Expansion of industries in Indonesia are predicted to result in a 7 percent growth in the economy by 2014. Photo courtesy of Henri Ismail/flickr

JAKARTA, Indonesia (29 April, 2011)_Indonesian businesses have announced their commitment to work towards a green economy by presenting the Coordinating Minister for the Indonesian Economy with a signed declaration aimed at improving environmental policy and practice.

“A green economy has to be the solution. Our economic development must be based on sustainability which will improve well-being and social equity whilst at the same time reducing environmental risk,” said the minister, Hatta Rajasa.

Signed by leading businesses and economists, the declaration pledges support in six key areas including supporting a net zero deforestation policy; reducing resource intensity by investing in energy efficient alternatives; promoting sustainable business practice; supporting programmes in the protection of forest areas; investing and promoting in sustainable urban planning and land use and supporting sustainable consumption patterns.

The declaration was presented following Rajasa’s speech at the ‘B4E – Business for the Environment’ meeting held in Jakarta. The minister spoke of the challenges facing the Indonesian economy and the need to balance ecological and environmental needs with the expansion of industries predicted to result in a 7 percent growth in the economy by 2014.

Although businesses are already looking at energy efficient alternatives, they need to do more to reduce overall carbon emissions, Rajasa urged. He called on businesses to use their expertise to incorporate environmental sustainability into the business-as-usual model by investing in low carbon industries and improving resource management.

The pledge is timely, with the Indonesian President Susilo Bambang Yudhoyono yesterday announcing the Government’s plans to work with industry in utilising over 25 million hectares of degraded land to help fuel the growing economy.