"This is only eight percent of the total investment requirement," Sri Mulyani stated at the Asian Development Bank (ADB) symposium here on Thursday.
The minister remarked that Indonesia's total investment needs to support the nationally determined contribution (NDC) in reducing carbon emissions is around Rp4,002 trillion, or around US$281 billion by 2030.
Earlier, the government had increased its emission reduction commitment from 29 percent to 31.89 percent with its own efforts and from 41 percent to 43.2 percent with international assistance.
Earlier, the Indonesian government had submitted a revised commitment to reducing carbon emissions to the United Nations Climate Change Secretariat (UNFCCC).
To meet investment needs to support the NDC target, the former managing director of the World Bank invited private participation, both domestic and international to philanthropists, to contribute to supporting this commitment.
"The Indonesian government has issued a number of innovative fiscal and financing incentives to close this gap in investment needs," Sri Mulyani stated.
Incentives in the taxation sector include giving tax holidays, tax allowances, value added tax facilities, and property taxes.
The minister stated that Indonesia had also issued investment instruments related to environment-friendly investments -- Green Sukuk and Sustainable Bonds (SDG Bonds) -- both at the domestic and international levels.
She expressed optimism that the two instruments would help in achieving the goal of reducing emissions by 10.6 million tons of carbon dioxide (CO2).
The finance minister emphasized the need for emission reduction commitments to be supported by carbon trading policies and carbon taxes.
"This policy will use carbon trading and non-trading instruments, including carbon taxes, to internalize the external costs of greenhouse gas emissions," she stated.
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Translator: Dewa Ketut Sudiarta Wiguna, Katriana
Editor: Azis Kurmala
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