[1000 Ideas] Optimizing The Circular Economy

[1000 Ideas] Optimizing The Circular Economy

Discover how Indonesia can leverage its demographic bonus and local circular economy policies to drive sustainable development toward the 2030 SDGs.

Discover how Indonesia can leverage its demographic bonus and local circular economy policies to drive sustainable development toward the 2030 SDGs.

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The Sustainable  Development Goals  (SDGs) are now entering the Decade of Action period in 2020-2030, so it is time for all countries in the world, especially developing countries and emerging markets , to implement development strategies that are able to accommodate 3 main principles and interests, namely the environment (planet), social ( people ), and economy ( prosperity ). This is an absolute and non-negotiable thing considering that the contemporary global dynamics that occur require  shifting  or change in order to create a better world.

In line with this, Indonesia is currently undergoing an economic development transformation from one based solely on natural resource exploitation, low- to medium-capacity industries, and traditional economic sectors to one based on more sustainable natural resource utilization, advanced science and technology-based industries, and the digital or electronic economy. These three aspects are highlighted given Indonesia's status as a country on the industrial threshold, yet it possesses substantial economic capacity and significant potential. The key lies in the development and application of science and technology, accompanied by norms and principles that refer to environmental and ecosystem protection, resulting in a sustainable national economy, with a circular economy as one of its main pillars.

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Regarding the circular economy, the three poles of the global economy already have their respective policies: Europe with  its Green Deal  at the regional level, China with  its Circular Economy Promotion Law  at the national level, and the United States, which has delegated its policies to a more specific level, namely cities. Indonesia needs to pay close attention to this, as the development and implementation of  circular economy policies  must be tailored to national needs and conditions, ensuring they are holistic, efficient, and have a direct positive impact on the business sector and the wider community.

Based on current analysis, policies at the city/district level, such as those in the United States, are more appropriate because the implementation, monitoring, and evaluation processes are faster and more focused. Furthermore, the continued development of decentralization increasingly enables cities/districts to develop more progressive and solution-oriented development policy initiatives, which must adopt a multi -stakeholder approach , thus being more comprehensive and inclusive. More discretionary policy space at the city/district level will accelerate the implementation of a circular economy, which can be synergized and integrated into regional development planning.

Circular economic policies oriented towards natural resource efficiency and waste minimization are vital for accelerating Indonesia's development and require significant support from the business sector (for capital and technical implementation), non-governmental organizations/civil society (for outreach, campaigns, and public education), academics (for expertise and development of science and technology), philanthropy (for networking and social responsibility), and finally the young generation with the potential to participate in various aspects such as education, culture, entrepreneurship, and mastery of communication and information technology.

In addition to its enormous circular economic potential, Indonesia is also currently embracing the demographic bonus phenomenon, where the youth population will reach its peak in 2030, according to population pyramid statistics. Currently, one in four Indonesians is a young person (aged 15-30), of which more than 65 million of a population of approximately 270 million are young. Utilization of this demographic bonus must be integrated into the formulation and implementation of various government policies at the national, regional, and local levels so that the younger generation can develop their potential and contribute to national development. This is in line with the  global Youth  2030 policy issued by the United Nations (UN), where various UN agencies are encouraged to adopt a youth-inclusive approach in their various policies and programs worldwide, especially in the Asia Pacific region (particularly Southeast Asia and South Asia) and Africa, which are experiencing a youth population explosion.

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In relation to optimizing the circular economy and demographic bonus, the following fundamental improvements need to be made:

  • In education (Goal 4 of the SDGs), synergy between Environmental Education (PLH) and Entrepreneurial Economics at the junior and senior high school levels is essential to enable the younger generation to become more aware of the potential of a circular economy and to implement it in their local environment. Therefore, the curriculum is structured with a greater emphasis on practice than theory and prioritizes workshop learning over lectures .

  • In the area of ​​entrepreneurship (Goal 8 of the SDGs), there is a need for administrative support policies and capital injections for start-ups (both those operating directly on the ground and through the digital world) specifically engaged in professional, effective, and sustainable waste management. This support should not only come from the government but also through partnerships with the private sector (as investors or donors) to ensure greater applicability.

  • In the industrial economy (Goals 9 & 12 of the SDGs), it is necessary to review production, distribution, and consumption strategies for sectors with potential and the ability to implement a circular economy, such as textiles, food products, automotive, electronics, and tourism, to ensure resource efficiency and minimize waste. Government incentives such as tax breaks, ease of doing business, and promotional and marketing support will certainly encourage industrial sectors involved in the circular economy to be more enthusiastic, especially if supported by young and qualified human resources.

  • In the environmental sector (Goals 1, 11, and 13 of the SDGs), particularly waste management, structured mobilization of waste collectors and waste pickers is essential to empowering them as key actors in the practical foundation of a circular economy. This will undoubtedly also have an impact on reducing extreme poverty and improving the well-being of very low-income communities, particularly in urban areas.

  • In the field of development economics and foreign policy (Goal 17 SDGs), it is necessary to establish a database system and data center, both locally at the district/city level, capable of collecting and measuring various targets, indicators, and variables for implementation, monitoring, and assessment of the circular economy. Data accumulation from the district/city level will be forwarded to the national data  center for the circular economy,  where its use can be optimized to enhance Indonesia's international credibility through various official meetings and diplomatic events. In this regard, vocational high school graduates in information technology and university graduates (diploma and bachelor's degrees) can be optimized for the establishment and operation of such data  centers  .

In conclusion, considering the potential of the circular economy and its demographic dividend, optimism about making Indonesia more sustainable by 2030 is no mere dream. It requires not only  political will  but also  policy consistency  , so that sustainable development in Indonesia can serve as a global example by simultaneously synergizing with the achievement of several relevant Sustainable Development Goals.


By:  Stevie Leonard Harrison

Founder of Young Inspirator Nusantara