The Ministry of National Development Planning (PPN)/National Development Planning Agency (Bappenas) has set five priority industrial sectors in Indonesia to implement a circular economy.
Deputy for Maritime Affairs and Natural Resources at the Ministry of National Development Planning/Bappenas Arifin Rudiyanto explained that the five sectors consist of the food and beverage, textile, construction, retail sectors that focus on plastic packaging and electronics.
"These sectors are estimated to contribute up to 33 percent of Indonesia's GDP, and employ more than 43 million people in 2019," said Arifin.
Meanwhile, the implementation of a circular economy is part of low-carbon development in the 2020-2024 National Medium-Term Development Plan (RPJMN). Namely low-carbon development or the 6th National Priority program, namely "Building the environment, increasing disaster resilience, and climate change".
In addition, the implementation of a circular economy in these five sectors is estimated to increase Indonesia's GDP by IDR 593 trillion to IDR 638 trillion. "Being able to create 4.4 million new jobs, and reduce greenhouse gas emissions by 126 million tons of CO2 equivalent in 2030," added Arifin.
Arifin said the determination of circular economy priorities in 5 industrial sectors was based on the report "The Economic, Social, and Environmental Benefits of a Circular Economy in Indonesia", which was launched in January 2021 by Bappenas, the government of the Kingdom of Denmark, and the United Nations Development Program (UNDP). .
He also said the government was preparing a circular economy action plan as the second phase of the Indonesia Circular Economy Roadmap. The action plan that is being prepared is a follow-up to the results of a government study last year.