatial planning and zoning.
To facilitate the widespread adoption of EIP practices in Indonesia, it is important to expand the activities of the GEIPP II – Indonesia country level intervention to include additional priority parks across the country. This expansion is necessary to gather a critical mass of industrial parks actively implementing EIP approaches, which will help build momentum and have a greater impact. The expansion of the intervention to additional parks will also serve as a demonstration of the benefits and impact of EIP practices in terms of competitiveness and profitability. Through tangible results and success stories from these parks, a subset of evidence will be generated, showcasing the positive outcomes of EIP implementation. This evidence can then be utilized to support the broader adoption of the EIP Framework and encourage other industrial parks in Indonesia to embrace sustainable practices.
The activities within output 2.2 aim to scale up the implementation of EIP approaches in two additional priority industrial parks.
Activity 2.2.1 – Technical assistance to additional industrial parks: Technical assistance will be extended to two additional industrial parks, namely Greenland International Industrial Center and PT Kawasan Industri Medan. These parks will benefit from dedicated support in identifying and implementing Resource Efficient and Cleaner Production (RECP) initiatives and exploring industrial synergies.
To initiate the process, a baseline assessment was conducted during the park selection process for the GEIPP II – Indonesia intervention using the International Framework for EIPs (version 2.0). This baseline assessment will serve as a reference point to evaluate the development and improvement of the additional industrial parks in alignment with the EIP requirements. The periodic assessments, which will be carried out on an annual basis, will not only monitor their progress but also identify areas for improvement and potential EIP opportunities.
As part of the GEIPP II – Indonesia country level intervention, a minimum of 10 RECP assessments will be conducted in each of the two targeted industrial parks. These assessments will evaluate the production and consumption of resources, as well as the generation of by-products, to identify opportunities for improving efficiency and implementing industrial synergies.
Feasibility assessments will also be conducted to evaluate the technical soundness, financial attractiveness, and regulatory compliance of the identified RECP opportunities. These assessments ensure that the proposed measures align with the goals and requirements of the industrial parks.
Activity 2.2.2 Capacity-building and advisory services in selected industrial parks: Capacity-building activities will be conducted to enhance the knowledge and skills of relevant personnel in industrial parks, tenant companies, and relevant authorities. These training programmes will address specific topics identified through the EIP compliance assessment conducted under activity 2.2.1. To ensure comprehensive support, UNIDO, international experts, and capable national experts will provide advisory services to address any gaps identified during the periodic assessments.
The capacity-building activities will cover various thematic areas, including RECP approaches, industrial synergies, renewable energy, energy efficiency, water/wastewater management, and solid waste management, among others. Special attention will be given to promoting gender equality by maximizing the participation of underrepresented genders, particularly women. The impact of these trainings will be measured using sex-disaggregated indicators to assess their effectiveness in promoting gender balance and inclusivity.
To ensure widespread knowledge dissemination, at least four events will be organized in each industrial park, targeting tenant companies, park management staff, and relevant authorities. These events will provide a platform for knowledge exchange, networking, and collaboration among stakeholders. The primary beneficiaries of these capacity-building activities will be the park management and local authorities, as they will gain valuable insights and skills to promote sustainable practices and drive the implementation of EIP approaches in their respective industrial parks.
Activity 2.2.3 Feasibility studies of most promising industrial synergies and support for access to finance: This activity will focus on conducting feasibility studies for industrial synergy opportunities, including supply synergies, utility synergies, service synergies, by-product synergies, and waste exchange (industrial symbiosis). These studies will encompass technical-financial analysis, impact assessments, evaluation of social feasibility, and identification and evaluation of business risks. The aim is to determine the feasibility of the identified options and assess the potential positive or negative consequences that may arise from their implementation.
The objective of these studies is to assess the technical, social, and financial feasibility of the identified industrial synergy opportunities. This involves evaluating the technical viability of the proposed synergies, assessing the potential social implications and benefits for the surrounding communities, and conducting a comprehensive financial analysis to determine the viability of the projects. The findings of these feasibility studies will provide valuable insights and guidance for decision-making regarding the implementation of industrial synergies. In addition, the project will facilitate access to finance for these high-investment opportunities through collaboration with financing institutions.
Output 2.3: Country-wide facilitation of EIP implementation and establishment of self-sustaining EIP capacities
- Training of additional EIP service providers to scale up and assist industrial parks with their transformation towards becoming an EIP, including train-the-trainer and “on the job training” concepts as well as utilising newly-trained service providers to deliver technical assistance through GEIPP;
- The EIP service providers’ pool of experts will be consolidated and expanded to create a critical mass of service providers for country-wide facilitation and scaling up EIP approaches across IPs. This pool will encompass service providers from both the public and private sectors, ranging from freelancing consultants to large consultancies, which can offer of EIP advisory services to any park in transforming into EIP.;
- Facilitation of the formation of networks and partnerships among EIP practitioners, as well as encouraging the integration of EIP contributions into to existing networks. This includes forging partnerships with academia, education and R&D institutions, industry associations, and national/regional/global financial institutions;
- Capacity building of industrial parks and their stakeholders not selected for in-depth technical assistance through GEIPP II. Building upon the results and approaches developed during GEIPP I, these capacity building efforts include online trainings on specific topics of interest as well as national and sub-national training, awareness raising, and networking events;
- Enhanced efforts to consolidate and disseminate success stories on financial savings and other benefits resulting from investments in EIP opportunities in the Programme countries, as well as the approaches applied to identify investment opportunities and overcome challenges; and,
- The activities within output 2.3 aim to enhance the progress of the initiatives implemented within Outcome 2 of the GEIPP I – Indonesia: Country level intervention and to scale up EIP approaches across IPs.
