Coordinating Minister for Economic Affairs Airlangga Hartarto said the large-scale development of the green economy could add 2–3% to national economic growth. According to him, the additional growth could come from increased investment and the expansion of clean energy-based economic activities in the country. 

“If we are already growing by 5.45% without massive green energy development, then if this is implemented on a massive scale, with investment coming in and being carried out domestically, 2–3% growth can be created,” Airlangga said in Jakarta on Tuesday, 29 September 2026, as quoted by Antara. 

Indonesia’s economy grew 5.45% in the first half of 2026. The government is targeting economic growth of close to 6% by the end of the year. 

Airlangga also said the development of the green economy would increase demand for workers with skills more suited to the clean energy sector. According to him, the number of workers in the sector is projected to reach 5.3 million by 2029. 

“Green energy requires different workers, workers with more advanced skills. By 2029, this sector is projected to employ 5.3 million people,” he said. 

The projection of more than 5.3 million green workers by 2029 is also included in the Indonesia Green Workforce Development Roadmap prepared by the Ministry of National Development Planning (Bappenas). Under a high economic growth scenario, the number of green workers is projected to rise from around 4 million in 2025 to more than 5.3 million in 2029. 

According to Airlangga, Indonesia has strategic resources, particularly critical minerals, that can serve as a foundation for developing the green energy industry. However, he said this potential needs to be accompanied by downstream processing so that added value from mineral processing can be captured domestically. The development of downstream industries, meanwhile, requires clean, reliable and affordable energy supplies. 

Regarding the downstream processing of critical minerals, Airlangga said significant potential remains in the electric vehicle industry. He said the sector could generate more than 60 times the added value compared with exporting raw materials. 

The development of this ecosystem, according to Airlangga, could strengthen Indonesia’s position in the global energy transition supply chain. Several countries, including members of the European Union, the United States and Canada, have expressed interest in cooperating with Indonesia in the critical minerals sector. 

The situation, he said, presents an opportunity for Indonesia to develop its critical mineral potential while strengthening its green energy industry. 

In addition to critical minerals, Airlangga said Indonesia has large reserves of silica sand. The commodity could support the development of a domestic solar panel industry. According to him, Indonesia has the potential to produce solar panels with a capacity equivalent to 111 gigawatts per year. 

However, Indonesia’s solar panel exports to the United States face tariff barriers. In September 2026, the US government imposed anti-dumping and countervailing duties on crystalline silicon solar cell products from Indonesia. The rates vary depending on the producer or exporter and, cumulatively, can exceed 100%. 

In the steel sector, particularly stainless steel, Indonesian products also face high import tariffs of 50% in the United States, the European Union and the United Kingdom. 

Despite these trade barriers, Airlangga said Indonesia could remain competitive in the global market if tariffs were applied equally to all countries. 

Airlangga also linked the development of the green economy to the growth of the digital economy. According to him, the availability of green energy is one of the prerequisites for developing digital economic infrastructure, including data centers. 

He said Indonesia’s digital economy gross merchandise value (GMV) in 2025 was approaching USD 100 billion, or more than IDR 1,600 trillion, and could continue to grow with the implementation of the Digital Economy Framework Agreement (DEFA), a digital economic cooperation agreement among ASEAN countries. 

This article is published in partnership with Katadata   

Original article here