• About UGM
  • SIMASTER
  • SINTESIS
  • Public Information
  • SDGs
  • English
    • Bahasa Indonesia
    • English
Universitas Gadjah Mada Universitas Gadjah Mada
Faculty of Economics and Business
  •  About Us
    • Overview
    • History of The Establishment
    • Mission & Vission
    • School Values
    • School Leadership
    • Senate Leadership
    • Department Leadership
    • Study Program Leadership
    • Unit Leadership
    • Faculty Advisory Board
    • Annual Report
    • Campus Facilities
    • Visual Identity
    • News Room
    • The 70th Anniversary
  • Academic Programs
    • Undergraduate Program
    • Master Program
    • Doctoral Program
    • Profession Program
    • Short Academic Programs
    • Professional Programs & Certification
    • International Undergraduate Program
    • International Doctorate in Business (IDB)
    • Academic Calendar
    • Rooms and Events
  • Faculty & Research
    • School Memberships
    • School Accreditation
    • International Networks
    • Faculty Members
    • Visiting Professor & Research Fellows
    • Professional Staffs
    • Publications
    • Published Journals
    • Working Papers
    • Fields of Study
    • Supporting Units
    • International Conference Partnership
    • Call for Papers
    • Community Service
    • Faculty Library
  • Admission
  • Home
  • News

The Importance of Environmental Sustainability and Energy Transformation in Indonesia’s Economic Growth

  • News
  • 3 September 2024, 16.23
  • By : Admin
Professor Budy P Resosudarmo

Creating a circular and environmentally friendly economic development is one of the Sustainable Development Goals (SDGs) goals. According to Professor Budy P. Resosudarmo, an economics expert from the Crawford School of Public Policy at the Australian National University (ANU), economic development encompasses both economic aspects, human development, and environmental sustainability.

Budy conveyed this during the first session of a lecture series titled “Enhancing the Research Process in Environmental Economics,” organized by the Master’s and Doctoral Programs at the Faculty of Economics and Business, Gadjah Mada University (FEB UGM), on Monday (September 2) at the MD FEB UGM Auditorium.

Budy explained that human development is measured through economy, education, and health. Meanwhile, the goal of sustainable economic growth is reflected in the principles of the 2030 SDGs.

Furthermore, Budy emphasized that the resources and opportunities available today must be managed well so that future generations can enjoy them without harm or burden. “We are allowed to develop and enjoy whatever the world offers as long as our future generations can still enjoy the world as we do today. Therefore, what is emphasized in sustainable development is intergenerational equity, not equality where each generation gets the same amount,” Budy explained.

Budy also introduced the triple bottom line concept, an accounting framework that measures an activity’s social and environmental impact on a company’s financial performance. According to him, every policy and development project must fulfill this concept, which consists of economic growth, human well-being, and environmental sustainability. However, Budy noted that ecological sustainability is often easier to implement with added value.

“Most natural resources are common goods, making it difficult to assign economic value to them. Yet, sustainability requires added value and good environmental management capabilities,” he stated.

During the event, Budy also discussed environmental exploitation in Indonesia. Since the New Order era, natural resource exploitation has been the driving force behind economic growth. This allowed Foreign Direct Investment (FDI) to enter and exploit Indonesia’s natural resources. The proceeds from these foreign investments were then used to develop infrastructure within the country. During the New Order era, this economic growth strategy significantly reduced poverty rates by up to 40% in the 1970s. However, as Indonesia’s environmental quality continues to decline, this strategy is no longer effective in promoting economic growth.

“This strategy can no longer work while our resources continue to dwindle and our energy needs rise. We can no longer rely on oil and gas, and renewable energy is limited,” he explained.

Therefore, Budy sees the need for energy transformation in Indonesia. He explained that there are three aspects to energy transformation. Three aspects include increasing the intensity of renewable energy use, regional energy integration, and gradually phasing out the use of non-renewable energy. To support this energy transformation, the government plans to implement a carbon trading system by 2025, build renewable energy power plants, promote electric vehicles in Indonesia, restore mangrove forests, and implement a circular economy.

