Coordinating Minister Airlangga: Paris Agreement Makes The World Enter The Energy Transition Period To Create Environmentally Friendly Development

JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto conveyed that the Paris Agreement made the world enter an energy transition period that could create environmentally friendly sustainable development.

"Future development is directed at maintaining a balance between economic growth, emission reduction targets, and the carrying capacity of natural resources," said Coordinating Minister Airlangga Hartarto in a statement quoted by Antara, Friday, October 8.

The government, he continued, will make policies that accommodate the economic value of carbon, the implementation of which will be carried out in stages.

Although the government is focusing on maintaining Indonesia's economic recovery, Coordinating Minister Airlangga said the government has not forgotten its long-term aspirations, for example in dealing with the problem of global warming due to climate change.

This, he said, would have an impact on the obligation of all countries to make an energy transition.

According to Coordinating Minister Airlangga, future energy consumption needs to pay attention to carbon emissions, so that government policies lead to providing incentives for the use of clean energy such as renewable energy. Then at the same time, he said, making disincentive policies, even stopping or moratorium on the use of fossil energy, especially those with relatively high carbon emissions.

He further said that the imposition of a carbon tax will not be carried out immediately, but will be carried out in stages through studies from various aspects, both economic, social, and political. and will involve various groups, including the private sector.

"The government cannot act alone. The private sector, academia and think-tanks, and civil society organizations or non-governmental organizations, need to work together to support the government in producing long-term oriented policies, but not forgetting to overcome challenges the current short term," said Coordinating Minister Airlangga

Currently, the price of gas and coal in the world energy market is skyrocketing, followed by an increase in oil prices. This has led to an energy crisis in Europe, particularly the UK and China.

"The government continues to strive to improve the investment climate in order to increase investment competitiveness in the energy sector through various incentives. This will increase state revenues that can be used as national development capital," said Coordinating Minister Airlangga.