A new report on circular economy presents strong case for increasing Indonesia’s GDP while saving the environment

January 25, 2021

Magelang (2019). masruro / Shutterstock.com

Jakarta, January 25th, 2021 – Indonesia’s economy could grow by USD 45 billion by 2030 with lower emission and waste through the full adoption of a zero-waste circular economy model in five key sectors, according to a new report, launched today by the Ministry of National Development Planning (Bappenas), in partnership with the United Nations Development Programme (UNDP), and with support from the Government of Denmark.

Titled “The Economic, Social, and Environmental Benefits of Circular Economy in Indonesia” the report was presented at an online launching event presided over by former Indonesian Vice President, Mr. Jusuf Kalla, Minister of National Development Planning/ Bappenas, Mr. Suharso Monoarfa, Denmark’s Minister for Environment, Ms. Lea Wermelin and UNDP Indonesia Resident Representative, Mr. Norimara Shimomura.

The five key sectors which the report focuses are food and beverages, textiles, wholesale and retail trade (with focus on plastic packaging), construction, and electronics. Around 4.4 million new jobs could be created by 2030 with the full implementation of circular economy model by the five sectors, according to the report.

Circular economy model requires manufacturers and companies to reduce material consumption, waste and emissions whilst at the same time sustaining growth.

“The implementation of a circular economy is expected to be one of the strategic policies and breakthroughs in rebuilding a more resilient Indonesia after the COVID-19 pandemic, with the creation of green jobs and through increased efficiency of resource utilization.,” said Mr. Monoarfa.

“I believe Indonesia will benefit on a large scale during a transition to a more CE and I am sure that the report will also reveal large positive potential for Indonesia’s environment, nature and climate mitigation efforts ” said Ms. Wermelin.

“I hope the report will pave the way for the next step namely the formulation of a national the strategy with an action plan and central road maps,” she added.

UNDP Indonesia Resident Representative, Mr.Norimasa Shimomura said circular economic is a model that could support growth and address climate change challenges as well as improve the lives of Indonesia’s most vulnerable communities - at the same time.

“The Circular Economy model allows us to reduce material consumption, waste and emissions while at the same time sustaining growth and creating jobs. This way, the model is conducive to addressing the challenges of Climate Emergency while improving the well-being of our people, most importantly those in need of support – vulnerable women, elderly, children, persons with disability, who in fact can play much more active roles in their communities.” He added.

Click here to download the full report



UNDP Indonesia Communication Specialist, Tomi Soetjipto, suryo.tomi@undp.org

Denmark Embassy, Agrivickona Ario Vicaksono, agrvic@um.dk