Government Embraces Stakeholders Related To Acceleration Of Financing Green Housing In Indonesia

JAKARTA - The Ministry of Finance (Kemenkeu) together with the Ministry of Public Works and Public Housing (PUPR) invites all stakeholders to collaborate in realizing green housing financing in Indonesia.

Minister of Finance (Menkeu) Sri Mulyani said that her party had implemented various programs to achieve sustainability, including implementing fiscal incentives to attract investment so that they could be directed to green projects and green industries.

Other incentives provided are in the form of tax holidays and tax allowances. Indonesia is also in the process of implementing regulations to implement carbon trading which functions as an instrument aimed at reducing greenhouse gas emissions," he said on the agenda of the ASEAN Chairmanship, Development Energy Efficiency Mortgage in Jakarta, Tuesday, August 22.

According to him, this collaboration is expected to accelerate and realize green housing financing in Indonesia.

"Continuing housing is important, but the concept is not a one size fit all concept, we need to have a design specific to every country or region," he said.

Therefore, continued the Minister of Finance, to go to housing that is efficient energy, cooperation is needed in achieving energy efficiency, limiting energy consumption but still paying attention to needs.

"We are also happy to hear the launch of the program from the Ministry of PUPR for 1 million houses and retrofitting with the concept of green housing," he said.

On the same occasion, Director General of Infrastructure Financing of the Ministry of PUPR Herry Trisaputra Zuna revealed that his agency initiated the Indonesian strategic initiative Green Affordable Housing Program (IGAHP) to provide affordable houses.

"This includes the construction of new houses and renovations of houses by applying the principles of Green Building Building Buildings. (Green Building)," he said.

Similarly, the President Director of PT Sarana Multigriya Finansial (SMF) Ananta Wiyogo said the company was a joint forum for coordinating in advancing the Indonesian housing industry.

In addition, Ananta continued, SMF is encouraged to contribute jointly in creating an environmentally-based housing industry so that it can accelerate the energy transition that is currently being rolled out by the government.

"The financing of green housing is one of the innovative financial instruments that is parallel with the aim of overcoming climate change and sustainability," he said.

Ananta explained that green housing financing would increase the home ownership and renovation program by paying attention to energy efficiency standards.

"This is still new in Indonesia. Therefore, on this occasion we can listen to the experiences of our friends Europe and Japan because they have implemented this first," he explained.

To note, in 2022 the government will be recorded as developing regulations, instruments and policies to encourage the housing sector towards green principles.

This is stated in the Energy Transition Mechanism (ETM) Country Platform which is a form of main and driving coordination to encourage the transition of the energy sector.

This energy transition step is claimed to be a commitment to Indonesia's readiness to utilize financial resources in the energy sector that can provide reliable and affordable energy while remaining committed to climate change.

The government itself is targeting to reduce about 50 million tons of carbon emissions by 2030, or 160 million tons by 2040.