VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

VOInews, Jakarta: Implementing a green economy can support national economic growth of more than 6% and create more than 4.4 million jobs by 2045. Green economy is one of the supporting factors for economic transformation to get out of the middle income trap. This was conveyed by Coordinating Minister for Economic Affairs Airlangga Hartarto in his virtual speech at the opening of the Green Economy Expo 2024, themed "Advancing Technology, Innovation and Circularity", in Jakarta on Wednesday (3/7).

"The implementation of the green economy in the long term is projected to stabilise economic growth at an average of 6.22% until 2045, reduce emissions by 86 million tonnes of CO2 equivalent and create up to 4.4 million jobs," he said.

According to a written statement from the Coordinating Ministry for Economic Affairs, obtained by Voice of Indonesia in Jakarta on Thursday (4/7/2024), there are two opportunities that can be exploited in developing a green economy. "The first opportunity is the transition of 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," the Coordinating Ministry for Economic Affairs wrote.

The green and circular economy will help industries in Indonesia to be competitive in terms of sustainability. "Currently, there are 152 companies that have Green Industry Certificates, and of course the number is expected to increase in the future. These Green Industry Certificates provide economic benefits, including energy savings worth Rp 3.2 trillion per year and water savings worth Rp 169 billion per year," he continued.

The second opportunity is to create new economic growth centres through the development of innovative circular sectors and activities, including sustainable natural resource-based industries or bio-economy, blue economy and waste utilisation. "As one of the megabiodiversity countries, the bio-economy industry in Indonesia has great potential for development. The government has developed 22 special economic zones (SEZs), which need to be encouraged to adopt green and circular economy principles so that they can be widely recognised and attract green investment," said the Coordinating Ministry for Economic Affairs.

It is known that many start-ups and new companies have emerged whose core business is based on the 9R principles of circular economy, namely Refuse - Rethink - Reduce - Reuse - Repair - Refurbish - Remanufacture - Recycle - Recover. The startup is an innovation of creative young people, who see an opportunity gap in the implementation of the circular economy and green economy. "MSMEs can also be the main actors in the transition to a circular economy. For example, repair businesses, used electronics collection and waste recycling businesses. Both start-ups and MSMEs need mentoring and financial support for their business development to grow big and contribute significantly to the national economy," Airlangga said.

Airlangga also welcomed the launch of the Circular Economy Roadmap and Action Plan and the Food Waste and Waste Management Roadmap. "These two documents will be a milestone for the future of Indonesia's green and sustainable economy, which will benefit both society and the archipelago's nature," Airlangga concluded.