The Ministry Of Finance Has Disbursed A Budget Of IDR 569 Trillion To Overcome Climate Change

BOGOR - The Fiscal Policy Agency (BKF) of the Ministry of Finance (Kemenkeu) reported that the realization of climate change action spending from 2016 to 2022 has reached Rp569 trillion or US$37.9 billion to overcome climate change.

Head of the Center for Climate Change and Multilateral Financing Policy at the Ministry of Finance, Boby Wahyu Hernawan, said that the average expenditure for climate change action spending from 2016 to 2022 reached Rp. 81.3 trillion or US$ 5.4 billion per year or reached 3.5 percent of the state budget.

"Since 2016-2022, the average central government expenditure for climate change has been IDR 81.3 trillion per year or approximately 3.5 percent of the state budget," he said in the media gathering of the Ministry of Finance, Wednesday, May 29.

Boby added that the annual average that the government focuses on handling climate change by 3.5 percent of the state budget is quite good in dealing with climate change, although it has not taken too much side with climate change.

According to Boby, when compared to other countries, Indonesia's budget portion to overcome climate change is still better. Because the average other countries are still below 2.5 percent of their total budget for climate change.

Boby said that based on the composition and total budget for climate change based on the 2016-2022 action, 58.4 percent or Rp332.84 trillion was used to mitigate the reduction in greenhouse gas emissions to the green industry baseline, waste management, energy and transportation.

Furthermore, 37.6 percent or IDR 214.2 trillion was used to adapt to decrease vulnerability, increase adaptive capacity and reduce water and health economic losses.

Then 3.9 percent or Rp. 22.4 trillion was used for Co-benefit, in the form of output in the form of mitigation and adaptation activities simultaneously for agricultural, marine and coastal forestry.

In addition, Boby conveyed that the need for mitigation action funding based on BUR-3 for 2018-2030 was IDR 4.002.44 trillion or an average of around IDR 307.88 trillion per year.

Meanwhile, the total mitigation funding from the APBN for mitigation and co-benefit actions for 2018 to 2022 is IDR 217.83 trillion or an average of IDR 43.57 trillion per year.

According to Boby, the state budget has only been able to meet about 14 percent of the annual mitigation action funding needs.