5-Year-Old’s Circular Economic Potential Reaches Rp642 Trillion

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Menteri PPN/Kepala Bappenas Suharso Monoarfa pada peluncuran laporan The Economic, Social and Environmental Benefits of A Circular Economy in Indonesia secara dating di Jakarta, Senin (25/1/2021). (ANTARA/Virna P Setyorini)
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NUSADAILY.COM – JAKARTA – The Ministry of Vat/Bappenas’s latest report entitled The Economic, Social and Environmental Benefits of A Circular Economy in Indonesia reveals the potential for circular economy implementation in five industrial sectors capable of increasing Gross Domestic Product (GDP) to Rp642 trillion.

The study, which was carried out in jointly with UNDP Indonesia and supported by the Government of the Kingdom of Denmark, focused on five main sectors. Namely food and beverage industry, textiles, wholesale and retail trade (with a focus on plastic packaging), construction, and electronics.

“The implementation of circular economy is expected to be one of the strategic and breakthrough policies to rebuild a more resilient Indonesia postCOVID-19. Through green jobs and improving process efficiency by optimizing resource utilization,” said PPN Minister/Head of Bappenas Suharso Monoarfa at the launch of the report online in Jakarta, Monday.

These 5 sectors represent almost one-third of Indonesia’s GDP and employed more than 43 million workers in 2019. If the circular economy is run there then it could potentially generate additional GDP overall. In the range of Rp593 trillion to Rp642 trillion.

Can Sustain Economic Growth

Circular economic models open up opportunities for economic actors to reduce material consumption, waste production, and emissions while maintaining economic growth. This has been successfully applied to several countries, including Denmark.

“Sustainability is at the core of the Danish state’s production philosophy. We are ready to share best practices on circular economy implementation and hope Indonesia can adopt the same process. Along with sustainable development efforts,” said Danish Environment Minister Lea Wermelin.

Meanwhile, UNDP’s Head of Representative in Indonesia Norimasa Shimomura stressed that Indonesia could get huge economic, social and environmental benefits. From the application of circular economy.

“The circular economy model allows us to reduce the consumption of materials, waste, and emissions and at the same time sustain growth and create jobs. Thus, this model is able to answer the challenges of climate change and improve the welfare of society, especially – vulnerable women, elderly citizens, children, and people with disabilities, who are actually able to play an active role in the community,” she said.

Indonesia’s Circular Economic Potential

In addition to the circular economic impact is also significant on the environment. One of them is the potential to reduce Greenhouse Gas (GHG) emissions that can help Indonesia achieve its emission reduction targets.

“Based on our analysis, the circular economy could help Indonesia achieve a reduction in GHG emissions of 126 million tons of CO2 equivalent by 2030, driven by several factors, including lower waste production, more energy-efficient alternative use, and an extension of resource life,” said Bappenas Deputy for Maritime Affairs and Natural Resources Arifin Rudiyanto.

The results of the study of Indonesia’s circular economy potential were presented at the online launch event as well as a National Webinar entitled Circular Economy to Support Green Economy and Low Carbon Development opened by The Minister of VAT / / Head of Bappenas Suharso Monoarfa, Danish Environment Minister Lea Wermelin, and Resident Representative of UNDP Indonesia Norimara Shimomura. (lal)