ASIATODAY.ID, JAKARTA – Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati, said that currently Indonesia continues to show stable growth with the poverty rate continuing to decline.
However, Sri Mulyani is of the opinion that how to improve prosperity without destroying the earth due to issues of climate change, geopolitics and digitalization is a challenge that is currently of concern to the government.
“So, climate change is a problem. “How we can all work together, especially between generations,” said Sri Mulyani at the “Climate Change and Indonesia’s Future: An Intergenerational Dialogue” event, in Jakarta, Monday, November 27 2023.
It is said that alleviating climate problems requires a concrete financing plan. In this case, apart from funding from the central government, state spending through regional governments also plays an important role.
“We carry out various policy and motivational instruments for local government. “We use instruments such as physical Special Allocation Funds (DAK), Profit Sharing Funds (DBH) and various instruments to motivate regions to mainstream climate change,” he said.
To fulfill this, the government is developing a number of fiscal and financial instruments to deal with climate change. One of them is in the form of a green bond instrument combined with SUKUK or sharia-based bonds.
Since 2018, Indonesia has issued a total of US$5 billion in SUKUK Green Bonds globally. Meanwhile domestically, the government also introduced green retail-domestic SUKUK, the issuance of which reached IDR 21.8 trillion.
According to Sri Mulyani, these various instruments have proven successful in reducing Indonesia’s emissions.
“The launch of this instrument responsibly explains that green instruments are related to reducing emissions. A total of 5.7 million tons of Co2 in 2018, 3.2 million tons of Co2 in 2019, 1.4 million tons of Co2 in 2020, and 222,647 million tons of Co2 in 2022 “This is all not based on our own calculations, but audited by credible institutions,” he explained.
Apart from that, the government is also holding integrated funding collaborations that support infrastructure development in line with achieving Sustainable Development Goals (SDGs) in Indonesia, namely SDG Indonesia One.
Meanwhile, in other efforts, Indonesia has received financial support from a number of countries or green climate funds (GCF) to implement various energy transition projects.
Based on GCF Financial Instrument data, a total of US$ 486 million of budget has been entered in Indonesia, divided into 23% as equity, 26% as loan funds, and 35% as grant funds.
“For this reason, we will continue to work together and open up. Because a climate agenda without financing will only be an agenda, it will only be a dream. “Financing is one of the most critical elements of the climate agenda,” he stressed. (AT Network)
Check out other news and articles at Google News