Indonesia's real gross domestic product (GDP) in 2021 was higher than the real GDP before the pandemic.
Jakarta (ANTARA) - The new and renewable energy (NRE) industry was one of the main sectors that supported Indonesia's positive economic growth in 2021, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.

"Indonesia's real gross domestic product (GDP) in 2021 was higher than the real GDP before the pandemic. Currently, we have been assessed as an upper middle-income country," he noted at the Green Economy Outlook 2022 here on Wednesday.

The green economy has become the government’s main strategy for medium- and long-term economic transformation for expediting economic recovery as well as encouraging inclusive and sustainable development, he said.

Hence, the implementation of green financing is important, he stressed.

Green financing should not only be implemented through the state budget (APBN) or the issuance of green debt securities and green sukuk, but it should also be extended to various other financial instruments, he said.

“In addition, blended financing must be encouraged, not only by the government, but also by the private sector and international donor agencies, especially the ones focusing on nature conservation,” he said.

The Environmental Fund Management Agency (BPDLH) is also expected to encourage the development of transparent carbon trading, he said.

The government has continued to strive to increase green financing cooperation with various international institutions, he noted.

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"Hence, the government has established the Indonesia Investment Authority (INA), which is expected to improve Indonesia’s long-term investment opportunities, especially for the construction of various infrastructures that support national sustainable development," the minister added.

Furthermore, the Financial Services Authority (OJK) has issued the Second Phase of Sustainable Finance Roadmap 2021–2025 to encourage the implementation of the green taxonomy, he noted.

In addition, the government launched a risk-based business licensing system on August 9, 2021, to facilitate the development of a safe, secure, sustainable, and environmentally friendly business ecosystem in Indonesia, he added.

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Translator: Agatha Victoria, Uyu Liman
Editor: Rahmad Nasution
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