Semarang, November 22, 2024 – Transformation towards a green economy in Central Java is an important step to create sustainable and environmentally friendly development. As a province with great potential in the agriculture, industry and renewable energy sectors, Central Java has the opportunity to become a model for green economy transformation in Indonesia. This approach not only helps reduce greenhouse gas emissions, but also creates new jobs, improves people’s quality of life, and protects the environment.
Head of the Economic Division of the Central Java Bappeda, Hermawan, explained that the green economy is an economic transformation strategy to help Indonesia get out of the middle income trap before 2045. Central Java is targeting the 2025-2045 vision as an advanced, prosperous, cultured, and sustainable national food and industrial support province.
“We focus on the transformation to a green economy through low-carbon development and the implementation of a circular economy. This policy includes renewable energy management, energy conservation, and green industry development,” said Hermawan during the Green Economy Capacity Building event organized by the Institute for Essential Services Reform (IESR) and the Central Java Provincial Bappeda on Friday (22/11).
IESR Executive Director Fabby Tumiwa explained the importance of accelerating the energy transition towards renewable energy sources to face the challenges of the triple planetary crisis which includes climate change, pollution, and biodiversity destruction. Not only that, Fabby also highlighted that climate change has caused economic losses of up to Rp22.8 trillion per year due to hydrometeorological disasters, including in Central Java.
“The climate crisis has a major impact on the economy, such as crop failures and increased food import costs. We need to accelerate the transition to renewable energy and strengthen the circular economy at the local level,” Fabby said.
Reflecting on these conditions, Fabby recommends strengthening green economy principles in Central Java’s development through climate, social and economic adaptation and mitigation approaches. Climate adaptation includes water and soil conservation, weather monitoring technology, pest management, and climate-resilient infrastructure. Climate mitigation focuses on chemical fertilizer control, biomethane, low-carbon transportation, renewable energy use, and green industrial areas. Socially, community empowerment, CSR programs, EPR, and transparency need to be strengthened. Economically, innovation, access to finance, human resource development, and micro, small and medium enterprise (MSME) partnerships need to be prioritized. This approach is expected to realize sustainable development that supports the regional vision.
Meanwhile, Anna Amalia, Associate Planner at the Directorate of Environment of BAPPENAS, said that green economy transformation will be the main pillar in the National Long-Term Development Plan (RPJPN) 2025-2045. Indonesia targets an economic growth of 6-7 percent per year supported by low-carbon development, green labor, as well as environmentally friendly infrastructure development.
Anna also highlighted the Green Economy Index, which measures the progress of this transformation. In 2023, Indonesia recorded a score of 59.74 with progress in several indicators, while Central Java recorded a score of 52.17, categorized as good, but still facing challenges in the environmental pillar due to low land cover and the share of renewable energy.