To effectively address the transition of existing industrial parks to eco-industrial parks (EIPs) in Indonesia, it is crucial to focus on stakeholder management and the expansion of expertise and support. It is acknowledged that individual industrial parks in the country may lack the necessary resources and capacity to attract their own pool of expertise. Therefore, the establishment of a central pool of expertise and knowledge is envisioned to provide support to industrial parks across the country.
Efforts have already been initiated by the Ministry of Industry to establish this support mechanism through centres for Small and Medium Industries (Industri Kecil dan Menengah, IKM), in order to implement EIP approaches. However, there is still significant work required to fully implement these approaches. Knowledge management is also a vital aspect, and this output recognizes the importance of addressing it.
One of the proposed activities that will complement activities 2.3.1, 2.3.2 and 2.3.3 is to provide technical assistance and operational support to the Ministry of Industry by the creation of an EIP Centre in Jakarta, serving as a centre of excellence for EIPs. This centre could be instrumental in raising awareness, transferring knowledge, and consolidating and disseminating success stories. The establishment of an EIP centre will receive technical support from the project.
Activity 2.3.1 – Expand EIP capacities of national service providers: To support the transformation of industrial parks into eco-industrial parks (EIPs), capacity building of additional EIP service providers and experts in relevant thematic areas is essential. These service providers and experts will play a crucial role in assisting industrial parks with their transition by providing specialized knowledge and guidance. The capacity-building efforts will focus on the thematic areas that are relevant to the benchmarks for EIPs, ensuring that the service providers and experts have the necessary expertise to support the EIP transformation process.
In addition to capacity building, the Indonesian Cleaner Production Center (ICPC) will be strengthened to play a key role in providing EIP services in Indonesia. The ICPC will be empowered to take a leading role in coordinating and delivering EIP-related services, leveraging its expertise in cleaner production and resource efficiency. This will enable the ICPC to effectively guide and support industrial parks in their journey towards becoming EIPs.
Building upon the achievements of the previous National Resource Efficiency and Cleaner Production Programme in Indonesia, the existing pool of RECP experts will be consolidated and expanded to form an EIP resource pool. This resource pool will serve as a valuable asset for providing EIP services throughout Indonesia, drawing upon the expertise and experience of the RECP experts. By leveraging this resource pool and enhancing the capacity of the ICPC, the project aims to ensure the availability of qualified EIP service providers and experts who can support industrial parks in their transformation towards sustainable and resource-efficient practices.
Activity 2.3.2 – Expand EIP capacities to a broader group of IPs and stakeholders: To ensure the broader dissemination and adoption of eco-industrial park (EIP) concepts and practices, capacity-building efforts will be extended to industrial parks and stakeholders not selected for in-depth technical assistance under the GEIPP II – Indonesia country level intervention. Building upon the results and approaches developed during the first phase of the intervention, these capacity-building activities will aim to enhance knowledge and skills on specific topics of interest related to EIPs.
Online training programmes will be organized to provide accessible and flexible learning opportunities for industrial parks and their stakeholders. This training will cover various aspects of EIP implementation, such as resource efficiency, circular economy, sustainable infrastructure development, and other relevant topics. Additionally, national and sub-national training sessions will be organized to facilitate knowledge sharing and networking among industrial parks across different regions.
Awareness-raising initiatives will be undertaken to promote the understanding and importance of EIP concepts among industrial parks and their stakeholders. This may involve organizing workshops, seminars, and events to showcase successful EIP case studies and best practices. Furthermore, capacity-building activities will include training on specific tools such as the EIP Concept Planning Tool and Master Plan Review Tool, which will benefit greenfield industrial parks in developing infrastructure aligned with the EIP approach.
To ensure a comprehensive reach, key stakeholders from both brownfield parks (existing industrial parks) and greenfield parks will be invited to participate in these training programmes and events. By extending capacity-building efforts beyond the parks selected for in-depth technical assistance, the project aims to create a wider network of industrial parks and stakeholders equipped with the knowledge and skills to drive the adoption of EIP practices across Indonesia.
Activity 2.3.3 – Consolidate and disseminate EIP success stories: To showcase the tangible benefits and achievements of GEIPP II- Indonesia country level intervention, efforts will be made to consolidate and disseminate success stories. These success stories will highlight not only the financial savings but also the environmental and social benefits that have been realized through EIP initiatives.
The project will gather and compile case studies and success stories from various industrial parks in Indonesia that have implemented EIP practices. These stories will showcase the positive impacts of investments in EIP opportunities, including improved resource efficiency, reduced environmental footprint, increased profitability, and enhanced social well-being.
The success stories will not only focus on the outcomes but also provide insights into the applied approaches and strategies that have proven effective in capturing investment opportunities within the EIP context. They will highlight innovative solutions, collaborative efforts, and valuable lessons learned, including the strategies employed to overcome challenges or barriers encountered during the implementation process.
Dissemination of these success stories will be conducted through various channels, including project websites, publications, workshops, seminars, and conferences. The aim is to reach a wide range of stakeholders, including policymakers, industry associations, investors, financial institutions, and the general public. By sharing these success stories, the project seeks to inspire and motivate others to replicate similar approaches, thereby contributing to the broader adoption of EIP practices in Indonesia.
Beneficiaries
International experience from UNIDO has demonstrated that EIPs can be useful vehicles for sustainable development in developing countries and economies in transition. The types of economic, environmental and social benefits that EIPs offer are numerous and varied, transcending conventional business case benefits:

- Reduced use of raw materials, water, energy and chemicals (toxic)
- Minimized green house gas emissions and release of pollutants
- Reduced waste through resource circularity
- Reduced economic, environmental, social risks
- Improved competitiveness and profitability
- Shared recycling facilities
- Creation of good-quality jobs
- Improved workers health and safety
- Increased quality of life for communities
- Better access to new technologies and finances



