"We are preparing an ecosystem to reach the goal that in circular economy and linear economy, we have to provide the ecosystem from early (on)," the ministry's director of environment, Priyanto Rohmattullah, said at the Circular Talks event here on Wednesday.
He noted that so far, circular economy implementation in Indonesia has not yet been carried out in a structured manner.
He further said that the circular economy has an economic potential of Rp500 trillion (around US$30.53 billion), so it can help boost the national economy.
To this end, the ministry is currently preparing regulations so that the circular economy ecosystem can be formed.
"In the Medium-Term Development Planning (RPJMN), we have started to discuss it. Meanwhile, for the Long-Term Development Planning, it is currently being discussed with the House of Representatives (DPR)," Rohmattullah informed.
On the same occasion, chairperson of the standing committee on new renewable energy of the Indonesian Chamber of Commerce and Industry (Kadin), Jaya Wahono, said that profit is the main aspect that business players consider, therefore regulatory certainty from the government is needed.
This is because investments in a circular economy are expected to create a return on investment within a short period of time, so support from the government via regulations will be crucial and an important consideration for investors.
Furthermore, he said that one circular economy sector that is viable is turning waste into energy.
This is because there is a clear regulation on it, namely Presidential Regulation Number 35 of 2018 on accelerating the construction of installations for processing waste into electrical energy based on environmentally friendly technology.
With the presence of the regulation, business players can utilize waste to turn it into energy so that the environmental impact of waste on the environment can be reduced and investors can make profits.
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Translator: Sinta Ambarwati, Raka Adji
Editor: Azis Kurmala
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