Growth or green? Indonesia can do both

INDONESIA has benefitted from phenomenal economic transformation over the last 50 years. During this period, the nation delivered a fiftyfold increase in gross domestic product (GDP) per capita, reduced the population under the poverty line by 84 per cent, and unlocked equitable economic opportunities as part of an increasingly dynamic national economy.

Now, Indonesia is faced with a remarkable new growth opportunity – one that aligns with ambitions to build a more sustainable world. With the right strategy, Indonesia is poised to position itself as an engine of global green growth, unlocking a US$400 billion annual green growth economic opportunity.

The truth is that Indonesia’s impressive economic expansion has put it at the sharp edge of the climate challenge. Changes in land use, fossil-fuel-heavy energy production, and growing consumption mean Indonesia is now the fourth-largest annual emitter of greenhouse gasses (GHGs), responsible for 4 per cent of global annual emissions.