Indonesia Remains Committed To Overcoming The Impact Of Climate Change

Illustration (Photo: Doc. Ministry of Finance)

Minister of Finance (Menkeu) Sri Mulyani Indrawati said that current climate change can have a tremendous impact on human life and the sustainability of this earth. In this case, including Indonesia also faces quite serious consequences and risks from the impact of climate change.

"Climate change is the biggest risk for mankind and also for all countries, especially for low-income countries and developing countries, the implications of climate change are even more significant and destructive," he said as reported by the official website, Thursday, July 13.

The Minister of Finance explained, according to BMKG Indonesia for almost 40 years (1981 - 2018) each year experienced an increase in temperature of around 0.03 degrees Celsius and an increase in water level rose 0.8 - 1.2cm per year.

It is stated that Indonesia has experienced and will face implications that are not easy and not cheap due to climate change. Indonesian greenhouse gas emissions also tend to increase, which every year adds 4.3 percent per year calculated since 2010.

"However, even on the one hand, climate change is said to have a devastating impact. On the other hand, Indonesia still has to continue to carry out development that causes increased energy consumption," he said.

This means, continued the Minister of Finance, there will be an increase in demand for energy because people are more advanced and prosperous, so that their energy consumption will be higher.

The prediction is how we would continue to satisfie the ever growing demand with supply energy that does not worsen greenhouse gases, which increase 4.3 percent every year. This is a challenge for all of us. (in addition to) the government, industry players and society together (need to be involved in overcoming these challenges)," he said.

The Minister of Finance also said that Indonesia's efforts to avoid the disaster consequences of climate change are of course to fulfill its interests in the country. In this case, Indonesia has conveyed its commitment to reduce carbon emissions in the form of national determined contributions (NDC). Where Indonesia contributes globally to reducing CO2 emissions with a target of reducing 29 percent to 31.89 percent with its own efforts, or the ambition to reduce global emissions by 41 percent, even up to 43.2 percent through international support.

For this reason, the Minister of Finance said that one way Indonesia meets energy needs without exacerbating or even reducing CO2 emissions is by renewable energy. However, to achieve this commitment, it requires a cost that is also not cheap or reaches IDR 4000 trillion by 2030. So in this case, the role of the private sector of society is very important.

"The state budget may even contribute only 10 percent. However, the state budget can provide benefits through various incentives," he said.

To answer these challenges, the Ministry of Finance is committed to helping develop various regulations, instruments and policies. In closing, the Minister of Finance also appealed to the public to work together to realize renewable energy development in Indonesia, which has great potential for the common interest.

"We (Ministry of Finance) will continue to work with all of you from the Indonesian renewable energy community and all stakeholders so that we can truly prepare all platforms from regulations, policies, instruments, institutions, and of course in the end it will be realized in the form of investment decisions that answer Indonesia's challenges in continuing to build its economy, build its energy sector, but at the same time continue to reduce CO2 emissions to avoid climate change disasters," he concluded.