Green economy is defined by the United Nations Environment Programmed (UNEP) as a form of economic growth which has three characteristics, namely low-carbon, resource efficiency and social inclusiveness. Development of a green economy is a concept that seeks to combine welfare and equality, along with reducing environmental risks and ecological damage. The emergence of a green economy, according to Holmgren, cannot be separated from the increased focus on cross-sectoral approach and sustainable development in international circles.
In implementing the green economy, it is important to understand the multiple functions of forests in maintaining various aspects of life and livelihood. Contribution of forestry to the green economy, among others, should be done by placing forest productivity in line with conservation functions, and puts the contribution of forests to livelihoods in line with environmental services. Therefore, in order to effectively support the forestry sector, green growth. The perspective of the forest should be put in the forest broader development goals and contribute to social life. Gross Domestic Product (GDP) in 2012 grew by 6.23 percent compared to the year 2011. Growth occurred in all economic sectors, with the highest growth in the transport and communications sector is 9.98 percent and the lowest in the Mining and Quarrying sector is 1.49 percent. While, Without Oil GDP grew 6.81 percent in 2012. Magnitude of Indonesia's GDP in 2012 at current prices reached Rp8.241, 9 trillion, while at constant prices (in 2000) reached Rp2.618,1 trillion. On a quarterly basis, fourth-quarter GDP Indonesia 2012 compared to the third quarter of 2012 (q-to-q) fell by 1.45 percent, but when compared to the fourth quarter of 2011 (y-on-y) grew by 6.11 percent. Indonesia's economic growth in 2012 according to the terms of usage occurs in Component Gross Fixed Capital Formation (GFCF) of 9.81 percent, followed by Household Consumption Expenditure Components 5.28 percent, Component Exports of Goods and Services 2.01 percent, Consumption and Expenditure Components government which grew 1.25 percent. While, as a reduction of component imports grew by 6.65 percent. In 2012, GDP (current prices) is used to meet the Household Consumption Expenditure Components by 54.56 per cent, Government Consumption Expenditure Components 8.89 percent, Component of gross fixed capital formation or investment Physical Component 33.16 percent, 24.26 percent and Export Components Component Imports 25.81 percent. GDP per capita at current prices in 2012 reached Rp33, 3 million (U.S. $ 3,562.6), an increase compared to GDP per capita in 2011 reached Rp30,4 million (U.S. $ 3,498.2). 57.51 per cent of the GDP of the fourth quarter of 2012 contributed by the island of Java, with the largest being the order of three provinces: DKI Jakarta, East Java and West Java. Quantitatively, the activities in the secondary and tertiary sectors are still concentrated in Java, while the primary sector activities more played by outside Java.