Jakarta – Yayasan Kesejahteraan Berkelanjutan Indonesia (SUSTAIN) says Indonesia risks becoming just a market for green products from other countries, without a clear green industrialisation strategy. The green economy brings great opportunities for countries that are ready to adapt, but also serious risks for those that are left behind.
SUSTAIN Executive Director, Tata Mustasya, in an official statement on Tuesday, 12 August, revealed that the national manufacturing sector has stagnated since the early 2000s. Meanwhile, extractive industries such as coal have become increasingly dominant.
“Whereas the manufacturing industry can play a dual role, supporting the 8 per cent economic growth target while achieving zero emissions by 2050. Here, green industrialisation is key,” Tata said.
According to him, there are two major steps that the government must take. Firstly, encouraging existing manufacturing industries to switch to clean and renewable energy to reduce emissions. The survey Powering Up: Business Perspectives on Shifting to Renewable Electricity shows that nine out of ten business leaders in Indonesia support the energy transition, especially in the electricity sector, from coal to renewable energy by 2035. The majority of respondents are even considering business and supply chain relocation if the government fails to provide renewable electricity supply.
In the 2025-2034 General Plan for Electricity Supply (RUPTL) document, the government has set the share of renewable energy generation to 61 per cent of total development in the next 10 years, up from 52 per cent in the previous RUPTL. The electric vehicle manufacturing area in West Java is also planned to be fully powered by solar power and other clean energy sources.
The second step is to build new green industries that are aligned with global economic trends, for example, in the electric vehicle and solar panel sector,s where the market is growing rapidly regionally and globally. Tata emphasised that policy design must be inclusive, with the ultimate goal of advancing people’s welfare.
“Green industry can create jobs, increase exports, and drive the national economy,” he said.
SUSTAIN believes that a comprehensive strategy is needed, ranging from fiscal and financial policies, technology transfer, an active role of state-owned enterprises, to strict environmental and social standards. Tata concluded with a warning that over-reliance on extractive industries such as coal will not lead Indonesia to sustainable prosperity and is contrary to the government’s 2050 zero emission target. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
