Jaga Alam Indonesia, Foreigners Disburse IDR12.5 Trillion In Funds Through The Ministry Of Finance's BPDLH

JAKARTA - The government through the Ministry of Finance's Environmental Fund Management Agency (BPDLH) held a Kick Off Meeting for environmental fund management aimed at supporting the priority programs of the relevant ministries / agencies.

BPDLH President Director Djoko Hendratto said that his party, as an extension of the government, only acts as the recipient of the managed funds, while project implementation in the field will be carried out by the ministry or authorized institution.

"This is intended to ensure that the implementation of work and project development remains professional," he said in a virtual press conference, Thursday, May 27.

Djoko added, Indonesia as one of the countries that has ratified the Paris Agreement through Law 16 of 2016 has conveyed a commitment to reduce carbon emissions by up to 41 percent in the next few years.

This then had an impact on the budget side with an estimated budget requirement of around US $ 247 million or the equivalent of IDR 3.4 trillion for the 2018-2030 period.

Referring to APBN funding, there is still a fairly large gap, which is around 60-70 percent of the total funding requirement.

"For this reason, BPDLH was formed in 2019 which is a Public Service Agency (BLU) under the Ministry of Finance whose management applies the principles of transparency, accountability, prudence and professionalism, as well as international governance standards," said Djoko.

For information, this year BPDLH is planned to start receiving and managing various funds from international institutions for the purpose of environmental improvement.

The first is the Green Climate Fund (GCF) through a performance based payment mechanism with a total of US $ 103 million, whose initial disbursement plan is in 2021.

Second, REDD + from Norway with an amount of 560 million US dollars with a result based payment scheme. Under this program, a total of 56 million US dollars has been provided through a custodian bank account at BNI that was appointed in December 2020.

Three, the Forest Carbon Partnership Facility (FCPF) with an amount of US $ 110 million, which will be given in stages over the next four years to 2025. The plan is that this program is aimed specifically at the East Kalimantan region with details of the 2019 fund disbursement of US $ 25 million.

Then, 2021 to 2022 amounted to 40 million US dollars, and 2023 to 2024 amounted to 45 million US dollars. It should be noted that the disbursement of funds will continue to flow if the government and project implementers are able to achieve the expected carbon emission reduction targets.

Then the fourth is from the BioCarbon Fund (BCF) of US $ 60 million to improve the quality of the environment in Jambi until 2025.

Five, the World Bank (World Bank) with a budget of 2 million US dollars, and the last one is the Ford Foundation with 1 million US dollars.

In total, the potential for managed funds handled by BPDLH reaches a value of Rp. 876 million US dollars or the equivalent of Rp. 12.5 trillion (exchange rate of Rp. 14,289).

For information, BPDLH is the embodiment of the mandate of Government Regulation number 46 of 2017 concerning Environmental Economic Instruments and Presidential Regulation number 77 of 2018 concerning Management of Environmental Funds.

"BPDLH is expected to become a trusted institution that manages environmental funds to support the implementation of priority programs, including climate change control, by referring to the contracts built by the fund providers," Djoko concluded.