However, emerging economies, she said, normally have a problem with this as they have limited public funds, especially in relevance with today’s context.
“Currently, economic challenges are not conventional, it requires flexibility and a large fiscal space to anticipate future shocks. There are few shocks that the fiscal authorities currently anticipate, namely the pandemic which has caused the cost of restoring public health to increase, geopolitics and inflation which has led to an increasing need for subsidies and social protection to maintain people’s purchasing power, and so on,” she said.
“At the same time, domestic resources such as tax revenues are not yet at an optimal level. Besides, it is agreed at the international forums that transition in emerging economies need to be done just and affordably. For these reasons, interventions that are highly measurable in terms of risks and costs are needed if the circular economy is to utilize public funds as catalyst,” she said.
Clock ticking
Norimasa Shimomura, UNDP Indonesia Resident Representative, made a specific comment on Circular Economy implementation in Indonesia in a joint report initiated by The Ministry of National Development Planning/National Development Planning Agency and the Embassy of Denmark in Jakarta.
“Indonesia currently stands at a critical juncture, where more resources and energy may be needed, to reinvigorate its post COVID-19 economy. As the clock ticks towards 2030, a key question remains as to how a resource-rich country like Indonesia strives to improve people’s lives, whilst at the same time reduce its carbon emissions and waste,” he said.
“Balancing energy use and resource utilization to sustain growth is indeed a tricky question that could lead to setbacks, if not handled strategically. Under the circular economy, companies and manufacturers can be successful by producing zero waste and re-use any by-products from their production,” Shimomura said.
He continued that consumers nowadays would value such products and services that offers circular economy concepts.
“Hence, with its massive potential in cost efficiency, a circular economy is a win-win model for all stakeholders in Indonesia to boost growth, address climate change and create new jobs at the same time,” he said.
There are a number of initiatives and projects to that can showcase that implementation of circular economy in Indonesia have the economic, environmental and social impacts.
Answering the benefit of the doubt
A book tittled “The Future is Circular: Concrete Moves for Circular Economic Initiatives in Indonesia” presents some tangible benefits of implementing circular economy from 36 initiatives in five priority sectors: food and beverages, textiles, wholesale
and retail trade (with focus on plastic packaging), construction, and electronics.
The initiatives were implemented by the governments, the private sectors to non-government organizations. Jointly written by Bappenas, an NGO and, the Embassy of Denmark in Jakarta, the book claims implementation of circular economy from the 36 initiatives could offer economics, social and environmental benefits.