Circular economy can add nearly Rp638 trillion to GDP: Bappenas

Circular economy can add nearly Rp638 trillion to GDP: Bappenas

A resident of Sukamiskin, Bandung, West Java processes organic waste for maggot breeding at an integrated waste processing point (TPST) Simpel. ANTARA Novrian Arbi/wsj.

Jakarta (ANTARA) - Transitioning to a circular economy will add between Rp593 trillion and Rp638 trillion to Indonesia's gross domestic product (GDP) by 2030, according to the National Development Planning (Bappenas).

"It means that if now, we can clock an average growth of five percent, with the transition to circular economy, our economic growth can reach 5.6 to 5.7 percent that will accelerate the GDP growth in Indonesia," Bappenas Deputy of Economy Amalia Adininggar Widyasanti noted during a webinar on circular economy here on Friday.

Widyasanti remarked that the circular economy will raise Indonesia's GDP growth rate by 0.6 percent in 2030 if the transition is comprehensive and consistent.

Widyasanti emphasized that in order to implement the circular economy, innovation and technology were deemed necessary to boost production efficiency and implement low-carbon production process.

In the linear economic approach, there is no waste recycling, while the circular economy prioritizes sustainable economic development by lowering waste production and conducting waste recycling, among others.

"The transition to a circular economy has shown efforts to have a better and more sustainable future," she remarked.

According to Widyasanti, the basic change and efforts to shift from linear to circular economy would provide vast opportunities for researchers and companies to create new income and business chances, thereby enabling sustainable growth.

A circular economy is a methodical approach to economic development that targets to abolish waste and the constant utilization of resources. Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing, and recycling to create a closed-loop system and minimizing the use of resource inputs and the creation of waste, pollution, and carbon emissions. Related news: Circular economy can contribute Rp642 trillion to GDP: Bappenas
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