World Bank (WB) Group managing director Sri Mulyani Indrawati has said the development of an environment-based green economy would push economic growth that was more sustainable and inclusive in tackling gaps.
“Striving for green infrastructure today can give us benefits in the next several decades. Even developing countries can soon achieve ‘green’ growth,” she said as quoted by Antara news agency during the opening of the Indonesia Green Infrastructure Summit in Jakarta on Tuesday.
The former finance minister further said that economic growth achieved by sacrificing the environment would have bad impacts and, moreover, not all parties, especially poor people, could benefit from the economic achievements.
“If we continue to defend old ways, our economic growth benefits will reduce because natural resources will deplete rapidly and we will be more susceptible to climate change and health risks,” Sri Mulyani said.
Therefore, she said, Indonesia could learn from China which had adopted an environmentally friendly policy and was able to change its economic activities by putting forward innovations and products with higher added value.
Sri Mulyani said as part of efforts to realize more environmentally friendly and inclusive economic growth, Indonesia should produce clean energy and use it efficiently to reduce poverty.
“To that end, we need to maximize renewable energy plants and increase energy efficiency. Indonesia has 40 percent of the world’s geothermal potential and if it is managed well, this can help us achieving our target to double the use of renewable energy for power plants,” she said.