President Joko Widodo has been aggressively promoting the green economy on almost all occasions. This is not without cause. This is because the whole world has started to develop a green economy which can also have a good impact on the environment in the future. Moreover, according to Jokowi, Indonesia can get considerable benefits from the development of the green economy because Indonesia is one of the countries that has the largest tropical and mangrove forests in the world.
"Therefore, the energy transformation towards new and renewable energy must be started. Green economy, green technology and green products must be strengthened so that we can compete in the global market, "said Jokowi at the Opening of the 2021 National Development Planning Conference, at the State Palace, Jakarta, Tuesday (4/5).
The government also, said Jokowi, has prepared the green economy development by building a green industrial park or green industrial area in North Kalimantan, which will utilize hydro power from the Kayan River which will later produce green energy, as well as new and renewable energy (EBT) which will funneled into this green industrial area.
"So that green products emerge from there. This is our strength in the future, "said Jokowi.
In addition, Jokowi said Indonesia also has power in the blue economy. According to him, Indonesia is the richest country in terms of marine biodiversity. Therefore, Indonesia must be able to use these various gifts of God wisely, while maintaining the preservation of nature, but being able to carry out sustainable production and prosper the Indonesian people.
"Sustainable blue economy must be an agenda that must be prioritized in all our coastal areas," he explained.
Furthermore, Jokowi explained that Indonesia's economic growth must be inclusive, and can be an important part of solving the problem of sustainable development or sustainable development goals (SDGs). Economic growth, he said, must be an engine for equitable development and economic justice both between regions and between villages and cities, and must be able to increase the MSME class so that they can increasingly compete with products from other countries.
Indonesia's Great Potential
INDEF Economic Observer Bhima Yudistira said that with its natural resources, Indonesia actually has great potential to be able to develop this green and blue economy in the future.
"The potential exists in all of Indonesia, our green economy has large reserves of tropical forests, and fisheries are also growing rapidly. So the point is why Indonesia does not have a specific commitment there, because if it already has that commitment it means reducing sectors that are in contradiction with the green economy itself, "he told VOA.
In addition, there are several important factors why Indonesia should develop such an environmentally based economy. Bhima explained that Indonesia's largest trading partners such as the United States, then countries in Africa and Europe have started to concern and focus on sustainable development or sustainable development that is in line with efforts to reduce emissions.
Therefore, Indonesia must apply high standards in every industrial supply chain and goods to be exported, for example, how Indonesia should be able to reduce its dependence on commodities, because many commodities are extractive in nature.
"Because there is an increasing global standard. If Indonesia does not comply with global standards, it is worried that investors as well as developed countries will look for other countries to become partners, meaning that there is a loss of economic potential, if we do not apply high standards, "he explained.
In addition, he said, the government through BUMN must be able to create greater incentives for the use of new and renewable energy (EBT) such as the development of electric cars. According to him, this is one of the most important things in the effort to develop a green economy in Indonesia, because the development of electric cars can also reduce air pollution. Then in terms of banking, said Bhima, state-owned banks must start reducing the portion of financing for sectors that damage the environment, and more enter into green financing or green banking.
"So before asking other business actors, the government must provide examples, starting from the budget, the BUMN, the policy. Don't want to push an electric car, but the one that reduces the tax or PPNBM is a car that runs on fossil fuels. That is also a contradiction, "he explained.
In the future, the government needs to make a special law (UU) that regulates the green and blue economy. The law, he said, must be able to increase protection of the environment.
"Because with the Work Creation Law yesterday there were many protests and criticisms that environmental safe guard was reduced to increase investment, even though many investments nowadays are called ESG or environmental social governance. So Indonesia should start targeting quality investment policies, "he explained.
Investments in Technology
On this occasion, Jokowi also highlighted the unavoidable use of cutting-edge science and technology, especially when the world is hit by the COVID-19 pandemic. Services such as government services, education, and various businesses go from offline to online. The world, said Jokowi, is changing so fast and Indonesia must be able to face increasingly fierce competition in line with the development of this technology.
Therefore, Jokowi also wants Indonesia to become part of the technology producer itself, so that it can get the maximum benefit from this fast technological development.
“Moreover, the 5G digital connectivity will be started. Be careful not to just be users. We should not only be smart digital users, but we must be able to print smart digital specialists, print reliable technologists who are able to compete competitively, and must develop smart digital preneurs who develop entrepreneurship and create jobs in the country, "said Jokowi.
Jokowi said that almost all companies are currently engaged in technology. He gave an example, in the financial sector there have been many financial technology (fintech) companies that are able to operate their businesses very efficiently, so that the financial industry has begun to shift to companies that rely on technology and innovation.
Then in the health sector, development is also accelerating, making it possible to carry out medical examinations or consultations remotely and use artificial intelligence for diagnosis.
According to him, all these developments reflect that the world is changing very rapidly. Therefore, all parties must be responsive to the various developments in science and technology.
"Technology spending must be needed as investment spending, we underline that the benefits must be clear, especially public benefits, benefits for society and the state, but the efficiency must also be calculated, the contribution must be calculated for technological development in the country, the return on investment must be calculated so that can be sustainable, "he explained.
