Business actors are the only party capable of helping the government to develop a green economy
Jakarta (ANTARA) - Business actors can play a crucial role in helping the government make the transition to a green economy, according to the Institute for Development of Economics and Finance (Indef).



"Business actors are the only party capable of helping the government to develop a green economy," Indef researcher, Nailul Huda, said here on Monday.



The green economy transition includes the use of more environmentally-friendly energy and industry, he said. The transition has been encouraged by the global community lately as an effort to address climate change, he added.



The business world can play a huge role in the development of a green economy, he said. Therefore, the government should make maximum efforts to encourage business actors to take part in the green transition, he stressed.


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The key to maximizing the participation of the private sector in green economy development lies in the provision of incentives by the government, he explained.



According to Huda, as long as government incentives are sufficient to reduce the costs borne by business actors to shift to green economic practices, interest in the development of green industry and energy among business actors will remain high.



Moreover, investment in the green economy is still relatively expensive, he noted. For that reason, it is necessary for stakeholders to prepare regulations that can help boost the interests of business actors and motivate them to participate in the green economy, he added.


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"For countries that are ready, the incoming investment must be a clean investment. For the private sector, if there are factors that they consider profitable, they will switch," the researcher said.



Switching to green energy is one of the focuses of Indonesia's G20 Presidency, he noted.



The G20 Summit has offered an important opportunity to encourage a sustainable green energy transition and push policies for a green energy transition that is sustainable, efficient, easy, affordable, and concrete, he remarked.


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Translator: Royke Sinaga, Raka Adji
Editor: Fardah Assegaf
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