Deputy Minister Of Trade Roro: Trade Must Side With The People And The Environment

JAKARTA - Deputy Minister of Trade Dyah Roro Esti Widya Putri said that in the midst of current global challenges, trade as an instrument does not only side with economic growth but must also side with the people and the environment, and emphasize sustainability.

This affirmation was conveyed by the Deputy Minister of Trade Roro when giving his opening remarks at the 'Launching of Indonesia's Sustainable Trade and Investment Report 2025: Achieving Resilience and Sustainability Amid Uncertainty' organized by the Center for Strategic and International Studies (CSIS) Indonesia together with the Decarbonization for Development Lab (DfD Lab) and the Ministry of Trade.

"In the midst of current global challenges, trade must be part of a solution. Not only to boost the economy, but also to protect the environment, guarantee the basic rights of the people such as clean air and clean water, and emphasize sustainability that meets global market standards and demand," said Roro in an official statement, Friday, June 20.

Roro added that the report launched today is an example of the importance of data-based policies and evidence (evidence-based policies), especially in the midst of global dynamics full of uncertainty.

"This report is a shared reflection of the shift that occurs in the trade and investment ecosystem, as well as how Indonesia responds by making the principle of sustainability the main foundation in development," he said.

Furthermore, Roro also emphasized the importance of energy transition and low-carbon trade as global demand for green products increases.

According to him, shifting to clean energy is not only an option, but has become a must.

"Energy transition is an important part of Indonesia's efforts towards a green economy as well as a strategic step to face the challenges of climate change and energy crises. Indonesia is determined to significantly reduce greenhouse gas (GHG) emissions through a series of policies and concrete actions as part of a global commitment to the Paris Agreement," he stressed.

Roro said that a number of key strategies carried out by Indonesia towards net zero emissions or Net Zero Emissions (NZE) include electrification and energy efficiency, increasing the use of electric vehicles, expanding the use of renewable energy, and developing carbon utilization and storage technology.

According to Roro, these various steps are closely related to trade policies because currently each country is expected to be able to prioritize a greener, environmentally friendly, and sustainable trading system in the face of global dynamics.

Based on the World Economic Forum (World Economic Forum) assessment of 120 countries related to readiness for energy transition in 2024, Indonesia's energy transition index is ranked 54th in the world.

This achievement also places Indonesia as the third-highest energy transition index in ASEAN after Vietnam and Malaysia.

On the other hand, Roro also highlighted a number of global challenges that are being faced by the world, such as geopolitical conflicts that have an impact on the global supply chain and the United States (US) tariff policy.

Also, the strengthening of protectionism based on environmental security issues is increasingly limiting market access, especially for developing countries.

However, Roeo said that the Indonesian economy in the first quarter of 2025 still recorded growth of 4.87 percent (yoy), with household consumption as the main contributor.

Roro also said that the direction of sustainable trade policy was also in line with the vision of Indonesian President Prabowo Subianto which was conveyed in his speech in the inauguration on October 20, 2024.

One of the concrete implementations of this vision is reflected in the Indonesia-Canada Comprehensive Economic Partnership Agreement (IC-CEPA).

This agreement is an important breakthrough because it contains a special commitment in the field of critical minerals. The two countries will work together to cooperate in sustainable resource management, implementing clean technology, and encouraging environmentally friendly investment.

"As well as meeting Environmental, Social, and Governance (ESG) standards, including in terms of mining closures and reducing greenhouse gas emissions," he said.