Green Economy Implementation through Indonesia Emas Framework
Indonesia Emas 2025-2045 is an ambitious vision that aims to promote sustainable development through green economy policies. This policy not only emphasises economic growth, but also environmental conservation and social welfare, in line with global development goals.
One of the main frameworks promoted in this policy is the Implementation of Indonesia’s Green Economy Gold 5 (IE5), which includes four comprehensive strategies: energy transition, low-carbon development, circular economy and green financing.
Energy transition is a key element in IE5 that aims to reduce dependence on fossil energy and increase the use of renewable energy. This will involve significant changes in the way energy is produced and consumed, including the development of renewable energy infrastructure such as solar, wind and hydro power.
In addition, this transition also includes the adoption of energy-saving and energy-efficiency technologies in various sectors, including industry, transport and households.
Low-carbon development is an important cornerstone of the Indonesia Emas policy. Its main focus is to reduce greenhouse gas emissions through various initiatives, including the application of clean technology, energy efficiency, and more sustainable management of natural resources.
In addition, low-carbon development also involves setting ambitious emissions targets for the industrial and financial sectors, in line with Indonesia’s Nationally Determined Contributions (NDC).
The circular economy is an innovative approach that aims to minimise waste and maximise resource use. Within the IE5 framework, the circular economy encourages the adoption of more efficient production and consumption practices.
Examples include recycling, reuse, and product life extension. This not only reduces pressure on the environment, but also creates new economic opportunities, including employment in the green sector.
Finally, green financing is a crucial aspect in supporting the implementation of a green economy in Indonesia. The development of financial instruments that focus on low-carbon projects, such as green bonds and green loans, is an important step in encouraging sustainable investment.
In addition, optimising multilateral financing from international donor agencies, as well as utilising carbon trading proceeds, are strategies to accelerate the achievement of green development goals.
Source: Bappenas
