Since its launch in 2015, the Sustainable Development Goals (SDGs) have become a global roadmap to address key challenges, from overcoming poverty to protecting the environment. For Indonesia, commitment to the SDGs is more than just a promise on paper; it is a real effort based on various strategic policies and programs. With 17 global goals covering social, economic, environmental, and partnership development, Indonesia continues to mobilize all sectors to achieve the SDG targets by 2030.

Over the past four years, significant progress has been made. Indonesia's ranking in achieving the SDGs jumped from 102nd place in 2019 to 75th place in 2023, according to the latest report presented by the Coordinating Minister for Economic Affairs, Airlangga Hartarto. “This is a massive jump, with 76 percent of SDGs indicators in Indonesia having been achieved,” said Airlangga during The 8th International Conference held by Universitas Airlangga on 11 September 2024.

While this achievement is encouraging, the challenge to reach the full target by 2030 is still haunting. Indonesia faces many challenges, ranging from increasing economic inequality and environmental degradation to the protection of vulnerable groups. How is Indonesia strategizing to achieve these targets? What are the significant changes that have already taken place, and what still needs to be done?

Three Economic Engines: The Driving Pillar of Sustainable Development

To accelerate the achievement of the SDGs, the Indonesian government relies on a strategy known as the “Three Economic Engines.” This strategy includes revitalizing the conventional economy, developing new economic engines, and strengthening the Pancasila economy.

The first engine is the revitalization of the conventional economy. The government continues to strengthen sectors that are already developed, such as through infrastructure development, structural reforms, and increasing the capacity of human resources (HR). Infrastructure is the main key to driving the economy. The construction of toll roads, ports, airports, and public transportation not only facilitates mobility but also opens up new economic access, especially in less developed areas. These infrastructure projects also play an important role in reducing regional disparities and creating better inter-regional connectivity.

The second engine is the development of new economic engines. The Indonesian government is focusing its attention on strategic sectors such as industrial downstreaming, digitalization, biotechnology, and energy transition. Industrial downstreaming, especially in the mining and plantation sectors, has helped add value to raw products before they are exported, improving the competitiveness of domestic products in the international market. Meanwhile, energy transition efforts towards renewable energy, such as solar, wind, and water energy, are expected to reduce dependence on fossil energy and accelerate Indonesia towards a more environmentally friendly economy.

The third engine is strengthening the Pancasila economy, which focuses on social protection and economic inclusion. The government protects the vulnerable through various programs such as the Family Hope Program (PKH) and the Basic Food Card (Kartu Sembako), which are designed to maintain the purchasing power of the poor and strengthen their economic resilience. On the other hand, the cash-for-work program that provides wage-based jobs for people in rural areas through infrastructure development is also one of the concrete efforts to empower people while strengthening the rural economy.

The social development pillar in the SDGs is very important to achieve inclusive welfare. The Indonesian government has launched various social protection programs designed to maintain the economic stability of vulnerable communities. One of the main efforts is direct cash transfer, which has proven effective in maintaining people's purchasing power amid the global crisis that often disrupts the economies of developing countries.

In addition, the People's Business Credit (KUR) program has enabled the MSME sector to expand more rapidly, creating new jobs and strengthening the local economy. MSMEs as the backbone of the Indonesian economy play an important role in improving people's welfare. KUR provides easier access to financing, encourages innovation, and strengthens entrepreneurship, especially among rural and lower-middle class communities.

On top of that, Social Forestry and Agrarian Reform programs provide vulnerable communities with access to own and manage land. This step is highly significant in addressing economic inequality, especially in rural areas that are vulnerable to poverty. With access to land, communities can utilize productive yields from the land they manage, improve their living standards, and encourage sustainable development at the grassroots level.

Building a Better Future

The Indonesian government's commitment to SDGs is manifested not only in programs and policies but also through strategic steps in financing. One of the key innovations is the issuance of Presidential Regulation No. 111 of 2022 on SDG Bond. This financial instrument is designed to finance projects that have a direct impact on critical sectors such as health, education, and telecommunications access. With more targeted and measurable financing, SDG projects are expected to be implemented faster, providing a broader positive impact on society.

The government also understands that they cannot work alone to achieve the SDGs. Partnerships with universities, educational institutions, and the private sector are one of the keys to achieving these goals. Universities, for example, play an important role in providing research and innovations that support the goals of the SDGs. Airlangga Hartarto, in a conference at the University of Airlangga, also emphasized the importance of the contribution of educational institutions in developing quality human resources, as well as creating relevant innovations for sustainable development.

When compared to the conditions a few years earlier, Indonesia's progress in achieving the SDGs has indeed been very significant. In 2019, Indonesia occupied the 102nd position in the global SDGs index. However, in 2023, this ranking rose dramatically to 75th, indicating that the programs and policies launched by the government have started to pay off.

Yet, challenges continue to arise. One of them lies in the regional gaps. While some urban areas, such as Jakarta and Java, have shown rapid progress in achieving the SDGs, remote areas still face various obstacles, such as limited access to education, health, and infrastructure. This gap poses a major challenge for the government to ensure that development is truly equitable across the country.

In addition, environmental challenges are also becoming an important focus. Despite the energy transition efforts, Indonesia is still struggling with the growing problems of deforestation, pollution, and environmental degradation. Efforts to balance economic development and environmental protection require a more comprehensive and sustainable strategy.

With the various steps that have been taken, Indonesia is on track to achieve the SDGs targets by 2030. However, the challenges require synergy from various parties, including the government, private sector, communities, and educational institutions. Indonesia's future as a sustainable and inclusive nation depends on its success in overcoming these challenges.

Indonesia's commitment to pursuing the SDGs is a reflection of a collective effort to create a better world for future generations. With support from all parties, Indonesia has a great opportunity to become a model of sustainable development in the Asian region and the world.

Translator: Aisah Amanda