From Data to Strategy

Economy goes resilient, carbon emission crawl gradually

After a downturn caused by COVID-19, Indonesia’s economy rebounded significantly in 2022 with a growth rate of 5.31%. The fluctuations in the economic cycle have contributed to Indonesia’s resilience and rise . As a result, this has indirectly impacted carbon emissions. 

Figure 1: Carbon & GDP Contribution

^{Source: International Energy Agency and Statistic Bureau} 

Most people believe that a strengthening economy signals positive outcomes, such as a society with strong purchasing power and a smoothly functioning ecosystem. 

However, the graph shows a similar trendline for both carbon emissions and GDP between 2019 and 2022. This indicates that emissions and economic growth tend to move in parallel. Let’s delve into the industry breakdown. The trend of GDP and emissions within each sector shows a consistent pattern: the greater the percentage contribution to government revenue, the higher the emissions released by those industries. For instance, according to data recorded by the Statistics Bureau in 2022, the highest rates of GDP growth were achieved by the transportation (19.87%), manufacturing (4.89%), and mining and energy (4.38%) sectors.

This data is further supported by the Climate Transparency Report, which shows that these three industries have a high intensity of carbon emissions. Therefore, to stay on track with our national goals of achieving a 1.5°C limit and net-zero emissions while enhancing economic resilience, it’s crucial to accurately measure carbon emissions and analyze the relationship between revenue and environmental costs.