RI At The ASEAN Forum: Sustainable Financing Is Important To Support Clean Energy Transition

JAKARTA - The Indonesian government through the Minister of Finance (Menkeu) Sri Mulyani said that sustainable finance is important in ensuring that the clean energy transition runs affordablely and fairly.

This statement was conveyed by the Minister of Finance in the Seminar on Financing Transition in ASEAN forum which was held in the middle of this week.

"Negara-negara di ASEAN termasuk Indonesia seluruh berkomitmen untuk mencapai net-zero emission," ujarnya dalam keterangan pers, Kamis, 30 Maret.

According to the Minister of Finance, with a very rich energy landscape, both from fossil energy (oil, gas, and coal) and also renewable energy (earth heat, water, wind, and solar), Indonesia's commitment continues to strengthen.

"The Indonesian government has also strengthened the NDC (NATIONally Determined Contribution) from 29 to 32.1 percent," he said.

The state treasurer added that the most risky thing about coal retirement is the need for large financing. He said that many financial institutions usually treat the transitional financing of coal as gross financing and that's why they are not willing to finance it.

In addition, the Minister of Finance discussed ASEAN Taxonomy which received transition financing from the green and amber categories. This is the first in the world and provides clarity on classification and also how to measure it.

"And more importantly this will provide certainty for the financial sector to see this project that can be considered for support," he concluded.