"Short term COVID-19 issue, it is not too short but we can handle it now. But we must not forget that we have the challenge of climate change in the medium to long term," he said at the ALUMNAS webinar in Jakarta on Thursday.
Indonesia ratified the Paris Agreement, including the Nationally Determined Contributions (NDC) commitment, in 2016, he noted.
Based on the NDC document, Indonesia is committed to reducing greenhouse gas (GHG) emissions by 29 percent through its own capabilities and 41 percent through international support by 2030, he said.
Suahasil explained that Indonesia's efforts to meet these targets include preparing a budget and tax facilities for the green economy as well as lowering taxes for electric, hybrid, and full battery cars.
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The government is also disbursing funds through several ministries and agencies, all of which are being provided, recorded, and reported through a budget tagging report, he said.
Since 2016, the Fiscal Policy Agency (BKF) of the Ministry of Finance has provided annual reports and private budget tagging, namely government spending from the state budget for green activities, he noted.
"This is not only spending but the government also supports the green economy by ensuring that the government can promote the green format," he explained.
Not only that, Indonesia has also been the first country to apply for Green Sukuk and issue Sustainable Development Goals (SDG) bonds, he pointed out.
"The SDG and Green Sukuk require us to report to investors that the money is used for green activities," he said.
Indonesia is actively involved in international activities to demonstrate its commitment to financing efforts to address climate change.
Currently, Indonesia is a part of the Coalition of Finance Ministers for Climate Action for the period 2021-2023, which comprises Ministers of Finance who encourage financing and reduce climate change, Nazara said.
Indonesia is also very active in the G20, including in discussing ways to achieve climate change targets, he added.
"We hope that all these steps will continue not only by one minister but also by multi-sector sides to participate in the international order," the minister said.
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Translator: Astrid F, Azis Kurmala
Editor: Rahmad Nasution
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