The Ministry of Trade seeks to align trade policies with green economic development targets. This is done to ensure that there is no strong turbulence in the trade sector in Indonesia's green transition process. "The role of the Ministry of Trade in Indonesia's green transition in the future is very important. The policy of the Ministry of Trade must be able to facilitate export and import activities that support Indonesia's transition to a green economy," explained Head of the Trade Policy Agency (BK Perdag), Kasan in a written statement, Wednesday (12/12). /10/2022). In Gambir Trade Talk (GTT) #8 which was held in a hybrid manner at Hotel Borobudur, Jakarta, Kasan explained that his party has a role in ensuring that Indonesian business actors and consumers have access to environmentally friendly goods, services, and technology at competitive prices.
In addition, the Ministry of Trade must also roll out trade policies that are able to encourage increased trade in environmentally friendly products at home and abroad.
According to Kasan, economic transformation for Indonesia in response to carbon emission reduction targets is not easy and cannot run automatically. He said Indonesia needs large economic resources and quality resources, including mastery of technology, financial availability, and human resources. On the same occasion, Lead Economist of World Bank Indonesia and Timor Leste Habib Rab revealed that trade policies are important for Indonesia's green transition. "World Bank analysis shows trade reforms can increase Indonesia's access to important environmentally friendly goods and technologies. The increasing global demand for environmentally friendly goods also offers opportunities for Indonesia to diversify into green industry and technology," Habib explained. Meanwhile, World Bank Indonesia and Timor Leste Senior Economist on Macroeconomics, Trade and Investment, Csilla Lakatos explained that based on trade data at the company level, the number of companies involved in green goods trading activities continues to increase from year to year, especially in import activities. According to him, reforming non-tariff measures (NTM) such as import approvals, compliance with Indonesian National Standards (SNI), and label requirements can increase trade in green goods. The Head of the Center for Sustainable Production System Research and Life Cycle Assessment, Nugroho Adi Sasongko said that life cycle assessment (LCA) is a quantitative assessment related to sustainability (environmental, economic, and social) throughout the product or supply chain stages. According to him, business actors in Indonesia need to hurry to carry out LCA to reduce their carbon footprint. Institute For Essential Service Reform (IESR) Executive Director Fabby Tumiwa added that Indonesia could lose the opportunity to be part of the global supply chain if carbon dioxide (CO2) emissions are not reduced. This is because the intensity of CO2 emissions can deter investment from export-oriented industries. For information, GTT #8, which carries the theme 'The Role of Trade Policies in Indonesia's Green Transition', was organized by the Trade Policy Agency (BK Perdag) in collaboration with the World Bank. This discussion aims to build awareness and support for trade policies needed for Indonesia's green transition process.
