TEMPO.CO, Jakarta - Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the green economy is one of the government's efforts to slow down the climate crisis.

"The economy needs to adapt to the climate crisis, such as shifting the traditional economic model that relies on fossil resources and introducing more sustainable innovations,” he said as the keynote speaker at the Green Industries for Green Economy discussion in Jakarta, on Tuesday, September 26, 2023.

Luhut said Indonesia's abundant natural wealth could be utilized to support the transition to a greener economy in the face of climate change that is currently occurring.

One of these is through efforts to decarbonize the power sector by reducing coal use and building renewable energy and transmission and to decarbonize the industry such as providing alternative fuels, developing nature-based economic industries as carbon absorbers, carbon capture and storage industries, and electrifying the transportation sector.

Luhut also highlighted Indonesia’s massive economic transformation over the past decade. After the COVID-19 pandemic, the country’s economy grew strongly, driven by infrastructure development, downstream natural resources, and digitalization programs.

He assessed that downstream policies have so far proven to make a significant contribution to the Indonesian economy, both in terms of increasing export value, contributing to GDP, improving the trade balance, and developing new economic growth centers outside Java.

He added that the green industry not only reduces greenhouse gas emissions and other environmental impacts but also presents new economic opportunities and creates sustainable jobs. “By adopting environmentally friendly technologies and practices, the industry can move towards renewable energy, more efficient use of resources, and cleaner production processes,” Luhut said.

ANTARA

Editor's Choice: Trade Minister Calls for Mutual Commitment on Green Investment in ASEAN

Click here to get the latest news updates from Tempo on Google News