Jakarta, INTI - The Central Java Provincial Government (Pemprov Jateng) continues to provide incentives for businesses implementing environmentally friendly principles in their region through tax incentives.
"We are providing tax incentives for industrial areas and companies that implement green industry and renewable energy," said Central Java Governor Ahmad Luthfi at the Central Java Green Industrial Summit 2026 in Semarang on Thursday, July 23, 2026.
The event was organized by the Central Java Provincial Department of Industry and Trade (Disperindag) and the Institute for Essential Services Reform (IESR) to bring together government officials, entrepreneurs, industry players, universities, financial institutions, and various stakeholders to build a stronger green industrial ecosystem.
Central Java’s Green Industry Priority
Pemprov Jateng has also designated green industry as a priority in the 2025-2029 Regional Medium-Term Development Plan (RPJMD). Implementationally, this regulation is reinforced by Central Java Governor Regulation No. 26 of 2025 concerning the Implementation of Green Industrial Facilitation.
Ahmad stated that implementing green industry must be a choice and necessity. Pemprov Jateng continues to encourage the implementation of environmentally friendly and sustainable industries, prioritizing energy efficiency through the use of new and renewable energy.
"This way, the international community will see that Central Java has implemented a green economy and green industry," said Ahmad.
He explained that the implementation of green industry starts from upstream to downstream, and is carried out by small, medium, and large industries. The transformation to green industry is a strategic step to ensure Central Java's industry remains competitive in the global supply chain and opens up opportunities for higher-quality investment.
This is being done because export destination countries for processed industrial products from Central Java are beginning to implement low-carbon emission requirements. Ahmad mentioned that representatives from 41 European Union countries in Solo stated that environmental sustainability, green industry, and new renewable energy are essential.
Emission Reduction in the Supply Chain
CEO of IESR, Fabby Tumiwa, stated that the company has been collaborating with Disperindag Jateng for three years to develop a green industry, starting with the development of a green readiness index, mentoring district/city governments, establishing an industrial assessment center, and so on.
"We also involve universities to assist small and medium-sized industries in implementing green industry principles," he said.
Fabby stated that Central Java's export value from January to April 2026 reached USD 4.57 billion, representing a 19.5% growth compared to the same period in 2025. The main driver is the processing industry. Central Java's top five export markets are the United States, Japan, China, the Netherlands, and South Korea.
"The data shows that Central Java's exports are supported by manufacturing, not raw commodities. This is an achievement, as the processing industry contributes one-third of Central Java's GRDP and absorbs the largest workforce," he said.
Fabby explained that this growth is occurring in sectors and markets where the rules of the game are currently changing. One of these is related to emission reduction targets in the supply chain. Therefore, companies and industries in Central Java must optimally begin transforming into green industries with low carbon emissions.
Conclusion
The Central Java Provincial Government is providing tax incentives for industrial areas and companies that implement green industry principles and renewable energy as part of its efforts to strengthen the green economy ecosystem. Green industry is considered crucial for increasing the competitiveness of Central Java's industry in the global supply chain, especially as export destination countries begin to implement low-carbon emission requirements.
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