Expanding Financial Market Development, RI Encourages G20 Countries Commitment To Accomplish Paris Agreement

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The Indonesian government through the Ministry of Finance and Bank Indonesia encourages the commitment of the countries that are members of the G20 to be responsive and concerned about the issue of climate change.

Head of the Center for Climate Change and Multilateral Financing Policy at the Ministry of Finance Dian Lestari said this was needed to be able to expand opportunities for more sustainable economic development.

"It is important to create an enabling environment to help financial markets support efforts to achieve the goals of the Paris Agreement," he said when representing Indonesia in the G20 agenda series entitled Sustainable Finance Working Group (SFWG), as reported by the official website, Wednesday, 26 January.

According to Dian, discussions on public policies that encourage financing and investment are crucial in supporting a just and affordable transition.

“The report will include monitoring of actions that have been carried out by G20 member countries voluntarily in both the Finance Track and the Sherpa Track, international organizations, and other international networks and initiatives, taking into account that these actions comply with the details in the road map that has been set,” he said.

As discussed in the first meeting of Finance and Central Bank Deputies on 9-10 December 2021, three topics for the 2022 work plan were also discussed in this SFWG meeting. First, the development of a transitional financial framework and increasing the credibility of financial institution commitments.

Second, the improvement of sustainable financial instruments, with a focus on accessibility and affordability. And the third is public policies that encourage financing and investment that supports the transition.

"These three topics will focus on the impact of public policies on financial markets and policy options by taking into account the diversity of conditions in each country," concluded Dian.