The past two years have been challenging, as the pandemic has caused health, economic, and social crises around the world, including in Indonesia, World Bank Country Director for Indonesia and Timor-Leste Satu Kähkönen stated at a business forum "Indonesia Public-Private Partnership (PPP) Day" at the Expo 2020 Dubai, the United Arab Emirates, on Tuesday.
According to Kähkönen, the Indonesian government's efforts have been extraordinary, and it has successfully coordinated health resources and social assistance across the country to overcome the pandemic.
"Indonesia's economy has passed through the crisis better than other economies in the world, thanks to Indonesia's clever macroeconomic management. Now, the focus is shifting to supporting economic recovery and tackling climate change," she remarked.
Climate change is a challenge that will determine the conditions in 2030, according to Kähkönen.
Meanwhile, Indonesia aims to reduce greenhouse gas emissions by 26 percent by 2030 through its own efforts and by 41 percent if it is supported internationally. Indonesia is also striving to achieve net-zero emissions by 2060 or sooner and is preparing for a transition in the energy sector.
"It takes the efforts of everyone, the government, the private sector, the civil society, and the development partners. I am pleased to admit the government's efforts to improve institutional policies and processes to facilitate public-private partnerships and private investment," Kähkönen affirmed.
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Kähkönen noted that between 2016 and 2021, several important increases in private investment were recorded in Indonesia, with 23 approaches in the form of public-private partnerships, with the value amounting to almost US$13.25 billion.
Furthermore, Indonesia has issued the world's first green sukuk, or sharia securities under the green bonds. However, she viewed that much more still needs to be done by the Indonesian government.
According to Kähkönen, reforms are required to harmonize regulations to accelerate climate-smart development.
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Translator: Citro A, Kenzu T
Editor: Rahmad Nasution
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