JAKARTADAILY.ID – The establishment of a circular economy may be a highly popular topic in Indonesia and in developed countries, but supporters of the idea may have realized that the transition towards it is a bumpy road due to many challenges.
Indonesia’s Coordinating Minister for the Economy Airlangga Hartarto spoke about the urgency for Indonesia to implement a circular economy in a seminar titled “Blue, Green, and Circular Economy: The Future Platform for Post-Pandemic Development”, which was part of the second G20 Sherpa meeting in Labuan Bajo, East Nusa Tenggara, in July 2022.
"Environmental issues from carbon pollution, sea, and land degradation, to plastic waste problems", are affirming the urgency for Indonesia to implement a more sustainable economic approach, he said, adding "Blue, Green, and Circular Economy' have great potential as well as benefits to help spur global sustainable economic development."
A panelist at the discussion, however, reminded that there are many challenges to implementing a circular economy in Indonesia.
Yose Rizal Damuri, the executive director of the Centre for Strategic and International Studies (CSIS), who is also the Co-Chair of T20 Indonesia, mentioned three challenges to implementing a circular economy in Indonesia, which are lack of understanding from the public, lack of financial support, and lack of incentives.
T20 creates task forces to structure proposals around the most critical issues, driving policy innovation for the country which holds the G20 presidency.
"In a bid to implement the circular economy in a more holistic way, the government needs to offer more incentives to the private sector, so that companies can have more resources and ability to implement the extended producer responsibility. The EPR, should not be just jargon," said Hilary Ignatius Kenneth, Chief Executive Officer at Mahkota Giovey Abadi, a plastic bottle maker that is part of a giant group focusing their business on bottle making.
A circular economy concept has actually been adopted by the government of Indonesia in its Vision Indonesia 2045, which refers to some targets for Indonesia to achieve when the country celebrates its 100 years of independence.
Circular economy roadmap for Indonesia
Suharso Monoarfa, Minister of National Planning and Development Indonesia (Bappenas) explained that "circular economy is a closed loop economy system approach in which raw materials, components, and products are used as much as possible to reduce the amount of waste material that is not reused and disposed of to landfills."
This explanation was part of his foreword in a report produced by Bappenas, in concert with the Embassy of Denmark in Jakarta and the United Nations Development Program (UNDP).