Antara News·Indonesia·Sunday, November 8, 2026 at 08:21 AM UTC

Circular economy to create millions of new jobs: Minister

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Arnidhya Nur Zhafira, Cindy Frishanti Octavia

Jakarta (ANTARA) - Indonesia's Minister of Manpower Yassierli said the transition toward a circular economy opens up opportunities for creating millions of new jobs in Indonesia.

"We have heard about the circular economy for a long time. Its essence lies in eliminating waste through recycling, reusing, or intervening in the use of materials, thereby minimizing the amount of waste generated. This presents an opportunity," Yassierli said in Jakarta on Sunday.

He explained the opportunity arises as industrial models shift from a linear economic pattern, which generates waste, to a circular economy that optimizes the reuse of raw materials and products to create added value.

According to Yassierli, the potential for a circular economy in Indonesia is significant. He noted it has the potential to add 4.4 million jobs by 2030 and contribute an additional Rp638 trillion (US$35 billion) to the Gross Domestic Product (GDP).

"The potential is primarily found in the food, plastic packaging, electronics, construction, and textile sectors," he said.

Yassierli emphasized that realizing the opportunities requires collaboration between business players and experts from various disciplines, particularly in the development of material-processing technologies.

However, he cautioned the potential of a circular economy should not be viewed solely through the lens of business and job creation.

Jobs that contribute to environmental preservation must also adhere to the principles of "decent work", including to provide fair wages, social protection, and occupational health and safety.

"Green jobs must not only be environmentally friendly; they must also be decent. We must avoid building an eco-friendly ecosystem where workers lack protection and earn wages far below the minimum wage," he asserted.

He cited the example of waste sorters, who currently largely operate within the informal sector, despite the vital contribution they make to the circular economy ecosystem.

Therefore, the government is working to strengthen the recognition of the waste-sorting profession, enhance the skills of these workers so they can transform materials into value-added products, and expand their access to social security coverage.

To seize the opportunities, Yassierli emphasized the importance of preparing the workforce through upskilling and reskilling initiatives.

"We must prepare a competent workforce capable of capitalizing on the opportunities arising from these industrial shifts. Equally important, we have an obligation to protect their well-being, ensure their occupational health and safety, and provide them with social security, he said.

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