In sustainable finance, it does only discuss about affordability and commitment to resolving climate change issues, but also aspects of justice and equalityJakarta (ANTARA) - The Indonesian government is committed to handling crises arising from climate change to protect citizens from potential climate-related threats, Finance Minister Sri Mulyani Indrawati has affirmed.
The commitment is not merely meant to align with the rules or regulations of other countries.
"Climate change has brought some scary consequences for many of our own people. So, addressing climate change essentially means (we are) addressing our own needs of development," Indrawati said during a webinar on “Sustainable Finance: Instruments and Management for Achieving Sustainable Development in Indonesia,” on Wednesday.
Climate change can lead to weather anomalies, which can trigger natural disasters that put people at risk.
That's why the Indonesian G20 presidency has raised climate change as an important topic for discussion, including at the meetings of the G20 finance ministers and central bank governors.
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"In sustainable finance, it does only discuss about affordability and commitment to resolving climate change issues, but also aspects of justice and equality," the minister said.
Indonesia, which owns large swathes of tropical forests, will be under the spotlight for its commitment to achieving its nationally determined contributions on carbon emissions.
Indonesia is aiming to slash carbon emissions by as much as 29 percent on its own and 41 percent with global support by 2030.
To achieve this target, it needs to begin by cutting 314 million tons to 446 million tons worth of carbon dioxide from the power sector alone.
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The government also needs to promote the transition to green energy as a means to encourage the development of eco-friendly electric power.
Currently, 62 percent of the energy produced by state electricity company PLN is derived from coal, thus every unit of energy consumed would result in carbon emissions.
“Thus, the mechanisms of energy transition become important. The role of Pertamina and PLN cannot be (brushed off) in fulfilling Indonesia's commitment to resolving climate change for humanity," the minister said.
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Translator: Sanya D S, Mecca Yumna
Editor: Fardah Assegaf
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