Tuesday, May 18, 2010

GREEN ECONOMY

BOOMING BUSINESS IN 2010
CREATIVE AND GREEN ECONOMY 2010

Projection of improving Indonesian economy in 2010, compared with that of 2009, makes lots of business sectors in brighter prospect and is expected to flourish in 2010. However, apart from that, dynamic non-sector business seemingly will thrive in the coming years, e.g. creative economy and green economy.

After shocking the world with his prophecy of the world’s future in his book “Future Shock” in 1970, ten years later Alvin Toffler again became a subject of discussion in the world when he launched a book “The Third Wave” in 1980. This book essentially depicts a transition of advanced countries from industrial age society called as a second wave towards information age society as a third wave.

Toffler pointed out three types of society based on wave concept in which each wave eliminates previous culture or civilization. The first type is agricultural society that removes hunter-gatherer society. The second wave is industrial age society. The second wave started occurring in West Europe since the onset of Industrial Revolution and subsequently it spread all over the world.

A key aspect in the second wave society is the emerging of big corporations. Toffler said the second wave society lived on basis of mass production, mass distribution, mass entertainment, weapon of mass destruction. This basis is subsequently combined into standardization, centralization, and concentration and synchronization which subsequently is incorporated into an organization known as bureaucracy.

In the meantime, the post industrial age society appears in the third wave. In this type of society massive things that previously occurred much in the second wave turns into de-massive things. In the post-industrial age society goods and services are many produced on knowledge-based. Information becomes more valuable source than material one.

Based on Toffler’s society wave concept, the capital can be grouped into several wave changes. On the first wave is agriculture age, the form of main capital is land for planting. On the second wave, is industrial age, the main capital is machinery and factory. Whereas, on the third capital is information age, the main capital is information that finally change the world economy with the characteristic of thriving service industry.

Projection Based on Wave Concept
On the basis of wave concept of the change of the type of society the projection of Indonesian economy in 2010 can be more enriched. All this time the projection of economic development at home is much focused on projection of each industrial sector in this country. As reflected in Indonesia stock exchange, at least there are 9 industrial sector in Indonesia, i.e. agriculture, mining, basic industry and chemical, miscellaneous industry, consumer goods industry, property, and real estate, infrastructure, utilities & transportation, finance, and trade. The nine sectors include in 99 subsectors of industry. In the meantime, if projection of economic growth based on supply side of Bank Indonesia, then there are nine business sectors that contribute to GDP Indonesia, i.e. agriculture, mining & Quarrying, processing industry, electricity, gas and clean water, building, trade, hotel and restaurant, transportation and communication, finance, leasing & services.

If following the concept of wave change of society type, projection of development of each business sector is much closer to the industrial age society or the second wave. In fact, non-sector business and cross-sector industry also starts to develop in the dynamic of business in Indonesia. These business activities can regarded as business activities based on creative economy and based on the concern of living environmental conservation (green economy).

Creative economy in essence is creating goods and services on the basis of intellectual property relying on expertise, talent, and creativity. So far creative industry, as evidence suggests, can contribute to national economy. Apart from contributing to GDP, it also can absorb in workforce and export drive. One of economy creative now thriving is related to utilization of information technology or generally known as digital business. Besides digital business, one of creative industry that also thrives recently is business related to entertainment business.

Other than creative industry, business work on environment conservation also grows. Green economy consists of 3 main businesses. First, business on producing goods that directly can diminish carbon emission. This product constitutes a substitute for fossil fuel, which is commonly carried out. The common terminology for this is green energy. Second is activity of industry that supports green activity. Third is green industry in environment and workers.

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