ASIATODAY.ID, JAKARTA – The World Bank stated that the trade sector plays a role in creating a greener global economy.
According to World Bank Indonesia Country Director, Timor Leste, Satu Kahkonen, trade policy can be linked to environmental issues. In this context, this policy can create solutions that benefit all parties in order to encourage trade conditions that support the green industry.
He views that Indonesia has made progress by regulating carbon intensity in trade.
“This has been handled well since 2005,” he said in a forum held by the World Bank and the Ministry of Trade in Jakarta, quoted on Wednesday, January 24 2024.
However, Kahkonen said, in terms of competitiveness and exports of various green goods and technology, Indonesia has not yet adapted to existing demand, so this must be followed up.
The World Bank has also prepared a report for Indonesia. In the report, there are several strategic recommendations.
First, demand related to the green industry is increasing. So the World Bank wants to encourage Indonesia to fill it globally and sustainably.
“Other manufactured products in Indonesia have potential, green product diversification and Indonesia’s potential is higher than other countries,” he explained.
He added that the private sector is key in implementing this diversification potential, because higher technology and lower costs are important.
Second, regarding trade policies such as non-tariffs which are still a challenge for companies to develop their business. The World Bank estimates that various non-tariff measures could result in large costs.
Third, it is time to align Indonesia’s trade policies through green development. Also improving policies to be more pro green policies.
“This is our opportunity to reform trade policy,” he stressed.
The reforms in question could support Indonesian policies for a longer period. (AT Network)
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