Green economy and low-carbon development have emerged as one of key economic development strategies in Indonesia. This strategy is meant to ensure future development not only results in high economic growth, but also secures social welfare and environmental sustainability. This strategy has also become a joint commitment of the G20 countries at the Bali Summit in November of 2022. However, Indonesia must foresee the effects of this new strategy on micro, little, and medium-sized enterprises (MSMEs) business, considering that MSMEs have limited internal resources as well as limited access to external resources to adopt the new strategy.
The January 2023 edition of the Trade and Industry Brief discusses how MSMEs can be involved in implementing the pillars of a green economy, including the energy transition, sustainable agriculture, green products, circular economy, and sustainable financing. This Trade and Industry Brief also discusses the performance of Indonesia’s trade balance, which recorded a surplus of USD3.89 billion in December 2022 (the 32nd consecutive surplus) and a surplus of USD54.46 billion throughout 2022. Information used in this policy brief is obtained from BPS-Statistics Indonesia, scientific articles, and other sources.
