Indonesia needs Rp3,779 trillion to tackle climate change: Minister

Indonesia needs Rp3,779 trillion to tackle climate change: Minister

Smoke rises from forest fire in Ujung Batu village, Tanah Laut District, South Kalimantan on January 8, 2021. (ANTARA PHOTOS/Bayu Pratama S/rwa)

This is an extraordinary number. But, if we want to reduce carbon dioxide even higher by up to 41 percent, then the investment requirement will reach US$479 billion
Jakarta (ANTARA) -   Indonesia will need an investment of Rp3,779 trillion instead of Rp3,461 trillion projected earlier to address climate change and reduce carbon dioxide emissions by 2030, Finance Minister Sri Mulyani Indrawati has said.

 

"It is an extraordinary high number and that's only for needs in Indonesia," she said during an online discussion on Wednesday.

 

Thus, Indonesia will need an investment of US$365 billion, with the government's contribution pegged at 26 percent, she noted.

 

"This is an extraordinary number. But, if we want to reduce carbon dioxide even higher by up to 41 percent, then the investment requirement will reach US$479 billion," she remarked.

 

Tackling climate change requires policies and frameworks involving collaboration between the government, the private sector, and the global community to meet the cost needs of the handling, according to the former managing director of the World Bank.

 

The Indonesian government is mulling several solutions and policies to tackle climate change, including policies on carbon pricing, carbon markets, and carbon taxes, Indrawati informed.

 

A budget tagging scheme has been introduced in the state budget (APBN) to encourage transparency and an established climate change budget, she said.

 

The government has also diversified Indonesia's financial instruments for climate change, she added. This has been an achievement for Indonesia and has brought it global attention, she remarked.


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