Policy Transformation: Promoting Sustainable Production and Consumption of Local Brands in Indonesia in Support of SDGs 2045

Abstract

Indonesia faces challenges in implementing sustainable consumption and production (SCP) principles, which are critical to achieving the Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 12 (Responsible Consumption and Production). Although Indonesia has formulated policies such as the 2020-2030 SCP Strategic Framework, implementation on the ground is still limited, especially in supporting the strengthening of sustainability-focused MSMEs. Sustainable MSMEs, which integrate environmentally and socially friendly practices, have great potential to support the creation of decent jobs and empower local communities. In addition, MSMEs also play a role in reducing social inequalities and accelerating the transition to a green economy. However, the main challenges faced are limited market access, lack of fiscal incentives, and difficulties in obtaining recognized sustainability certifications. Therefore, more progressive and integrated policies are needed to encourage the strengthening of local brands and sustainable MSMEs. By strengthening support for this sector, Indonesia can accelerate the achievement of SDGs 1, 8, and 12, while laying a strong foundation to realize the vision of a Golden Indonesia 2045, an advanced nation based on sustainable development.