Minister of National Development Planning: Indonesia's Potential in Building a Green Industry - In the virtual launching of the 2021 EU-Indonesia cooperation publication, Minister of National Development Planning said, Indonesia has the potential in terms of labor competitiveness and manufacturing capacity to build green industry. 

However, Indonesia needs to improve its legal and planning framework as well as its energy efficiency. Indonesia also has a sizeable market potential for green market, with 75% of investors interested in investing in a sustainable manner with the principles of Environment, Social, Governance , with a higher percentage of women and millennials.

In his remark, The minister conveyed transformation towards green economy from Covid-19 crisis requires a green recovery strategy. There are 3 strategic steps towards economic transformation. 

The first one is shaping responses to crisis. One of the emergence issues is an increased volume of medical hazardous waste up to 30%. In response to this, Indonesia will gradually build medical hazardous waste management facilities for Health Service Facilities in 32 locations until 2024. This could be a new potential for collaboration, particularly with the private sector.

The second step is to prepare a greener recovery strategy by building back a better Indonesia. While government keep focus on strengthening social protection and national health system, government also need to ensure a solid foundation and design for sustainable and low carbon economic interventions. This include preparing green stimulus packages and initiate green projects with long-term goals.


The third step is structural transformation which aims to strengthen economic productivity, create green jobs, and enhance resilience for future shocks. 

“We have seen that our business-as-usual approach has continuously degraded our natural resources and carrying capacity. For long-term strategy, it is crucial to maintain the sustainability of the natural resources and to consider natural carrying capacity in the national development policy formulation,” said the Minister.

Wednesday, May, 5th 2021

*Public Communications Team*

Ministry of National Development Planning/Bappenas



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Editor : G.G

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