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"Dream - The term greenflation or green inflation has become a hot topic after Vice Presidential Candidate (Cawapres) Gibran Rakabuming Raka proposed a way to address greenflation to Vice Presidential Candidate Mahfud MD in the Fourth Presidential Debate 2024 last night. 'How to overcome greenflation?' he said in the Vice Presidential Debate at JCC Senayan, Jakarta, on Sunday, January 21, 2024. The moderator asked Gibran to explain the question using terms that can be understood."
What is Greenflation?
"Okay, no, wait. I didn't explain this earlier because he is a professor, greenflation is green inflation, as simple as that," added Gibran."
Mahfud MD then answered that dealing with greenflation is the same as implementing a green economy where the process of utilizing economic products is recycled and not discarded.
The meaning of "Greenflation"
Quoting Liputan6.com, green inflation is the increase in the prices of goods and services (inflation) as a consequence of the current economic transition to a more environmentally friendly or net-zero economy.
"Inflasi hijau juga mengacu pada kenaikan harga bahan mentah dan energi sebagai akibat dari transisi hijau." Translation: "Green inflation also refers to the increase in prices of raw materials and energy as a result of the green transition."
"However, not all price increases are caused by green inflation."
One example is carbon tax policy, which makes sense from an environmental perspective, but on the other hand, it causes fuel prices to rise.
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