Indonesia

Indonesia’s sustainability journey is underpinned by its ambitious commitments, including reducing emissions by 39-42% by 2030 and reaching net zero by 2060. Under the green economy pillar, Indonesia’s economic transformation agenda prioritizes several key areas: i) accelerating the adoption of new and renewable energy; ii) developing smart grid and energy storage systems; iii) implementing circular economy practices; iv) enhancing the fiscal and non-fiscal incentive systems to promote green products; v) developing green financing and implementing carbon pricing; and vi) applying green economy principles across all sectors.

Since its work commenced in 2018, PAGE has supported the planning and execution of the Low Carbon Development Initiative (LCDI), focusing on energy, waste management, and green industries like food and beverages and iron and steel. Their contributions include assessments, modelling updates, and strengthening the LCDI Secretariat. Since 2020, Indonesia has embraced the green economy to recover from COVID-19, and with PAGE support created a National Road Map and Action Plan. In 2022, the government launched an economic transformation agenda with six strategies, including low carbon, circular, blue economy, and energy transition. A green economy index was introduced to measure progress and demonstrate political commitment to this transition. By 2023, Indonesia’s long-term development plan for 2025-2045 incorporated green and circular economy concepts to transition from a middle-income to a high-income economy.