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In recent years, there has been a rising global awareness of economic practices prioritizing the sustainability of human and natural resources, known as the "green economy."This term has been refined and adopted as a slogan in various parts of the world.
Simply put, a green economy refers to an economic system aiming to improve human welfare and social equality while significantly reducing environmental risks.
The new economic approach is also strongly advocated in Indonesia, and the government has openly supported and declared its implementation.
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Coordinating Minister for Economy Affairs, Airlangga Hartarto, emphasized Indonesia’s solid fundamentals for implementing a green economy during a seminar in Jakarta in late September 2023. These fundamentals include sustained national economic growth above 5 percent for seven consecutive quarters and controlled inflation.
“This strong fundamental serves as Indonesia’s asset in promoting the green economy as a new source of sustainable economic growth in the future,” said Airlangga.
Furthermore, Airlangga said that Indonesia has strengthened its commitment to Nationally Determined Contribution (NDC) to reduce emissions from 29 percent to 31.89 percent through domestic effortsand from 41 percent to 43.2 percent with international support in 2030.
“The Enhanced NDC is aligned with the Long-Term Strategy for Low Carbon and Climate Resilience 2050 and the vision to achieve net-zero emissions by 2060,” said Airlangga.
The government also made another effort to allocate the State Budget (APBN) to prioritize projects addressing climate change and promoting eco-friendly activities.
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To promote a green economy as a new foundation of national economic growth, the government introduced carbon pricing through carbon trading and taxation based on Presidential Regulation No. 98 of 2021 on Carbon Economic Value and established the Indonesia Carbon Exchange.
It accelerates the new and renewable energy sector by issuing Luxury Goods Sales Tax Regulations for Electric Vehicles to increase the demand for electric vehicles.
That way, the automotive industry continues to thrive and contribute to the national economy while still maintaining environmental sustainability.
The government is also promoting the B35 mandatory program, which is considered more eco-friendly. The program ensures the stability of oil palm commodity prices, achieves eco-friendliness, and maintains the pace of economic growth in the plantation sector.
These are some government programs to promote a green economy for national economic growth.
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Undeniably, that achieving national economic growth based on a green economy also requires support from various parties, including stakeholders from companies that share the same purpose, such as PT Serasi Autoraya or SERA.
As part of the Astra business group, SERA is committed to running a sustainable business for that benefits the environment. SERA is a transportation and logistics company providing electric car rental services.