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Jakarta Post

Green transition guidelines missing in Indonesia’s economic recovery push

  • A. Muh. Ibnu Aqil
    A. Muh. Ibnu Aqil

    The Jakarta Post

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Jakarta   /   Fri, November 27, 2020   /  08:07 pm
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Hundreds of activists and students take to the streets in Jakarta in the Climate Strike movement to demand that the government take climate change mitigation more seriously.(JP/A. Muh. Ibnu Aqil)

In spite of its initial slow response to the current global crisis, the Indonesian government was quick to set up a national economic recovery (PEN) program to address any fallout from the COVID-19 pandemic. However, upon closer examination of the program, there is little to suggest there is a strong commitment by the state to direct the country toward a “greener” economic recovery. Data from Statistics Indonesia (BPS) has revealed that the Indonesian economy contracted 3.49 percent year-on-year in the third quarter of 2020, in what amounts to a slight recovery from the minus 5.32 percent growth at the half-year mark. To support businesses and encourage spending, the state issued Government Regulation (PP) No. 23/2020 on the PEN program. It proceeded to reallocate funding from other budget posts, reaching a total of Rp 695 trillion (US$49.01 billion) as of ...