The PAGE programme in Indonesia is supporting the Government in three areas that align with national priorities.
The first priority, led by UNEP, is reducing food loss and waste. This is crucial due to Indonesia’s large and growing population driving demand for healthy food. Annually, Indonesia generates up to 184 kgs of food loss and waste per person. The savings could potentially contribute an extra five percent to the country’s GDP. This is significant! Addressing this issue is vital not only for food security (SDG 2) but also for reducing emissions (SDG 13). It is important to realize that food loss and waste account for just over 7% of Indonesia’s GHG emissions[1].
Through the PAGE programme, UNEP and UNDP are supporting the provincial governments of West Java, Central Java and Bali – which account for 22% of the nation’s GDP – to establish a baseline for food loss and waste, introduce technical solutions for waste management such as Refused Derived Fuel (RDF) and design innovative financing strategies. The assessments suggest that food loss and waste in West Java and Central Java are below the national average with post-harvest handling and storage as the main contributors. In Bali, which is a tourist hub, the level of food loss and waste surpasses the national average [2] and is largely driven by production losses generated at the harvesting stage.
We also work with the provinces on the importance of awareness raising around this topic as consumption waste is identified as the largest contributor to the loss and waste.
The second priority is dedicated to cleaner production of industry led by UNIDO. This accounts for 23.5% of the country’s CO2 emissions[3]. For Indonesia to accelerate the green economy transition, partnering with private sector is critical to enhance resource efficiency and cleaner production. PAGE is leading on this through industrial parks with a focus on fertilizers and hard to abate sectors such as iron and steel to reduce GHGs, save energy, cut back water use and boost renewables. From four fertilizer factories where cleaner production practices have been introduced, including Enhanced Oil Recovery technology, we see a 15% reduction in GHG emissions which translates into 328,065 ton-CO2e. This has allowed companies to reduce their production costs by US$ 47 million![4] We are now expanding this work to the iron and steel sectors, by introducing technologies such as the Electric Arc Furnaces, which reduce energy consumption.
And finally, the third priority is the creation of green jobs, which is led by ILO. The commitment of the Government to reach carbon neutrality by 2050 will result in significant changes in employment as jobs in renewables, technology and environmental focused opportunities will grow. PAGE is supporting the Government to assess the potential for green jobs. At the moment, the coal industry employs 0.2% of the workforce. Through PAGE we learn that the energy transition offers the potential to create 1.3 million new green jobs in renewable energy, electric mobility, energy efficiency and resource-efficient manufacturing.
The UN also prioritizes circular economy principles in the palm oil industry led by ILO, which employs 3.3% of the workforce.[5] The emergence of green jobs is anticipated in roles such as biogas plant operators, ICT system designers for waste management, specialists in recycling used cooking oil and packaging. In short, circularity will transform existing jobs to align with circular economy practices, particularly in waste management and product utilization within plantations and mills.
[1] Ministry of National Development Planning, Low Carbon Development Indonesia, UKAID, 2021 Study Report: Food Loss and Waste in Indonesia
[2] 134 and 164 kg/capita/year, respectively
[3] IESR, 2024, Industry Decarbonization Roadmaps for Indonesia
[4] UNIDO, 2022, Identifying Resource Efficiency Opportunities in the Fertilizer Industry in Indonesia: Findings and Recommendations
[5] ILO, 2023, Circular Economy in the Food and Beverage Industry for a Green Recovery – PAGE Indonesia: In Depth Assessment of Green Jobs and Skill Needs