THE ROLE OF GREEN ECONOMY IN BUILDING SUSTAINABLE ECONOMIC GROWTH IN INDONESIA

Abstract

Massive natural resource exploitation-based economic development has triggered various environmental crises, including increased greenhouse gas emissions, deforestation, biodiversity loss, and widening social inequality. Although conventional growth models have succeeded in raising economic output, they have proven inadequate in ensuring environmental sustainability and social justice. In this context, the green economy emerges as an alternative paradigm that not only promotes economic growth but also preserves ecosystems and strengthens social inclusion. This study aims to evaluate the contribution of the green economy to sustainable economic growth in Indonesia through a systematic literature review of scientific journals published over the last decade, with a particular focus on developments over the period 2019-2023. The analysis reveals that the implementation of the green economy exerts a significant positive impact on economic growth, especially through resource use efficiency, energy cost reduction, and mitigation of environmental damage. Moreover, the green economy fosters technological innovation, enhances business competitiveness, raises public environmental awareness, and drives policy reforms that support low-carbon development.The adoption of the green economy is a strategic key to building resilience and sustainable economic growth in Indonesia, serving as a preventive measure against the negative consequences of exploitative development. Proper implementation through multi-sector collaboration will accelerate the achievement of the Sustainable Development Goals (SDGs), particularly regarding inclusive economic growth and improved social welfare.