Indonesia addresses green economy financing and workforce needs

Indonesian leaders and industry executives are addressing the challenges of transitioning to a green economy, focusing on financing for small businesses and workforce development.

In Central Java, Vice Governor Taj Yasin Maimoen highlighted the difficulties faced by small and medium industries (IKM) in accessing green financing. During a focus group discussion organized by the Financial Services Authority (OJK), he noted that while green technology can reduce long-term operational costs, the high initial investment and limited collateral held by small businesses remain significant barriers. He called for innovative financing schemes tailored to the characteristics of these smaller enterprises.

Meanwhile, at a global forum in New York, Petrokimia Gresik President Director Daconi Khotob emphasized that the green industrial transition requires a parallel investment in human resources. He stated that the shift toward a low-carbon economy necessitates reskilling and upskilling workers across various sectors, including engineering, agriculture, and finance, to master new competencies such as energy efficiency, carbon management, and low-emission technologies.