Government Policy Direction: Green Economy To Be A Mainstream In Realizing Sustainable Development

JAKARTA – The government through the Coordinating Minister for the Economy Airlangga Hartarto stated that the strategy to support sustainable economic growth is expected to be realized through a commitment to achieve net-zero emissions by 2060.

According to him, alternative energy or renewable energy has a fairly competitive cost and is in line with efforts to encourage stronger economic growth.

"Through this, the green economy can be expected to become the mainstream of government policies," he said in an official statement quoted on Thursday, September 22.

Airlangga added that green financing also plays an important role in supporting economic transformation in Indonesia.

He explained that the government would continue to issue modern financing instruments, such as green Sukuk.

“Alternative instruments such as blended finance are also prepared, especially financing schemes by accommodating funds from philanthropy or the private sector as well as from various multinational or planning fund management institutions such as ADB or the World Bank. The Environmental Fund Management Agency has also been established to help finance the green economy program,” he said.

Furthermore, Airlangga said that several new and renewable energy (EBT) programs were assisted by financing institutions in the form of the Development Finance Institution (DFI) and Export Credit Agency (ECA).

For information, it is estimated that Indonesia needs an investment of IDR 77,000 trillion to achieve various targets to achieve net-zero emissions by 2060.

For this reason, coordination and integration are important in carrying out a green economy transformation considering that it is not only the responsibility of the government, but also the responsibility of all stakeholders.

“Other countries are competing to accelerate the transition to a green economy, including Indonesia. In the future, the share of fossil fuels will decrease and clean energy will increase. Of course, we will encourage this to improve the energy mix," concluded Coordinating Minister Airlangga.