Celios Projects Green Economy Profits For Entrepreneurs Can Reach IDR 1,517 Trillion

Rupiah illustration (photo: between)

JAKARTA - The Center of Economic and Law Studies (Celios) said that the extractive energy transition to a green economy will benefit the community, including entrepreneurs. Celios data is known to be able to answer concerns for entrepreneurs who feel the green economy is less strategic.

"If it shifts to cleaner sectors, circular economy, energy transition, (projection) profits for entrepreneurs are IDR 1,517 trillion," said Director of Celios Bhima Yudhistira at a press conference in Jakarta, quoted Wednesday, December 20.

Bhima even compared the figure to the assumption that entrepreneurs maintain an extractive economy, which includes tin, nickel, and coal. It is known, the profit from entrepreneurs is less than the application of green energy.

"We calculate that if the source is extractive and dirty, the business surplus is relatively smaller with Rp1,152 trillion," he said.

He linked the data with businessmen behind each pair of presidential and vice presidential candidates. Entrepreneurs are considered to have political rights.

"But the business orientation is to a green economy. In the banking sector, distribute it to environmentally friendly business sectors," said Bhima.

According to Bhima, Celios and Greenpeace Indonesia use input-output models to see the impact of multiples on direct investment input.

Then, they use two scenario assumptions as a comparison with a deadline of 10 years each. The first assumption is that there is political seriousness from the government in running a green economy. Including, there is a serious commitment to green funding from banks, financing institutions, as well as fiscal and monetary policies.

The second assumption is that the government continues to carry out an extractive economy or referred to as business as usual (BAU). This means that the Indonesian economy remains supported from the oil and gas sector to coal.

Furthermore, Bhima assessed that there was no reason that entrepreneurs were reluctant to switch to a green economy. This is because the projected profit is greater and is quite environmentally friendly.

"So, if entrepreneurs don't support the green economy transition, hinder the transition, and are happy with fossils, they will lose a huge economic surplus," he concluded.