Deputy Chairperson Of Kadin Shinta Kamdani: Circular Economy Helps Create Benefits For The Business Sector

JAKARTA - Deputy Chairperson of Kadin, Coordinator for Maritime, Investment and Foreign Affairs, Shinta W. Kamdani, assessed that the circular economy approach can create benefits for the business sector.

According to Shinta, the circular economy is not only about managing waste and waste, but managing an efficient production process with a focus on 3R (Reduce, Recycle, Reuse) efforts that can automatically reduce the use of materials derived from nature.

"Of course, this can be a separate benefit for the business sector, such as increasing the production of recyclable goods, decreasing imports of raw materials, including imported recycled products, saving raw materials and creating new jobs," he said, quoted from Antara, Sunday 17 July.

Other benefits, continued the Head of B20, are its contribution to reducing exhaust emissions to water use, reducing the earth's burden by consuming materials and energy by maximizing natural resources repeatedly until the end of its life cycle.

Therefore, the commitment to a circular economy will directly correlate with efforts to achieve Indonesia's Nationally Determined Contribution (NDC) where Indonesia targets to reduce greenhouse gas emissions by 2030 at 29 percent.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said that the implementation of a circular economy system could bring great benefits to the Indonesian economy, including for gross domestic product or GDP.

"The potential for a circular economy is huge. In Indonesia itself, the circular approach can generate an additional total GDP of Rp.593,638 trillion," said Airlangga when opening the seminar "Blue, Green, and Circular Economy: The Future Platform for Post-Pandemic Development" in a series of events. the second G20 Sherpa meeting held in Labuan Bajo, East Nusa Tenggara, Wednesday 13 July.

A circular economy is an economic system that involves strategies such as innovative design, renewing, upgrading and recycling of waste in the supply chain in order to maintain the value of products, components, and materials for a long time.

This can then reduce the level of consumption and greenhouse gas emissions. For Indonesia, in addition to GDP, the implementation of a circular economy can also reduce waste in each sector by 18-52 percent and reduce CO2 emissions by 126 million tons, as well as water use by 6.3 billion cubic meters.

In addition, 4.4 million cumulative net jobs could also be created, along with annual household savings of almost 9 percent of their budget, which is 4.9 million per year, by 2030.

Globally, the circular economy provides an alternative that could bring economic benefits of US$4.5 trillion by 2030.