"Hopefully, it can increase the business world's scope for fulfilling ESG. The more they meet ESG, the more they can get financing," said Suahasil Nazara, Deputy Minister of Finance, during the launch of Catalytic Funding Program in Jakarta.
This program was launched by the Environmental Fund Management Agency (BPDLH) in collaboration with the United Nations Development Programme (UNDP).
The BPDLH was established to manage and distribute sources of environmental funding through various instruments in several sectors, including forestry, energy and mineral resources, carbon trading, environmental services, industry, transportation, agriculture, and fisheries.
Nazara expressed hope that this program would be succesful and be able to enhance the capability of start-ups to apply the ESG principle.
Through the Catalytic Funding Program, the BPDLH granted US$100,000 to strengthen the application of ESG in four start-ups.
The four start-ups comprised two aquaculture companies, Fishlog and Delos; GreenHope that focuses on managing and recycling waste; and Cakap that offers English language courses.
"Let us just say that the four start-ups are being assessed. I hope that they can pass the assessment well with the running revolving fund and the grant given as a companion," he remarked.
After going through the capacity building program until October 2024, the four start-ups will be given funding in stages, with the amount to be determined after the program ends.
Nazara also expressed optimism that more companies in Indonesia would participate in the National Carbon Exchange through Mitigation Plans and Outcomes Programs from BPDLH and UNDP.
"I am grateful because the program is also targeting micro and small businesses," he stated.
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Translator: Sanya S, Kenzu
Editor: Anton Santoso
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