Jakarta (ANTARA) - The Indonesian government still requires a budget of US$5.7 billion to support the transition to environmentally friendly energy, member of the Board of Commissioners of the Financial Services Authority (OJK) Inarno Djajadi stated.

"OJK and other ministries continue to discuss how to balance the transition process towards a green economy while maintaining growth," Djajadi noted at the Mandiri Sustainable Forum here on Thursday.

To close the energy transition budget gap and reduce the negative impacts of climate change, the OJK has taken several steps since 2015, including by publishing the 2015-2019 Sustainable Finance Roadmap.

"As a result of the phase one sustainable roadmap, we have been able to establish sustainable finance regulations, green bond regulations, and guidelines for implementing and reporting sustainable finance," Djajadi remarked.

The OJK has also published a Sustainable Finance Roadmap 2021-2025 that aims to strengthen the sustainable financial ecosystem, which is also the basis for launching a green taxonomy in 2020 and which has currently developed into a sustainable taxonomy.

In 2023, the OJK launched OJK Regulation Number 14 of 2023 concerning Carbon Trading through the Carbon Exchange, while the carbon exchange was launched on September 26, 2023.

"The carbon exchange is expected to become the center of global carbon trading because it is in line with the national strategy for financial market development," he remarked.

Domestic environmentally friendly bond issuance also continues to grow, with the market reaching more than Rp20 trillion.

In addition, 13 investment managers have currently used the Sri Kehati Index to issue mutual funds that apply environmental, sustainable and governance principles, with a total market value of Rp6 trillion.

"Despite the challenges in a sustainable economy, Indonesia has the potential to combat the negative impacts of climate change and achieve the target of zero carbon emissions," he remarked.

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Translator: Sanya Dinda Susanti, Katriana
Editor: Azis Kurmala
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