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Indonesia: Leveraging its resource advantages to pursue a gr

Date：2025-03-03 08:59 Source：未知 Editer：admin

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Indonesia is actively exploring and advancing in the field of green economy with its own resource advantages, striving to promote sustainable economic development. Indonesia has shown firm determination and proactive actions in key areas su...

Indonesia is actively exploring and advancing in the field of green economy with its own resource advantages, striving to promote sustainable economic development. Indonesia has shown firm determination and proactive actions in key areas such as developing carbon capture and storage centers, developing renewable energy, and building an electric vehicle ecosystem. However, its green economy transformation is still in its early stages, facing many challenges such as incomplete policies and regulations, and funding shortages. The future transformation space is still huge.
Green Economy: A Key Path to Leapfrog Development
Indonesia sees the green economy as an important pathway to overcome the 'middle-income trap', promote sustainable growth, and achieve the 'Golden Indonesia 2045' vision. Indonesian President Joko Widodo emphasized that the green economy has enormous potential and is an important opportunity for future development. The Director of the Presidential Office, Mordoko, also stated that Indonesia is actively transitioning towards a green economy, as evidenced by the construction of the new capital. Not only are electric vehicles promoted here to reduce carbon emissions and improve air quality, but a green economy research and development center has also been established, dedicated to creating a "green Silicon Valley" in Southeast Asia. The "Indonesia Circular Economy Roadmap and National Action Plan" and "Food Loss and Waste Management Roadmap" released in July this year provide important basis for Indonesia's green transformation and sustainable economic development.
Diversified measures: tapping into the potential of green economy
1. Enhancing carbon reduction targets and developing carbon capture capabilities: Carbon reduction is of great significance to Indonesia. According to a World Bank report, by 2060, carbon reduction could bring approximately $447.64 billion in economic benefits to Indonesia. President Joko Widodo actively promotes the potential of carbon credits, and in September 2022, Indonesia raised its emission reduction target, achieving a reduction of 123.2 million tons of carbon dioxide greenhouse gas emissions by 2023. The Carbon Capture and Storage Center will be established in May 2023, and President Joko Widodo will sign relevant presidential decrees in February 2024. The Ministry of Energy and Mineral Resources is also accelerating the formulation of regulations. Indonesia has enormous potential for carbon storage and plans to build 15 carbon capture and storage centers by 2030, which is expected to bring huge revenue.
2. Vigorously developing renewable energy: Indonesia has abundant potential for renewable energy, but the utilization rate is relatively low. At present, the proportion of new and renewable energy in the energy structure is only 13.1%, but it is planned to increase to 23% by 2025 and reach at least 70% by 2045. To achieve this goal, Indonesia plans to build a super grid and smart grid, including a cross-border grid, to gather dispersed power resources, create conditions for energy development and utilization, and prepare for electricity exports. At the same time, considering the future growth of energy demand, there are plans to develop new energy sources such as hydrogen, ethanol, and nuclear energy, such as building the first small modular reactor by 2032.
3. Building an electric vehicle ecosystem: Indonesia, with abundant key mineral resources, especially nickel reserves accounting for about 22% of the world's total, actively builds a full chain electric vehicle ecosystem. In 2019, Joko Widodo signed a presidential decree to support industrial development and set a series of goals, including becoming the world's third-largest battery producer by 2027. To accelerate green travel, multiple incentive policies have been introduced, such as canceling luxury taxes on electric vehicles, exempting import taxes, reducing value-added tax, subsidizing the purchase of electric motorcycles or retrofitting traditional motorcycles, and planning to build a large number of charging stations and upgrade household electricity capacity.
Challenges and Opportunities: The Road to Transformation is Long and arduous
Although Indonesia has made some progress in developing a green economy, it still faces many difficulties. The trading volume and user growth of carbon exchanges are slow, and people's interest is not high due to the uncertainty of carbon pricing; Legislation related to new and renewable energy is still under review. Although the production of electric vehicles has increased, their market share remains low. However, Indonesia has broad prospects for green transformation, enormous resource potential, and clear development plans, which enable it to achieve a qualitative leap in the field of green economy after overcoming existing challenges, and contribute an important force to global sustainable development.
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