Keeping up with the United Nations – Diandra Pratami

Indonesia’s sustainability journey is underpinned by its ambitious commitments, including reducing emissions by 39-42% by 2030 and reaching net zero by 2060. Three key trends I observe in this area are energy efficiency, sustainable financing, and forest conservation.

Firstly, energy efficiency is advancing through programs supported by PAGE, notably in industrial sectors like fertilizers and iron and steel. Cleaner production practices, such as Enhanced Oil Recovery technology, have achieved a 15% reduction in GHG emissions across four fertilizer factories, saving an estimated $47 million in production costs. Expanding these practices, particularly with Electric Arc Furnaces in steel production, could yield even greater energy savings and emissions cuts.

Second, sustainable financing mechanisms, such as SDG bonds and Green Sukuk, are proving vital. Indonesia has mobilized over $10 billion through these instruments to fund initiatives including blue and green economies.

Lastly, in forest conservation, Indonesia has achieved significant milestones. The forest, land, and other land uses (FOLU) sector has reduced emissions to just 18% of national totals, which implies that less of forests, peatlands and mangroves are being cleared.

Looking ahead, Indonesia’s growing focus on renewable energy, waste management, and green infrastructure will only reinforce these gains. The energy sector still accounts for 60% of emissions, necessitating an accelerated shift to renewables. Waste management also poses a rising threat, with contributions to CO2 emissions expected to increase without systemic recycling adoption. Addressing these challenges will be essential to sustaining progress in Indonesia’s green transition.

The Indonesia Green Economy Index has become essential for tracking the nation’s progress in sustainable economic development, offering a clear picture of achievements in energy efficiency, renewable energy, and waste management. This tool provides policymakers with critical, data-driven insights to guide effective green growth strategies, supporting Indonesia’s ambitious target to reach a 90% green economy index by 2045—a journey that could also generate over 15 million jobs.

PAGE has been a driving force in this success, delivering vital support in policy dialogues, technical guidance, and capacity-building. By embedding green economy principles across key sectors, PAGE has strengthened Indonesia’s focus on inclusive and resilient growth. This collaboration equips Indonesia with adaptable strategies, allowing policymakers to steer effectively toward the country’s sustainability goals and ensuring green economy efforts are impactful and enduring.

Adopting a circular economy in Indonesia’s priority sectors—food, retail (plastic packaging), electronics, construction, and textiles—will have substantial economic and environmental benefits. Together, these sectors constitute one-third of the nation’s GDP and employ over 43 million people. The National Action Plan for Circular Economy (2025-2045) aims to reduce greenhouse gas emissions by 126 million tonnes of CO2 and decrease waste by up to 52%, fostering sustainable growth.

PAGE is instrumental in advancing this agenda by providing technical support, facilitating policy dialogue, and sharing best practices. Through UNEP and UNDP, PAGE is assisting provinces like West Java, Central Java, and Bali, which account for 22% of GDP, to establish food waste baselines, introduce waste-to-energy solutions like Refuse Derived Fuel (RDF), and develop innovative financing. In the palm oil sector, ILO’s initiatives align with circular practices, creating green jobs and transforming roles in waste management and biogas utilization.

The strength of PAGE in Indonesia lies in its unique ability to embed sustainable development within national planning and economic policy, aligning global green economy frameworks with Indonesia’s specific needs. PAGE’s inclusive approach—bringing together government, private sector, and civil society—ensures that Indonesia’s green transition is both environmentally sound and socially inclusive.

By offering technical expertise and fostering cross-sectoral dialogue, PAGE empowers Indonesia to balance its ambitious economic goals with sustainability. This collaborative model helps develop policies that are not only practical but transformative, making PAGE an invaluable partner in Indonesia’s journey toward a resilient green economy.