Bappenas Ensures Godok Rules For Financing Alternative Green Energy

JAKARTA - The Ministry of National Development Planning (PPN)/National Development Planning Agency (Bappenas) said the government is currently drafting ministerial regulations governing alternative and innovative financing for sustainable development (SDGs), including green energy.

"Currently we are drafting a Ministerial Regulation regarding alternative financing. We hope we can implement it as soon as possible," said Bappenas Environmental Directorate Coordinator Anna Amalia in the webinar The 21st Economic International Dialogue, reported by ANTARA, Wednesday, September 6.

Anna said the regulation could mobilize alternative financing from non-governmental organizations (NGO), the private sector, philanthropy, and other actors.

"This is very useful for all of us because we want a bright future, and this is the time for us to move together," he said.

He explained that green energy financing requires support from many parties. Because, according to him, the government can only finance as much as 24 to 30 percent of the total need for a green energy transition.

"We need more than IDR 3,000 trillion by 2060 to achieve Net Zero Emission (NZE) and a green economy," he said.

On the other hand, he said that currently many institutions are ready to provide funding for the green energy transition program. However, he said, funding is not easy to provide because there are several criteria that have not been met.

"We hope that through this regulation, we will be able to reduce the distance between investors and the business sector, and the government can maintain investor wishes in the green business sector," he said.

Anna also hopes that the regulation can increase cooperation between the private sector and the public which can provide joint benefits in terms of green financing.

Apart from Permen, he ensured that the government was preparing a National Long-Term Development Plan (RPJPN) 2025-2045.

"Don't worry, we have spread the green virus internally in our 20-year plan. Later it will focus on sustainability and a greener economy," he said.