However, Budy emphasized that energy integration across the country through the development of the Nusantara Super Grid electricity network is vital. This Super Grid will maximize the potential of renewable energy, accelerate decarbonization, and ensure energy stability. Alternatively, Indonesia could connect with China’s Asia Super Grid or Australia’s Super Grid. “Indonesia is in a strategic position. Therefore, the opportunity to connect with renewable energy grids from neighboring countries (China and Australia) is significant,” he explained.

Reportage: Najwah Ariella Puteri
Editor: Kurnia Ekaptiningrum 

Sustainable Development Goals

SDG 4 SDG 7 SDG 8 SDG 9 SDG 11 SDG 17

Views: 589
Tags: SDG 11: Sustainable Cities And Communities SDG 17: Partnerships For The Goals SDG 4: Quality Education SDG 7: Affordable And Clean Energy SDG 8: Decent Work And Economic Growth SDG 9: Industry Innovation And Infrastructure

Related Posts

Apia Dewi Agustin

The Story of Apia, PMDSU Scholarship Recipient and Best Graduate of the Master of Science in Accounting FEB UGM

Graduation Friday, 25 July 2025

Do you still remember Apia Dewi Agustin? Her name once captured the public’s attention with her inspiring story. This young woman from a remote village in Magetan Regency, East Java, successfully pursued her undergraduate degree and then continued her Master’s and Doctoral studies at the Faculty of Economics and Business, Universitas Gadjah Mada (FEB UGM), free of charge, thanks to her academic achievements.

Now, Apia has once again made her alma mater proud.

Primastuti Indah Suryani

Optimizing Social Media to Boost MSME Visibility

News Friday, 25 July 2025

Building a brand and reaching consumers no longer rely solely on conventional promotions. Social media has become a primary channel for shaping a business’s image.

Field Trip GSW 2025

GSW 2025 Invites International Students to Explore Industry and Art in Yogyakarta

News Friday, 25 July 2025

The clinking sound of metal echoes through a silver craft workshop in Kotagede, Yogyakarta. Skilled hands carefully hammer sheets of silver on a steel anvil.

Andar Danova L Goeltom

Green Jobs and Green Curriculum, the Key to Indonesia’s Tourism Future

News Thursday, 24 July 2025

Significant changes are taking place in the global tourism industry. Today’s travellers, especially younger generations and international tourists, are increasingly concerned about the environmental impact of their travel activities.

Latest News

  • The Story of Apia, PMDSU Scholarship Recipient and Best Graduate of the Master of Science in Accounting FEB UGM
    July 25, 2025
  • Optimizing Social Media to Boost MSME Visibility
    July 25, 2025
  • GSW 2025 Invites International Students to Explore Industry and Art in Yogyakarta
    July 25, 2025
  • Green Jobs and Green Curriculum, the Key to Indonesia’s Tourism Future
    July 24, 2025
  • Unemployment Rate Declines, FEB UGM Lecturer Says Decent Work Remains a Challenge
    July 24, 2025

Related Article

  • The Story of Apia, PMDSU Scholarship Recipient and Best Graduate of the Master of Science in Accounting FEB UGM
    July 25, 2025
  • Optimizing Social Media to Boost MSME Visibility
    July 25, 2025
  • GSW 2025 Invites International Students to Explore Industry and Art in Yogyakarta
    July 25, 2025
  • Green Jobs and Green Curriculum, the Key to Indonesia’s Tourism Future
    July 24, 2025
  • Unemployment Rate Declines, FEB UGM Lecturer Says Decent Work Remains a Challenge
    July 24, 2025
Universitas Gadjah Mada

Universitas Gadjah Mada
Faculty of Economics and Business

Jln. Sosio Humaniora No.1, Bulaksumur, Yogyakarta, Indonesia 55281

Map & Direction
More Contact Information

Department

  • Accounting
  • Economics
  • Management

Faculty Directory

  • Public Information
  • Room Management
  • Asset Management
  • Cemetery Management

Alumni

  • Alumni Community
  • Alumni Services
  • Tracer Study
  • Jobs & Internships
  • Scholarships

Social Media

© 2025 Faculty of Economics and Business UGM

DisclaimerSite Map

💬 Need help?
1
FEB UGM Official WhatsApp
Hello 👋
Can we help you?
Open chat