Circular economy may add 43.3 billion USD to Indonesia’s GDP hinh anh 1A resident of Sukamiskin, Bandung, West Java processes organic waste for maggot breeding at an integrated waste processing point (Photo: Antara)
Jakarta (VNA) - Transitioning to a circular economy will add between 593 trillion and 638 trillion IDR (41.2-43.3 billion USD) to Indonesia's gross domestic product (GDP) by 2030, according to the Ministry of National Development Planning (Bappenas).
During a recent webinar on the circular economy, Bappenas's Deputy of Economic Affairs Amalia Adininggar Widyasanti said that if now Indonesia can clock an average growth of 5 percent, with the transition to the circular economy, the country’s economic growth can reach 5.6-5.7 percent.
She said that the circular economy will raise Indonesia's GDP growth rate by 0.6 percent in 2030 if the transition is comprehensive and consistent.
Widyasanti emphasised that in order to implement the circular economy, innovation and technology were deemed necessary to boost production efficiency and implement low-carbon production process.
In the linear economic approach, there is no waste recycling, while the circular economy prioritises sustainable economic development by lowering waste production and conducting waste recycling, among others.
The transition to a circular economy has shown efforts to have a better and more sustainable future, the official noted.
Widyasanti added the basic change and efforts to shift from linear to a circular economy would provide vast opportunities for researchers and companies to create new income and business chances, thereby enabling sustainable growth./.