Jakarta: Coordinating Economic Affairs Minister Airlangga Hartarto has stated that application of the circular economy can be immensely beneficial to the national economy, including the gross domestic product (GDP).
"The potential of the circular economy is huge. In Indonesia, implementation of the circular economy approach has the potential to generate additional GDP of Rp593-638 trillion," Hartarto stated during a seminar titled "Blue, Green, and Circular Economy: The Future Platform for Post-Pandemic Development."
The seminar was part of the second G20 Sherpa meeting hosted in Labuan Bajo, East Nusa Tenggara, on Wednesday.
Circular economy is a system that utilizes some strategies that encompass innovative designs, renewables, improving and recycling trash in the supply chain to maintaining the product component value and materials for the long-term.
These efforts would press down the consumption rate and greenhouse gas emissions.
Hartarto deemed the circular economy as being an important part of sustainable refuse and pollutant elimination in the economic system.
On the global scale, the circular economy could offer an alternative that brought benefits to the tune of US$4.5 trillion in 2030.
Apart from generating additional GDP, the circular economy could assist Indonesia in pushing down waste generation by 18-52 percent as compared to business as usual in each sector, reducing CO2 emissions by 126 million tons, as well as cutting water usage by 6.3 billion cubic meters.
The circular economy is able to create 4.4 million net jobs in 2030 along with annual hold savings worth nine percent of their funding, which were 4.9 million per year.
He pointed out that the world's economy is currently only 8.6-percent circular.
"This (means) that there were still many that need to be done," he said.
The minister also stressed the importance of applying the blue and green economy to preserve the nature.
The second Sherpa meeting was hosted in Labuan Bajo, East Nusa Tenggara, on July 10-13, 2022.
On the fourth day, Wednesday, the participants partook in a seminar on the blue, green, and circular economy following their trip to Messah Island, Komodo National Island, and Padar Island, East Nusa Tenggara, on Wednesday, July 12.
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