In achieving the economic growth target of 6-7 percent towards the vision of a Golden Indonesia 2045, Indonesia does not only depend on the brown economy , but also builds a circular economy, green economy and blue economy . The process of transforming the Indonesian economy into a sustainable green economy must balance economic, social and environmental aspects, in line with the SDGs, the Paris Agreement, the Golden Indonesia 2045 vision, and be able to achieve the Net Zero Emissions (NZE) target in 2060.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that implementing a green economy in the long term is projected to stabilize economic growth by an average of 6.22 percent until 2045, reduce emissions by 86 million tons of CO 2 equivalent, and create up to 4.4 million jobs. . According to him, a green economy is also important in realizing economic transformation towards a high-income country equivalent to developed countries, and getting out of the middle income trap . There are two opportunities that can be exploited in developing the green economy.
The first opportunity is the transition to existing economic activities. In the energy sector, transition efforts are directed through the application of new and renewable energy such as solar, wind, hydro and biomass energy. Airlangga Hartarto said that the Government was reducing carbon emissions from PLTU through a combination of ammonia and Carbon Capture Storage (CSS). Furthermore, the EV or e-mobility ecosystem needs to continue to be encouraged to reduce greenhouse gas emissions due to burning fuel.
A green and circular economy will help industry in Indonesia to be competitive in terms of sustainability. Currently, there are 152 companies that have a Green Industry Certificate, and of course it is hoped that this will increase in the future. This Green Industry Certification provides economic benefits, namely energy savings worth IDR 3.2 trillion per year and water savings worth IDR 169 billion per year.
Meanwhile, the second opportunity is to create new centers of economic growth through the development of innovative circular sectors and activities, including industries based on sustainable natural resources or bio-economy, blue economy and waste utilization industries. As one of the megabiodiversity countries , the bio-economic industry in Indonesia has great potential to continue to be developed. The government has developed 22 Special Economic Zones (KEK) which need to continue to be encouraged to adopt green economy and circular economy principles so that they can be widely recognized and attract green investment.
Now, many new businesses or startups have emerged that have a core business that applies the 9R principles of circular economy, namely Refuse – Rethink – Reduce – Reuse – Repair – Refurbish – Remanufacture – Recycle – Recover. This startup is an innovation by creative young people who see gap opportunities in the implementation of a circular economy and a green economy.
Coordinating Minister for the Economy, Airlangga Hartarto, said that MSMEs could also be the main actors in the circular economy transition. For example, repair businesses, collecting used electronic goods, and waste recycling businesses really need mentoring and funding support for business development so that they can grow large and contribute significantly to the national economy.
Airlangga also appreciated the launch of the Circular Economy Roadmap and Action Plan as well as the Roadmap for Management of Dairy and Food Waste. This can be a milestone in the future of the Indonesian economy which is green and sustainable and beneficial for the people and nature of the archipelago.
On the other hand, Member of the DPR RI, Dyah Roro Esti, through the Green Economy Caucus of the DPR RI, emphasized the opportunities that can be obtained by supporting the green economy, one of which is by creating jobs. There are many contributors to carbon emissions in Indonesia. There is the energy sector, industrial sector, waste sector and forestry sector.
Dyah emphasized focusing on the opportunities that can be created in the green economy. The government is considered to be able to create around 4.4 million jobs involving the role of women and other parties across sectors.
The target of the green economy is to increase innovation and investment in sustainable development. There are several benefits from implementing a green economy, such as encouraging technological innovation and sustainable development, reducing unemployment and increasing welfare.
Meanwhile, the Head of Bappenas, Suharso Monoarfa, said that the Government is committed to maintaining environmental quality with biodiversity which is very strategic for the development of a green and circular economy. According to him, a green economy will create more sustainable investment, capital and infrastructure, jobs and skills in order to realize social welfare and environmental sustainability.
If implemented seriously, it is hoped that the green economy can advance shared prosperity and prosperity through various innovations, of course by emphasizing five priority sectors, namely food, electronics, plastic packaging, construction and textiles in order to increase Indonesia’s GDP in the range of IDR 593-638 trillion by 2030.
There are many roles that cross- stakeholders , ministries and the DPR have to play in producing new and derivative policies that can encourage greener economic growth.
With commitment and cooperation from all parties, Indonesia can realize a sustainable green economy that provides significant benefits for national economic development and growth