Report

Delivering Green Growth for a Prosperous Indonesia

At a Glance

Publication Date June 2015
Format pdf
Country Indonesia
Thematic Area Cross Cutting

This roadmap “Delivering Green Growth for a Prosperous Indonesia” outlines an ambitious approach to achieve transformational change over the next 35 years. It describes policies, tools, and methods designed to ensure not only rapid growth, but a green growth that is people-centered and that provides long-term prosperity to all citizens throughout the country.

Indonesia has enjoyed strong and consistent economic growth over the past 15 years. GDP has risen by around 6% per annum, fueled by access to abundant natural resources, population growth, rising living standards and expanding domestic markets. Indonesia aims to become a high-income country in 2030s. This will require continued rapid economic growth. As President Joko Widodo has pointed out, that growth needs to be people centered, so as to provide a high standard of living to all citizens, in all parts of the country.

The nature and type of future growth that Indonesia pursues will be critical in determining its long-term sustainable economic prosperity. The quality of growth is as important as its rate.

The roadmap is not a blueprint or a detailed plan. Rather, it is intended to complement and help guide the use of existing planning documents and procedures, in part by pointing to ways in which planners and policy makers can make use of green approaches, methods, and tools. The roadmap describes practical methods by which multiple outcomes—including sustained economic growth, inclusive and equitable growth, social, economic and environmental resilience, healthy and productive ecosystems, and greenhouse gas emission reduction—may be pursued simultaneously and in a balanced and integrated manner.

The roadmap is presented in four parts:

Part 1 gives an overview of Indonesia’s impressive record for economic growth in recent decades, but also shows that these positive results have come with an increasing economic, social and environmental burden that threatens to become unsustainable. An alternative way forward, that of green growth, is introduced.

Part 2 examines opportunities to move forwards green growth within and across key sectors of the economy and presents case studies of projects and initiatives already underway and which would be benefit from scaling up.

Part 3 lays out the enabling conditions needed to build a conducive investment climate to boost green growth.

Part 4 offers a preliminary vision for Indonesia’s green growth future along with a detailed suite of priority actions for achieving it over the next 35 years.