Tech-Based Clean Economy: Indonesia's Key to Sustainable Growth"

Thu, 05 Sep 2024 12:18 | Green Energy | Editorial INTI

Jakarta, INTI - Indonesia is now looking to the future by prioritizing a tech-based clean economy as the key to achieving sustainable growth. This focus is crucial not only for meeting the Net Zero Emission (NZE) commitment by 2060 but also for creating green jobs and smart farming. The development of a clean economy will not only impact the environment but also open up new, long-term economic opportunities.

According to a simulation model by the World Resources Institute (WRI) Indonesia, implementing a green economy could increase Indonesia’s Gross Domestic Product (GDP) by an average of 6.3% between 2025 and 2045. Additionally, around 1.7 million new green jobs are projected to be created by 2045. This presents an opportunity that must not be missed, especially since Indonesia has great potential to become a hub for global clean technology development.

One prominent aspect of the clean economy is renewable energy. Indonesia is estimated to have a potential of up to 443.2 Gigawatts from renewable energy sources such as solar, wind, water, and biomass. Moreover, the clean-tech startup ecosystem in Indonesia is rapidly growing. Around 300 clean-tech startups are already operating, with many having reached Series A funding rounds. This shows that innovation and the development of clean technologies in Indonesia are gaining significant momentum.

Coordinating Minister for Economic Affairs Airlangga Hartarto recently made a working visit to Vancouver, Canada. During the visit, he sought to bring back clean technologies that could accelerate Indonesia’s energy transition. A clean economy based on technology in the extractive industries, renewable energy, and semiconductors was a primary focus. The collaboration is expected to accelerate Indonesia’s energy transition and create various investment opportunities in infrastructure.

The partnership between Indonesia and Canada in the clean energy sector involves several prominent companies such as Ballard Power, Westport Fuel Systems, ChopValue, and Foresight Clean Tech Accelerator. Minister Airlangga also opened the door for medium- to long-term economic cooperation with these business leaders. This collaboration will not only strengthen bilateral relations but also speed up Indonesia's efforts to achieve NZE.

In addition, Indonesia and Canada can collaborate on waste management and recycling projects, where Canada possesses advanced technology. This partnership could help Indonesia address environmental issues and support the development of a more sustainable circular economy.

With Indonesia's vast potential in the renewable energy sector and support from countries like Canada, Indonesia is on the right track to becoming a global leader in clean economy development. The actions taken now will shape Indonesia's economic future while contributing significantly to global efforts to tackle climate change.