Towards Indonesia's Golden Vision 2045: Green and Sustainable Economic Transformation

Jakarta, INTI - To achieve the economic growth target of 6%-7% towards Indonesia's Golden Vision 2045, Indonesia cannot solely rely on the brown economy. The development of a circular economy, green economy, and blue economy is crucial.

Transforming the Economy Towards Sustainability

The process of transforming Indonesia's economy into a sustainable green economy must balance economic, social, and environmental aspects. This must align with the Sustainable Development Goals (SDGs), the Paris Agreement, Indonesia's Golden Vision 2045, and the goal of achieving Net Zero Emissions (NZE) by 2060.

"The long-term implementation of a green economy is projected to stabilize average economic growth at 6.22% until 2045, reduce emissions by 86 million tons of CO2-equivalent, and create up to 4.4 million jobs," explained Coordinating Minister for Economic Affairs Airlangga Hartarto in his virtual remarks at the opening of the Green Economy Expo 2024, themed "Advancing Technology, Innovation, and Circularity," in Jakarta on Wednesday (3/07).

Opportunities for Developing a Green Economy

A green economy is crucial for transforming into a high-income nation and escaping the middle-income trap. There are two main opportunities for developing a green economy in Indonesia:

1. Transitioning Existing Economic Activities

In the energy sector, the transition is directed through the implementation of new and renewable energy such as solar, wind, hydro, and biomass energy. "Reducing carbon emissions from coal-fired power plants through a combination of ammonia and Carbon Capture Storage (CCS) is also a primary focus. Additionally, the EV ecosystem or e-mobility needs to be continuously promoted to reduce greenhouse gas emissions from fossil fuel combustion," stated Minister Airlangga.

Currently, 152 companies have obtained the Green Industry Certificate, which provides significant economic benefits, including energy savings worth IDR 3.2 trillion per year and water savings worth IDR 169 billion per year.

2. Developing Innovative Circular Sectors and Activities

As a megabiodiversity country, Indonesia has great potential in developing the bio-economy industry. The government has developed 22 Special Economic Zones (SEZs), which need to be continuously encouraged to adopt green and circular economy principles, attracting green investments.

Currently, many startups and new businesses are applying the 9R principles of the circular economy: Refuse, Rethink, Reduce, Reuse, Repair, Refurbish, Remanufacture, Recycle, Recover. These innovations come from young people creatively seeing opportunities in implementing a circular and green economy.

The Role of SMEs in the Circular Economy

SMEs can be key players in the transition to a circular economy through repair businesses, collecting used electronic goods, and recycling waste businesses. Both startups and SMEs need support in mentoring and funding to grow and significantly contribute to the national economy.

Roadmap to the Future

In conclusion, Minister Airlangga appreciated the launch of the Circular Economy Roadmap and Action Plan and the Food Loss and Waste Management Roadmap. "These two documents will be milestones for Indonesia's green and sustainable economic future, benefiting society and the natural environment," concluded Minister Airlangga.

The transformation of Indonesia's economy towards a sustainable green economy is not only a necessity but also a significant opportunity to achieve Indonesia's Golden Vision 2045. With strategic and innovative steps, Indonesia can become a high-income country with global competitiveness.