Sri Mulyani: Need 200 Billion Dollar Investment To Support Green Building In Indonesia

Minister of Finance Sri Mulyani (Photo: Doc. Antara)

Minister of Finance (Menkeu) Sri Mulyani said, Indonesia still needs investment in building buildings that are in accordance with environmentally friendly principles (green building).

According to him, the government will continue to encourage strategic efforts to support the arrival of investment in the country.

"A magnitude of 200 billion dollars is needed in the next 10 years to meet the investment needs of sustainable buildings only in Indonesia," he said at the Energy Efficiency Mortgage (EEM) Development Throughout ASEAN Countries seminar on Tuesday, August 22.

Sri Mulyani explained that even greater amounts were needed to invest in the Asia-Pacific region, which amounted to 19.8 trillion dollars.

"This is only for investment in residential buildings (hunian)," he said.

He added that the Indonesian government continues to develop options to be able to seize these opportunities and needs.

He said, the challenge that is now being faced is how to present innovative solutions.

"There needs to be efforts from countries to be able to overcome this challenge while at the same time encouraging our economic transformation," he said.

Furthermore, the state treasurer stated that if with incentives the state budget could accelerate this continuous change.

"Our fiscal instrument can be entered by providing subsidies, credit assistance to tax incentives which are catalysts in supporting growth and transformation," he said.

Citing data released by the Ministry of Finance, the investment financing target in the Housing Financing Liquidity Facility (FLPP) scheme is IDR 26.21 trillion for 229,000 housing units.

As of May 29, 2023, FLPP investment financing funds that had been disbursed amounted to Rp12 trillion.