"The concept is not only about waste management but is also about production process with reusable raw material. Hence, this will be a significant saving of natural resources," Hartarto said in a statement here on Sunday.
The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible.
This model will reduce consumption of primary natural resources and waste production.
Hartarto said the transformation toward circular economy is important for Indonesia, as it will bring positive impacts to environment as well as growth in many other sectors in future.
The circular economy, he elaborated, would increase Indonesia's Gross Economic Product (GDP) and, at the same time, create jobs for 4.4 million people.
The implementation of the concept of circular economy would also give contribution to the achievement of Indonesia's Nationally Determined Contribution (NDC).
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"We are committed to reducing green house gas emission by 29 percent in 2030. With international cooperation, it can be increased to 41 percent," he said.
The low carbon development concept has been stipulated in the 2020-2024 medium-term national development planning and the road map of Indonesia's NDC achievement in 2030.
Five priority sectors, included in the two documents, comprise sustainable energy development, integrated waste management, green industry development, sustainable land restoration, as well as inventory and rehabilitation of coastal and sea ecosystem.
Regarding to the implementation of green industry, 895 companies have received the green industry awards during 2010 to 2019.
As many as 1,707 industries received blue and gold predicates in the Program for Rating Company Performance in Environmental Management (PROPER).
The minister admitted some challenges that might hinder the economic transformation, such as access to financial as well as technology to develop the green technology.
"It would need some Rp308 trillion or some US$21.6 billion per year to invest in circular economy," he said.
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