Downstreaming of natural resources supports green economy: Ministry
07/12/2023 (Antara News), Jakarta - Director General of Budget of the Ministry of Finance Isa Rachmatarwata stated that downstreaming natural resources could support the realization of a green economy in Indonesia.
"The downstreaming of various commodities also supports a green economy in Indonesia, for example, CPO production, which has been developed to become an environmentally friendly fuel," Rachmatarwata stated at the Economic Practitioners and Researchers Symposium (Pareto) themed "The Downstream Industrialization of Natural Resources" in Jakarta, Thursday.
Rachmatarwata remarked that crude palm oil (CPO) commodities were being developed into environmentally friendly fuels, such as biofuel and biogas, thereby supporting efforts to make the Indonesian economy greener.
Apart from CPO, another commodity developed to support the green industry is nickel that is one of the raw materials for making electric batteries.
Currently, there is an increasing trend of electric vehicles (EV). This condition will encourage demand for EV batteries, including nickel-based ones. This will serve as an opportunity for future development of the Indonesian economy.
Some 50 companies are developing EV in Indonesia, with total investment reaching more than US$200 million, or about Rp3 trillion.
The Indonesian government has set a target of one million four-wheeled EV operating in 2035, which is equivalent to saving around 12.5 million barrels of fuel and reducing carbon dioxide (CO2) emissions by 4.6 million tons.
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Moreover, 12 million two- and three-wheeled EV are targeted to operate by 2025, or equivalent to saving 18.86 million barrels of fuel and reducing 6.9 million tons of CO2 emissions.
Earlier, President of Indonesia Joko Widodo (Jokowi) stated that Indonesia had vast potential to develop a green economy in order to reduce the impact of climate change.
"The world economy is now being transformed into a green economy, financing is now going mainly to the green industry, and energy use is also shifting to green energy because we all want to reduce the impact of climate change," Jokowi stated at the opening of the 14th Mahasabha of the Indonesian Hindu Dharma Student Union in the Auditorium, Tadulako University, Palu, Central Sulawesi, Wednesday (Aug 30).
Among Indonesia's vast potentials, the president drew attention to the geothermal potential of 24 thousand megawatts, hydropower of 95 thousand megawatts originating from 4,400 rivers throughout the country, solar energy of 169 thousand megawatts from solar panels, and wind power of 68 thousand megawatts.
On account of these myriad potentials, Jokowi is optimistic that Indonesia would attract more investment into the green economy sector.
Moreover, Indonesia is building green industrial areas, one of which is in North Kalimantan, with a total area spanning 30 thousand hectares, which will capture water energy from Kayan River in the area.