Jakarta – The Ministry of National Development Planning/Bappenas, together with the Asian Development Bank (ADB), the Institute for Essential Services Reform (IESR), and the Australian Government, officially launched a white paper entitled “Realising a Sustainable Business Future through Empowering Green MSMEs” on Tuesday, September 16. This effort aims to encourage the transformation of micro, small, and medium enterprises (MSMEs) towards green business practices, marking a new milestone.
The strategic document contains analysis, roadmaps, and recommendations to strengthen the green MSME ecosystem in Indonesia, encompassing areas such as financing, regulation, and technological capacity building.
“This White Paper serves as an important guide for our policy direction. There are five key strategies that we must promote: improving human resource capacity, developing a roadmap, adopting technology and innovation, providing incentives and financing, and reforming regulations. None of this can be achieved without cross-sector collaboration,” explained Deputy Minister of National Development Planning/Deputy Head of Bappenas, Febrian Alphyanto Ruddyard.
Deputy for Community Empowerment, Population, and Employment at the National Development Planning Agency (Bappenas), Maliki, said the importance of MSMEs in addressing climate change and promoting a low-carbon economy.
“The launch of the White Paper marks a concrete step towards an inclusive green economy. The government ensures that no MSMEs are left behind in this green transition,” said Maliki.
Minister of MSMEs, Maman Abdurrahman, also welcomed this initiative. According to him, the White Paper will serve as a reference for his ministry in drafting standard guidelines for green MSME development.
Support from development partners
ADB considers the launch of the White Paper as an important milestone. “With strong public and private commitment, initiatives such as green credit, self-assessment tools, and green mentor networks can empower MSMEs to grow sustainably,” said ADB Country Director for Indonesia, Jiro Tominaga.
IESR CEO Fabby Tumiwa added that environmentally friendly practices in MSMEs—such as energy efficiency, water conservation, and waste management—not only have a positive impact on the environment, but also increase business profitability.
“However, to adopt low-emission technologies, MSMEs need access to green financing and technical assistance. Education for financial institutions is also important so that they can assess the potential of green MSMEs accurately,” said Fabby.
The Australian government supports this initiative through the Sustainable Infrastructure Assistance Program (SIAP).
“This White Paper is a strong blueprint for MSMEs to play a role in green growth and the circular economy. The Australian Government stands ready to support its implementation as part of broader bilateral cooperation with Indonesia,” said Acting Deputy Ambassador of Australia, Jonathan Gilbert.
Bappenas emphasised that the transformation of green MSMEs will be the driving force behind an inclusive economy as well as a long-term strategy.
“Green MSMEs have become part of the 2025-2045 National Medium-Term Development Plan. This transformation is not only about supporting the SDGs, but also a strategic step towards the Indonesia Emas 2045 vision,” concluded Deputy Minister Febrian. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
