Green Industry Could Add Rp638 Trillion to GDP and Create 1.7 Million Jobs by 2030

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JAKARTA, Investortrust.id — Indonesia’s green industry could generate Rp638 trillion ($39.1 billion) in economic output by 2030 and create 1.7 million new jobs, according to the Institute for Essential Services Reform (IESR). But this promise depends on a massive US$285 billion (Rp4.65 quadrillion) investment to meet the country’s climate targets.

"With sufficient investment, the green industry can accelerate economic growth," said Juniko Nur Pratama, Program Manager for Industrial Decarbonization at IESR, during a media luncheon in Jakarta on Tuesday.

He noted that the funding is essential to help Indonesia achieve its Nationally Determined Contribution (NDC) by 2030. “You can see for yourself, there is a need for US$285 billion that we must mobilize if we want to achieve our NDC goals by 2030,” Juniko stated.

According to IESR’s latest data, Indonesia has currently allocated US$138.57 billion toward green industrial development—US$41.67 billion from the financial sector and US$96.90 billion from government climate-related budgets. That leaves a shortfall of US$146.43 billion, or roughly Rp2.3 quadrillion.

Juniko warned that this gap must be urgently addressed. “So far, only 49% of the needed investment has been secured. There’s still a significant financing gap that must be closed if we’re serious about meeting our decarbonization targets,” he said.

He also outlined five priority strategies for achieving an effective green industrial transition: “We need to focus on power sector decarbonization, fuel substitution, and boosting energy efficiency,” he said. “Then comes resource efficiency—especially in materials—and finally, the use of low-carbon technologies and carbon capture, utilization, and storage, or CCUS.”

If realized, the investment could help Indonesia sustain economic growth of 6.3% annually until 2045. “We’re not just talking about environmental goals—this is also a major economic opportunity,” Juniko said.