GDP Repotential Circular Economy Results Up To IDR 638 Trillion In 2030

JAKARTA - The circular economy, which focuses on recycling waste, is estimated to have the potential to produce a gross domestic product (GDP) of IDR 569 trillion to IDR 638 trillion by 2030.

The Head of Sub-Directorate of Infrastructure and Services of the Directorate General of Waste Management, Waste, and Hazardous Toxic Materials (B3) of the Ministry of Environment and Forestry (KLHK) Edward Nixon Pakpahan said the circular economy also has the potential to create 4.4 million new jobs.

"The circular economy has a very bright future in Indonesia. In addition to having high economic value, the circular business with an emphasis on recycling plastic and non-plastic waste, is also of great benefit to the environment," he said, quoted from Antara, Wednesday, September 28.

As a country that has a global reputation as the number two waste producer in the world, he added, this negative stigma actually has great potential to be changed to be more positive and profitable.

By driving a circular economy that focuses on recycling waste, waste is no longer seen as a problem, but will be seen as a new sustainable economic resource.

"This big benefit is mainly from reduced waste in each business sector by 18-52 percent by 2030. The circular economic benefit of the waste recycling business has the potential to produce additional GDP of IDR 593-IDR 638 trillion from five business sectors by 2030," he said.

According to him, currently, waste managed by waste banks per year is still relatively small, meaning that there are still many economic opportunities that can be maximized. The percentage of customers in the waste bank is dominated by customers from women by 64 percent, while men are 36 percent.

Meanwhile, the growth in the number of customers in the waste bank will increase in 2020, reaching 419.204, but then it will decrease in 2021 to 377.881 due to Covid's influence.

"Nevertheless, it should be noted, the idea of MSMEs for the concrete realization of the circular economy of waste management must be accompanied by idealism, commitment, and consistency, then followed by talking about rupiah," said Nixon.

Previously, the General Chairperson of the Indonesian Waste Entrepreneurs Association (APSI) Saut Marpaung said that waste management issues require the synergy and collaboration of all parties, both from the government, MSMEs, private parties and cooperatives.

"Based on existing data, waste is increasing every year, in line with the number of public consumption," he said at the National Working Meeting (Rakernas) of the Indonesian Waste Entrepreneurs Association (APSI), in Pasuruan, East Java, Saturday (24/9).

Through the National Working Meeting with the theme "Sampah is a New Resource. The UMKM of Advanced Waste, Indonesia is Clean", said Saut, is expected to be solved in the future what kind of waste management will be, especially for waste MSMEs.

The Regent of Klungkung Bali, I Nyoman Suwirta explained that in his area a cooperative was made specifically to handle waste. So waste from the community or offices is processed by cooperatives in collaboration with non-governmental agencies such as APSI.

In addition, he added, the Klungkung Regional Government collaborated with other parties to manage waste with various innovations, such as establishing a group of Macota breeders and other innovations.