Summary For Policymakers – The Economic, Social, and Environmental Benefits Of A Circular Economy In Indonesia

Entering a decade towards the sustainable development goals and the target of reducing greenhouse gas (GHG) emissions of Paris Agreement by 2030, the Government of Indonesia is further strengthening its commitments and efforts in overcoming economic, social and environmental problems through a low carbon development and circular economy. Circular economy is a closed loop economy system approach in which raw materials, components, and products are maintained as useful and valuable as possible so as to reduce the amount of waste material that is not reused and disposed of to landfills. The Circular Economy encourages higher green economic growth compared to the business as usual (BAU) scenario by designing systems and products that require fewer resources, ensuring that the extracted raw materials are used as efficiently and maximize its lifespan. The circular economy is one of the instruments that can support the achievements of the Sustainable Development Goals. The circular economy is also one of the drivers for Indonesia towards economic transformation, in particular supporting the green economy and low-carbon development strategies. Indonesia has adopted the Circular Economy concepts into its vision and development strategies.

Vision Indonesia 2045 has elaborated on the Circular Economy concepts as the policy going forward. As an initial step in implementing the circular economy concept, the Government of Indonesia in collaboration with the United Nations Development Program (UNDP) with the support of the Danish Government has established an analysis study of the environmental, economic, and social potential for the implementation of a circular economy in Indonesia in 5 (five) industrial sectors, namely food and beverages, construction, electronics, textiles, and plastics. This circular economy development study will be followed by further development stages, such as developing the National Action Plan and including the circular economy in the next National Medium Term Development Plan (RPJMN) 2025-2029.

The challenges and gaps with the current actual conditions will certainly be shared big work together. However, with comprehensive strategy development and collaboration of stakeholders, the implementation of a circular economy will be a concrete solution to the problems we face today. We also express our appreciation to Ministries/Institutions, Regional Governments, Academia, and development partners who have supported the preparation of the study. Hopefully, this document can become a common reference and provide an overview of the Indonesian Government’s efforts in implementing a circular economy that supports low carbon development and its contribution to achieving development targets, both at the national and global levels.