Around 40.6 gigawatts (GW) of electricity will be generated from green sources (later).
Jakarta (ANTARA) - Indonesia needs additional funding of about Rp200 trillion (US$13.68 billion) per year to meet its Nationally Determined Contribution (NDC) target to mitigate climate change, an official has said.

Indonesia has committed to cutting greenhouse gas emissions by 29 percent through its own efforts and by 41 percent with international support by 2030. In addition, the country is targeting to achieve net-zero emissions by 2060 or earlier.

"However, (the attempt requires) no less than Rp340 trillion (US$13.26 billion) each year. Meanwhile, we can only prepare 29–30 percent of the amount," deputy for investment planning at the Investment Ministry, Indra Darmawan, said at the ‘Green Economy Indonesia Summit 2022: The Future Economy of Indonesia’ on Thursday.

Hence, realizing the NDC target will be quite challenging, he added. In addition to being large, the green development cost must be paid in advance, while the benefits of the development program will accrue later in the future.

According to the Finance Ministry, the ideal budget for climate change mitigation according to the NDCs for the 2020–2030 period is Rp343.6 trillion (US$23.50 billion) per year.

In comparison, the average budget for climate change mitigation allocated in the state budget is around Rp102.56 trillion (US$7.01 billion) per year, or 29.9 percent of the ideal requirement.

Hence, encouraging more investment is one of the strategies that can be used to obtain additional funding, the deputy said.

The realization of green investment in Indonesia can be estimated from the number of business permits issued by the ministry.

However, Darmawan warned that the ministry will revoke the business permits of investors who are found to have polluted the environment.

The investment realization can also be assessed through the Electricity Supply Business Plan (RUPTL) of state-owned electricity provider PT PLN (Persero).

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"Until 2030, no less than a half of the established power plants will be developed to become environmentally friendly generation stations. Around 40.6 gigawatts (GW) of electricity will be generated from green sources (later)," the deputy informed.

Hence, to increase the amount of sustainable investment, the ministry has prepared 47 sustainable investment projects to be offered to investors. A pre-feasibility study has been conducted for each of them.

"Each project will be related to one of the (United Nations’) sustainable development goals (SDGs). We will continue the investment scheme, thus the projects will always be environmentally friendly," Darmawan added.

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Translator: Ade Junida, Uyu Liman
Editor: Rahmad Nasution
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