Green Industry & Its Role in the Fertilizer Industry
The fertilizer industry plays a vital role in supporting national food security. However, despite its benefits, the fertilizer production process can put significant pressure on the environment if not managed properly. Therefore, Green Industry certification is a crucial standard for fertilizer factories to produce efficiently, environmentally friendly, and sustainably.
A green industry is an industry that prioritizes the efficiency and effectiveness of sustainable resource use in its production processes. The goal is to align industrial development with environmental sustainability and provide positive benefits to society.
In Indonesia, the Ministry of Industry has established Green Industry Standards (SIH), including SIH for the NPK solid fertilizer industry, as guidelines for companies to implement environmentally friendly and socially responsible manufacturing practices. Institutions such as BSPJI Palembang are competent certification bodies officially appointed to issue these certificates.
Benefits of Green Industry Certification
Resource efficiency: optimizing the use of raw materials, energy, and water.
Improved company image and competitiveness.
Improved company performance and opening up new market opportunities.
Environmental functions are better maintained & emissions are reduced
Green Industry Process in Fertilizer Production
The green industry certification process includes evaluation of technical aspects (upstream to downstream) and managerial aspects, such as:
Sources of raw and auxiliary materials
Efficient use of energy and water
Production processes and product output (packaging, quality)
Waste management and greenhouse gas (GHG) emissions
Management aspects—strategic policies, monitoring, CSR, and employment.
Companies that implement efficiency principles and minimize waste and emissions tend to have cleaner production processes, more modern technology, and more competitive performance.
Differences Between Green Industry Certified Fertilizer Factories and Non-Certified Fertilizer Factories
⚙️ Technical Aspects of Green Industry Audits
Green industry certification audits on fertilizer factories not only assess documentation but also cover technical operational aspects.
🔹 Raw Materials & Auxiliaries
Without Certification: Raw material selection is driven by price and availability, without considering the environmental footprint or sustainable sourcing. The use of auxiliary additives can also create hazardous residues.
With Certification: Raw materials are prioritized from environmentally friendly sources, additive use is efficient, and a traceability system is in place to ensure quality. The use of hazardous chemicals is minimized or replaced with safe alternatives.
🔹 Water & Energy
Without Certification: Water and energy consumption is higher due to the lack of efficiency standards. Cooling and boiler systems tend to be wasteful, and there are no efforts to utilize renewable energy.
With Certification: Factories have water recycling systems to reduce clean water use and implement energy efficiency programs with energy intensity indicators. Some factories also utilize biomass, natural gas, or solar panels as supporting energy sources.
🔹 Production Process & Packaging
Without Certification: The production process is solely focused on output volume. Energy overuse, higher dust emissions, and packaging is still predominantly made from single-use plastic.
With Certification: The production process is optimized with efficient technology, particle emission controls, and automation systems to reduce waste. Packaging is directed towards recyclable or biodegradable materials to reduce plastic waste.
🔹 Waste & Greenhouse Gas (GHG) Emissions
Without Certification: Liquid, solid, and gaseous waste are only managed to meet minimum permit requirements. GHG emissions are high due to the lack of an emission monitoring system.
With Certification: Waste is processed using a zero-waste approach, for example, recycling solid waste into derivative products. GHG emissions are monitored, reported, and targeted for reduction through scrubber technology, waste heat recovery, or carbon capture.
🌱 Green Industry Audit Management Aspects
The Green Industry Certification Audit assesses management aspects that form the foundation of the fertilizer industry's sustainability.
🔹 Policy & Organization
Without Certification: The company does not have a formal policy related to energy efficiency, waste management, or sustainable resource use. The organizational structure often lacks a dedicated unit overseeing sustainability.
With Certification: There are written policies and a clear organizational system for managing environmental, energy, and social aspects. There are dedicated units such as the Sustainability Division or Environmental Management Team.
🔹 Strategic Planning
Without Certification: Long-term planning focuses more on profitability and production without considering carbon emissions, energy consumption, or resource efficiency.
With Certification: The company has a green-oriented strategic plan, such as targets for reducing greenhouse gas emissions, efficient energy use, and environmentally friendly product innovation.
🔹 CSR & Employment
Without Certification: CSR programs tend to be general and do not focus on environmental impacts. Workforce protection is also suboptimal, especially in terms of occupational health and safety.
With Certification: CSR programs are oriented toward sustainability, such as reforestation programs, water efficiency around the factory, and empowerment of local communities. The company ensures the well-being of its workforce through stricter Occupational Health and Safety (K3) standards.
🔹 Implementation & Monitoring
Without Certification: Monitoring of the production process is usually conducted solely for operational purposes, without measurable sustainability indicators.
With Certification: The production process is monitored using sustainability indicators such as energy intensity, carbon footprint, waste management, and supply chain sustainability. Internal and external audits are conducted regularly.
Long-Term Impact
Without Certification: Risk of soil and ecosystem degradation, making the company more vulnerable to new regulations.
With Certification: Healthier soil, a more sustainable environment, and a more competitive company with export opportunities.
Mahkota Fertilizer Green Industry Certification
Green Industry Certification is not just a label, but tangible proof that a fertilizer factory manages its raw materials, production processes, waste, and management according to sustainable principles. For farmers, choosing fertilizer from a certified industry means supporting a healthier environment while also receiving a product with guaranteed quality.
By adopting the Green Industry certification, Mahkota Fertilizer affirms its commitment to fertilizer production that:
Efficient in resource use
Responsible in waste and emissions management
Supports the highest product quality while maintaining environmental sustainability and soil fertility
Through this approach, the resulting fertilizer products not only boost crop yields in a healthy and safe manner but also strengthen sustainable agricultural ecosystems—in line with Mahkota Fertilizer's vision to support and encourage the development of a greener and more resilient Indonesian agriculture and plantation sector.
📌 Reference Sources:
Kementerian Perindustrian RI. Peraturan Menteri Perindustrian No. 13 Tahun 2019 tentang Standar Industri Hijau.
Kemenperin. Pusat Industri Hijau (SIAGREEN).
International Fertilizer Association (IFA). Sustainable Fertilizer Production.
Kementerian Perindustrian RI. (2022). Konsep Industri Hijau.
Kementerian Perindustrian RI. (2021). Panduan Efisiensi Energi pada Industri Pupuk.
Kementerian Perindustrian RI. (2023). Pedoman Sertifikasi Industri Hijau.
UNIDO. (2019). Green Industry Initiative for Sustainable Industrial Development.
ISO. (2015). ISO 14001: Environmental Management Systems.
OECD. (2020). Greening Global Value Chains.
FAO. (2021). The Role of Fertilizers in Sustainable Agriculture.