The Efforts To Reduce CO2 Are Not Cheap, Sri Mulyani Reveals The Amount Of The Cost

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that efforts to reduce carbon dioxide (CO2) emissions required resources that were not cheap. According to her, cost efficiency can be achieved if using a more environmentally friendly scheme.

"The most important thing to reduce CO2 is forestry and land use (Folu) which has the biggest contribution to be able to reduce CO2 and the cost is relatively cheap, namely being able to reduce 41 percent or 700 million tons at a cost of IDR 90 trillion," she said in a webinar held by Pertamina, Tuesday, December 7.

According to the Minister of Finance, the amount of these costs will skyrocket if efforts to reduce CO2 are carried out through the conversion strategy of energy generation from conventional to green methods.

"However, if the energy sector contributes to reducing CO2 by around 450 million tons of CO2 equivalent, the cost is IDR 3.500 trillion. So you can imagine, energy is a very expensive sector and requires big costs to reduce CO2, but its position is very important in society,” she said.

For this reason, the Minister of Finance reminded Pertamina's strategic role in terms of environmental issues, especially those related to carbon dioxide reduction measures.

“It is important to understand that Pertamina has a very big responsibility. As the largest government-owned energy company, Pertamina plays a major role in Indonesia's energy transformation towards net zero emission," she said.

For information, Indonesia has set a fairly high ambition as a developing country, namely reducing greenhouse gas emissions by 29 percent with its own capabilities and 41 percent with international support by 2030.