"This is to finance our commitment to reducing carbon emissions in 2030," he noted during the 2022 Indonesian Financial Group (IFG) International Conference here on Monday.
Based on the Paris Agreement, Indonesia is committed to significantly reducing carbon emissions in 2030 and to achieving clean zero-carbon emissions by 2060.
For Indonesia, the commitment to achieving clean zero-carbon emissions by 2060 is the country's main priority, according to the minister.
This is because Indonesia is one of the top 10 countries, with the highest carbon emissions or contributes around two percent out of the total global emissions by 2020.
Moreover, 60 percent of the energy industry in the country is still based on non-renewable sources, such as coal-fired power plants.
To this end, a low-carbon emission environment ecosystem continues to be developed within the country and the world.
It also became the foundation for Indonesia's aspirations to become a resilient industrial country by 2035.
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"In this case, Indonesia's GDP per capita is projected to reach around US$15 thousand to US$20 thousand," Hartarto stated.
To become a resilient industrial country, substantial financing capacity is deemed necessary. Hence, overseas finance plays an important role, specifically during the transition period.
In addition, substantial domestic fund source is required to finance sustainability.
During the event, the minister also highlighted that Indonesia's total insurance asset and pension fund was still less than 20 percent of the GDP in 2020.
This figure is far from the total insurance asset and pension fund in Malaysia and Singapore that reaches 60 to 85 percent of the GDP.
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Translator: Agatha Olivia V, Fadhli Ruhman
Editor: Rahmad Nasution
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