The implementation of a circular economy could potentially contribute Rp593 trillion - Rp642 trillion to the gross domestic product in five industrial sectors, National Development Planning Ministry and National Development Planning Agency (PPN/ Ministry Bappenas) said.
Circular economy, also known as "circularity", is an economic system aimed at eliminating waste and a continual use of resources. Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing, and recycling to create a closed-loop system to minimize the use of resource inputs and the creation of waste, pollution, and carbon emissions.
A circular economy can be realized by creating green jobs, improving efficiency, and making optimum use of resources. The potential income benefit is based on the results of a study on the Economic, Social and Environmental Benefits of A Circular Economy in Indonesia.
The study was conducted by the PPN Ministry/Bappenas in collaboration with the United Nations Development Programme (UNDP) for Indonesia, and supported by the government of the Danish Kingdom.
The five industrial sectors are food and beverages, textile, wholesale and retail trade focusing on plastic parts, construction, and electronics, Monoarfa informed.
The implementation of a circular economy concept in the five sectors will also create an estimated 4.4 million new jobs by 2030. The impact of a circular economy on the environment includes potential reduction in greenhouse gas emissions, which would help Indonesia achieve its emission reduction target, he pointed out.
The target could be achieved through low waste production, efficient energy use, and extending the age of resources.