JAKARTA, September 19, 2025 – The Ministry of National Development Planning (PPN/Bappenas), together with the Asian Development Bank (ADB), the Institute for Essential Services Reform (IESR), and the Government of Australia, launched the White Paper titled “Realizing a Sustainable Business Future through Green MSME Empowerment” in Jakarta on Tuesday (16/9). The document provides a situation analysis, a roadmap, and recommendations for strengthening the regulatory framework, expanding green financing, developing classification standards, and enhancing the technological capacity of MSMEs. Deputy Minister of PPN/Head of Bappenas, Febrian Alphyanto Ruddyard, emphasized that this initiative is crucial for sharpening MSME development strategies. “There are five main strategies we must promote: improving human resource capacity, creating a roadmap, adopting technology and innovation, providing incentives and financing, and regulatory reform. The success of these strategies can only be achieved through collaboration across ministries, institutions, the business world, and the community,” explained Deputy Minister Febrian.
The document was prepared in response to the significant challenges MSMEs face in adapting to global climate change and the demand for a low-carbon economy. At the same time, MSMEs have a huge opportunity to become key players in the green transition, contributing to national climate targets. This is supported by changing global consumer preferences, increasing demand for eco-friendly products, and the growth of green financing.
“The launch of the White Paper marks a significant milestone in Indonesia’s journey toward a green, inclusive, and low-carbon economy. The Government of Indonesia, through the Ministry of PPN/Bappenas, affirms its commitment to ensuring collaboration across ministries, regional governments, the private sector, and development partners so that no MSME is left behind in the green transition,” stated Maliki, Deputy for Community Empowerment, Population, and Manpower at the Ministry of PPN/Bappenas.
Meanwhile, the Minister of MSMEs, Maman Abdurrahman, received the White Paper from Bappenas and welcomed its launch, which was prepared with IESR and ADB. The White Paper will serve as a reference for the Ministry of MSMEs in developing guidelines and standards for green MSME development in Indonesia.
ADB has consistently supported its partnership with the Ministry of PPN/Bappenas in preparing the White Paper, which shows that MSMEs can be at the forefront of Indonesia’s green transition. “With strong public and private commitment, initiatives like green credit, self-assessment tools, and networks of green mentors can empower MSMEs to grow sustainably and drive inclusive development,” said Jiro Tominaga, Country Director of the Asian Development Bank in Indonesia.
Fabby Tumiwa, CEO of IESR, noted that green practices in MSMEs—such as energy efficiency, water conservation, and waste management—can boost business profitability. However, to transition to low-emission technologies like renewable energy generation, MSMEs need technical assistance, capacity building, and access to green financing, amidst challenges where the Indonesian financial system is not yet friendly to the diversity of MSMEs. “Both MSMEs and financial institutions need to improve their understanding of the green economy and a just transition so they can assess and support green MSMEs more appropriately,” said Fabby.
“I congratulate the Ministry of PPN/Bappenas and all relevant parties on their collaboration and achievements in preparing the White Paper: Realizing a Sustainable Business Future through Green MSME Empowerment. Together with ADB, the Government of Australia welcomes the opportunity to support the development of this White Paper through the Sustainable Infrastructure Assistance Program (SIAP). This White Paper is a strong strategy and blueprint for the MSME sector to play a key role in Indonesia’s green growth and circular economy. The Australian Government is ready to support the implementation of this White Paper as needed, as part of the broader bilateral relationship between the Australian and Indonesian governments in the fields of climate, energy, and green growth,” explained Jonathan Gilbert, Acting Deputy Head of Mission at the Australian Embassy.
The Ministry of PPN/Bappenas reaffirmed its commitment to strengthening the role of green MSMEs as a driver of an inclusive, resilient, and sustainable economy towards Indonesia Emas 2045. “The green transformation of MSMEs not only supports the achievement of the Sustainable Development Goals but is also part of the National Long-Term Development Plan (RPJPN) 2025–2045 as a strategic step to realize the vision of Golden Indonesia 2045,” concluded Deputy Minister Febrian.
