KIC Survey: Many Residents Still Unfamiliar with 'Green Economy'

Economics & Macro

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Dzulfiqar Fathur Rahman 07/06/2022 13:30 WIB

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The Katadata Insight Center (KIC), a research firm, found that only a small percentage of respondents understood terms related to the green economy.

Proportion of Respondents Who Have Never Heard of Terms Related to Green Economy (April 2022*)

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Proportion of Respondents Who Have Never Heard of Terms Related to Green Economy (April 2022*)

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A significant portion of the Indonesian population is estimated to be unfamiliar with, or have never even heard of, terms related to the green economy.

According to a survey by the Katadata Insight Center (KIC) of 3,105 respondents, they are generally unfamiliar with terms such as "green economy", "green finance", "green banking", or "sustainable finance," with percentages ranging from 24% to 43%, as shown in the graph.

Only about 20%-27% of respondents claimed to understand the meaning of these terms. Approximately 36%-48% of respondents had heard the terms but did not know their meaning.

The National Development Planning Agency (Bappenas) defines the green economy as economic activity that responsibly utilizes natural capital, prevents and reduces pollution, and creates opportunities to improve social welfare and meet sustainable development targets.

The Financial Services Authority (OJK) defines "green finance" or "sustainable finance" as comprehensive support from the financial services industry for sustainable growth that aligns economic, social, and environmental interests. For example, by considering environmental and social factors in credit disbursement.

"Green banking" is the effort to strengthen banking management capabilities related to environmental and social issues. This includes increasing the bank's portfolio in environmentally friendly project financing, such as for renewable energy and organic agriculture industries.

Despite the public's unfamiliarity with these terms, KIC found that about two-thirds of respondents have invested in companies that implement Environmental, Social, and Governance (ESG) guidelines.

This survey was conducted by KIC among 3,105 respondents spread across Indonesia. All respondents met the criteria of being over 17 years old and users of financial/banking products.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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KIC Survey: Many Residents Still Unfamiliar with 'Green Economy'

KIC Survey: Many Residents Still Unfamiliar with 'Green Economy'

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KIC Survey: Many Residents Still Unfamiliar with 'Green Economy'

KIC Survey: Many Residents Still Unfamiliar with 'Green Economy'

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