ADB will fully support Indonesia through knowledge and partnership in ADB's sovereign and private sector operations.Jakarta (ANTARA) - Asian Development Bank (ADB) president Masatsugu Asakawa has thrown his weight behind Indonesia's efforts to usher in sustainable economic growth.
"ADB will fully support Indonesia through knowledge and partnership in ADB's sovereign and private sector operations," he said at an International Climate Change Conference (ICCC) in Jakarta on Thursday.
One of the ways in which ADB will support Indonesia's push for sustainable economic growth is through financing of green energy-based power plants to help realize a low carbon economy, he informed.
ADB is cooperating with the Indonesian government in supporting the development of new and renewable energy-based power plants, in line with the plan to phase out coal-fired power plants, he said.
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"We also have prepared financing for geothermal and solar energy projects," he added.
The Manila-based bank also said it will support the plan to increase the issuance of sustainable green bonds, while encouraging state-owned electricity company PT Perusahaan Listrak Negara (PLN) to commence the issuance of such bonds soon.
"We are also planning to set up a blue economic center in Indonesian territory," Asakawa said.
He further expressed ADB's support for the Indonesian government's plan to impose a carbon tax through an amendment to the law on general provisions and taxation procedures.
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Meanwhile, Indonesian Vice Finance Minister Suahasil Nazara said Indonesia has allocated 4.1 percent of its state budget fund for climate change in each of the past five years.
The budget allocations are equal to one third of the climate change budget for achieving the target of reducing greenhouse gas emissions by 2030, he said.
"So, it is important not only to increase (funding), but also involve partnership with the private sector and other sectors to produce strong resources," he added.
Indonesia is committed to lowering greenhouse gas emissions by 29 percent through self-financing and 41 percent with international help by 2030, he said.
"We have incorporated climate change in the medium-term national development plan (RPJMN) 2020-2024," he added.
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Translator: Astrid Faidlatul H, Suharto
Editor: Fardah Assegaf
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