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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Circular Economy Roadmap Officially Launched

Environmental quality with biodiversity is strategic for the development of green and circular economy. Indonesia's environmental quality index is said to increase to 72.53 points by 2023.

"Indonesia continues to maintain environmental quality, given our position as one of the countries with the highest biodiversity and abundant natural resources. The environmental quality index continues to increase, reaching 72.53 points by 2023,’ said Minister of National Development Planning (PPN)/Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa during the opening of the Green Economy Expo: Advancing Technology, Innovation, and Circularity, which takes place 3-5 July 2024, at the Jakarta Convention Center.

The green economy will be the driver of the transition to sustainable economic growth. Suharso also launched two important documents, namely the Roadmap and National Action Plan for Indonesia's Circular Economy, as well as the Roadmap for Managing Food Shrinkage and Waste.

"If seriously implemented in the five priority sectors (food, electronics, plastic packaging, construction, and textiles), the circular economy has the potential to deliver high benefits to our development. For example, the circular economy could increase Indonesia's GDP by between Rp593 trillion and Rp638 trillion; create 4.4 million green jobs by 2030 with 75% of the total jobs being female workers; reduce waste generation by 18%-52% compared to business as usual by 2030, and contribute to reducing GHG emissions by 126 million tonnes of CO2,’ Suharso said.

The Ministry of National Development Planning/Bappenas is preparing an ecosystem so that the circular economy can run well because until now it has not been structured. ‘We are preparing the ecosystem to achieve the goal that the circular economy and linear economy we must provide an ecosystem from the start,’ said Director of Environment at the Ministry of National Development Planning/Bappenas Priyanto Rohmattullah in Circular Talks held in Jakarta on Wednesday.

He admitted that until now the circular economy has indeed been implemented in Indonesia, but it is still limited to movements or not yet structured. He mentioned that the circular economy has a potential of Rp500 trillion that can boost the domestic economy.

Therefore, his party is currently preparing various regulations so that the circular economy ecosystem can be formed."We have started discussing it in the Medium-Term Development Plan (RPJMN). Meanwhile, the Long-Term Development Plan is under discussion with the DPR,’ he explained.

On the same occasion, Chairman of the Standing Committee on New and Renewable Energy of the Indonesian Chamber of Commerce and Industry (Kadin), Jaya Wahono, revealed that profit is the main thing that business actors should take into account. Therefore, regulatory certainty from the government for investors is needed.

This is because investment in the circular economy is expected to return capital in a short period of time, so the support of the government's role in regulation is crucial and an important consideration for investors."Because this is a long-term investment, the regulations must also be consistent.
This means there is certainty,’ he said.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry