The future holds substantial market potential for the downstreaming and development of nature-based or bioeconomy products, projected to contribute up to 37% to the emissions reduction needed for limiting global warming to 1.5 degrees Celsius. Investments in these innovations are expected to reach USD 1.8 trillion between 2020 and 2030, with a potential net benefit of USD 7.1 trillion, as per the 2019 World Resources Institute (WRI) Report. Additionally, the OECD's 2030 Bioeconomy Report forecasts the global bioeconomy market value to range between USD 2.6 trillion and USD 5.8 trillion from 2025 to 2030. Indra Darmawan, the Macro-Economic Advisor of the Ministry of Investment/BKPM, advocates for sustainable investment portfolio development in regions promoting bioeconomy-based commodities, with investments expected to absorb approximately USD 45.4 billion. Notably, the Green Industry Priority Project for Integrated Coconut Management in Gorontalo Regency is poised for investment, valued at IDR 643 billion.
The Indonesian government has detailed plans for bioeconomy-based development, including new industries focusing on biosimilar products, vaccines, plant-based proteins, biochemical foods, herbs, and nutrition. Efforts also extend to strengthening the regulatory framework for genetic resource preservation and utilization oriented towards bioprospecting and the bioeconomy. Downstreaming and developing nature-based products require stakeholder involvement, research and innovation enhancement, community capacity building in genetic resource management, enforcement of laws against biopiracy, and cross-sectoral synergy. KEM aims to facilitate USD 200 million in investment for over 100 sustainable MSMEs connected to 100 jurisdictions in Indonesia by 2026. They've also integrated sustainable development principles into regional planning documents for 71 regencies, in partnership with APKASI. KEM, along with the LTKL ecosystem, has connected over 300 sustainable business players with potential funders, governments, and other partners. Through events like the Indonesia Business and Investment Forum on Nature-Based Innovation (IBIFNI), KEM has secured USD 22.7 million for natural-based innovation financing. Leonard Theosabatra, CEO of SMESCO Indonesia and KEM Advisory Board Member, sees substantial sustainable development potential for bioeconomic innovation, particularly in Central Sulawesi, aligning with the target to create one million entrepreneurs by 2024 through downstreaming efforts in aquaculture, agriculture, and forestry products.
