The development of renewable energy potentials must be supported by a clear scenario and roadmap, including regarding funding and investment of the projects.
Jakarta (ANTARA) - Accelerating green and blue economic investment is paramount to expediting the implementation of sustainable economic development, Coordinating Minister for Economic Affairs Airlangga Hartarto noted in a statement here on Friday.

“We must also expedite the achievement of Sustainable Development Goals (SDGs) to encourage sustainable economic development,” he remarked.

Hence, the government encourages the private sector to become involved in accelerating sustainable development in accordance with Indonesia's 2022 G20 Presidency that focuses on expediting the global health architecture, digital economic transformation, and energy transition.

“The development of new and renewable energy is important for clean energy transition," the coordinating minister stated.


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Hartarto noted that currently, the government was reviewing the apt financing mechanism to realize the transition.

In addition, the government has encouraged investment for renewable energy development in various regions in Indonesia, such as for the establishment of hydro and solar power plants.

The government has also striven to introduce the carbon capture and storage technology, issue green sukuk to strengthen environmentally and socially responsible investment, as well as encourage long-term sustainable growth that is able to benefit companies and investors.

“The development of renewable energy potentials must be supported by a clear scenario and roadmap, including regarding funding and investment of the projects," Hartarto affirmed.

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Hence, he expects all stakeholders to immediately prepare better green economy infrastructure, tools, and instruments.

The government is also developing the mechanism for carbon pricing as an incentive in achieving emission reduction targets.

In addition, climate budget tagging has been implemented in management of the state budget.

Meanwhile, the implementation of carbon tax has been regulated in Presidential Regulation Number 98 of 2021 on the implementation of Carbon Pricing.

Earlier, the coordinating minister also noted that in developing the green economy sector, blended financing had to be encouraged, not only by the government but also by the private sector and international donor agencies, especially those focusing on nature conservation.

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Translator: Kuntum Riswan, Uyu Liman
Editor: Fardah Assegaf
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