Jakarta, December 19, 2023— The transition to a green economy is expected to have a significant impact on Indonesia, contributing up to IDR 2,943 trillion to GDP over the next 10 years and creating up to 19.4 million new jobs. A study by CELIOS and Greenpeace Indonesia shows that this transformation could also increase worker income by up to IDR 902.2 trillion and reduce inequality between provinces.
CELIOS Executive Director Bhima Yudhistira emphasized the role of the government and private sector in supporting this transition. “The government can redirect fiscal incentives from the fossil fuel and mining sectors to sustainable industrial sectors. The government must also promptly implement a carbon tax to reduce emissions generated by extractive economic activities and fossil fuels.” The private sector, Bhima said, can redirect bank lending and leverage capital markets to finance the green economy.
Leonard Simanjuntak, Head of Greenpeace Indonesia, added that political commitment is essential: “There must be strong political commitment from the government as well as presidential and vice-presidential candidates so that Indonesia can reduce its dependence on extractive industries and promptly implement the transition to a green economy. Without strong commitment, these findings will become nothing more than another item on a bookshelf.”
The transition to a green economy is expected to have a significant impact on Indonesia, contributing up to IDR 2,943 trillion to GDP over the next 10 years and creating up to 19.4 million new jobs. CELIOS and Greenpeace Indonesia’s study also shows that this transformation could increase total worker income by IDR 902.2 trillion and reduce income inequality between provinces.
CELIOS Executive Director Bhima Yudhistira emphasized the role of both government and the private sector in supporting this transition: “The government can redirect fiscal incentives from fossil fuels and extractive industries to sustainable industrial sectors. The government must also implement a carbon tax to reduce emissions from extractive economic activities and fossil fuels.” The private sector, Bhima added, can shift banking credit and leverage capital markets to finance green economy initiatives.
Leonard Simanjuntak, Head of Greenpeace Indonesia, highlighted the importance of political commitment: “Strong political commitment from the government as well as presidential and vice-presidential candidates is needed for Indonesia to reduce its dependence on extractive industries and implement a green economy transition. Without strong commitment, these findings will remain just another report on the shelf.”
Positive_Effects_of_the_Green_Economy_Transition_on_Economic_Indicators Download