The implementation of a circular economy is believed to encourage higher economic growth and create new jobs in large numbers. Deputy for Economic Affairs at the Ministry of National Development Planning/National Development Planning Agency (Bappenas) Amalia Adininggar Widyasanti said that the implementation of a circular economy would create economic growth of up to 2.5 percent of GDP. "The implementation of the circular economy will contribute and become a source of new economic growth because it can create economic growth of 2.3 to 2.5 percent of GDP," he said in the Indonesia Green Economy Outlook 2022 Business Webinar, Tuesday (22/2/2022).

Amalia explained that the implementation of a circular economy will also create new jobs, up to 4.4 million jobs.

"Obviously most of these jobs will be very open to women," she said.

The implementation of the circular economy is one of the strategic sectors that will be encouraged by the government for the development of a green Indonesia.

The circular economy will be applied primarily to five priority industrial sectors, including food and beverage, textiles, construction, electronics, and retail that uses plastic packaging.

Meanwhile, based on a Bappenas study, the implementation of a circular economy can reduce waste in the five priority sectors by 18 to 52 percent compared to only the business as usual scenario in 2030.

The circular economy is also estimated to reduce the waste generated in the textile industry by up to 3.2 million tons by 2030 (-18 percent) of the waste generated by 3.9 million tons.

In addition, construction waste can also be reduced to 42.5 million tons (-20 percent) from 52.8 million tons; retail plastic packaging waste can be reduced to 4.8 million tons (-36 percent) from 7.5 million tons; and e-waste can be reduced to 1.9 million tons (-24 percent) from 2.5 million tons.