Jakarta (ANTARA) - Indonesia and the Netherlands have agreed to bolster the implementation of transition finance, according to Finance Minister Sri Mulyani Indrawati.

"Transition finance is vital for many countries in the world," the minister stated as quoted from her official Instagram account @smindrawati, here on Monday

According to Indrawati, transition finance can support economic decarbonisation and strengthen the economic growth of countries that implement it.

To that end, the minister said, Indonesia continues to monitor every progress of the transition finance agenda.

Indrawati stated that the agreement resulted from a bilateral meeting with Dutch Finance Minister Sigrid Kaag on the sidelines of the 2023 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) in Washington, the United States, Saturday (April 15).

During the meeting, the two finance ministers spoke about follow-up efforts to overcome climate change, as the Netherlands assumes the Co-Chair of the Coalition of Finance Ministers for Climate Action for 2023-2025.

The Coalition is currently chaired by the Indonesian and Finnish finance ministers.

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Indrawati affirmed that collaborating with G20 countries can be part of the efforts to tackle climate change.

"Green transition issues and policies to mobilize private funding sources can contribute to the priorities of the sustainable finance agenda in India's G20 Presidency," she stated.

Before meeting with Kaag, she and Finnish Finance Minister Annika Saariko led the Coalition for Climate Action Ministerial Meeting as part of the 2023 IMF-World Bank Spring Meeting series.

The forum discussed the guideline for strengthening the finance ministries' role in encouraging climate action and transition finance.

Indrawati also introduced Indonesia's energy transition scheme and ASEAN Taxonomy Version 2 during the meeting.

The minister assessed that climate change requires urgent and solid action from all parties, including finance ministers around the world.

According to Indrawati, finance ministers play an important role in addressing climate change challenges by setting policies and making decisions that shape the economic landscape by allocating resources, investing in innovation, and preparing for climate change-related risks.

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Translator: Agatha V, Kenzu
Editor: Yuni Arisandy Sinaga
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