KEM Encourages Strengthening Bioeconomics As A New Model Of Growth In Indonesia's Economic Transformation

Photo: Special

JAKARTA The Earth Economy Coalition (KEM) encourages the strengthening of the national bioeconomic agenda as part of the economic transformation strategy towards the 2045 Golden Indonesia Vision.

This support was conveyed through the 2025 Indonesia Bioeconomic Workshop which was held with Bappenas, as well as inaugurating the Indonesia Bioeconomy Initiative (IBI) which was launched at the end of 2024.

Bappenas assesses that the development of bioeconomics can become a new growth motor that balances the use of biodiversity with environmental sustainability. Deputy for Food, Natural Resources, and the Bappenas Environment, Leonardo AA Teguh Sambodo, said that the increase in demand for biological products was able to make a significant contribution to economic activity.

"Every 9 percent increase in demand for biological products can increase GDP by 10 percent," he said.

Potential Food Sector And Community Empowerment

The Coordinating Ministry for Food assesses that the food sector has a great opportunity in developing bioeconomics based on local commodities. Deputy for Affordability and Food Safety, Nani Hendiarti, said that social forestry can be an important basis for strengthening commodity value chains such as coffee, honey, and food crops.

Currently, social forestry covers 1.38 million families, with 65 percent managed through agroforestry models.

However, he stressed the need for collaboration to ensure the right to community governance, assistance, as well as access to capital and market so that the bioeconomic value chain can run effectively.

Meanwhile, the Director of Forestry and Conservation of SDA Bappenas, Dadang Jainal Mutaqin, emphasized that the community is the main actor in the bioeconomic model both as a producer, an industrial partner in downstreaming, and an ecosystem guard.

Six Strategic Steps To Accelerate Bioeconomics

Cross-sector discussions facilitated by KEM resulted in six strategic recommendations to accelerate the implementation of national bioeconomics:

Strengthening local value chains and downstreaming in the area of origin to increase people's income.

Diversification of commodities as well as trials in the health, beauty, pharmaceutical and F&B sectors with the support of technology and AI.

The blended finance scheme and community-private public partnerships to expand access to financing and reduce investment risk.

The protection of local knowledge, intellectual property, and economic benefits for indigenous peoples.

Development of infrastructure and local capacity so that communities can be involved from upstream to downstream of the bioeconomic industry.

Enforcement of environmental regulations to maintain sustainability and encourage ecosystem conservation and restoration.

KEM As A Liaison For Multi-Party Collaboration

KEM sees the acceleration of bioeconomic development requires consistent cross-sectoral coordination. Various industry actors, research institutions, communities, and the government said that many obstacles can be overcome when multi-party synergies are facilitated directly.

KEM Executive Director, Fito Rahdianto, emphasized that bioeconomic development must be prepared bottom-up by utilizing learning from pilot projects, appropriate technology, and fair downstreaming schemes.

Through IBI, KEM hopes that the development of responsible bioeconomics can be realized concretely, including through appropriate policy support, planning, programs, and budgets.