Energy Transition Needs IDR 4,000 Trillion, RI Asks World Bank To Immediately Realize Support

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA Minister of Finance (Menkeu) Sri Mulyani is known to have taken the time to meet with the President of the World Bank (World Bank) Ajay Banga on the official agenda of the G20 in India this week. During the bilateral meeting, the state treasurer said that Indonesia was strongly committed to overcoming the impact of climate change.

"I conveyed to President Ajay that reform efforts in various fields have been carried out by the Indonesian government through regulatory reforms such as the P2SK Law, the HKPD Law, and the HPP Law," he said as reported by the official website, Thursday, July 20.

According to the Minister of Finance, Indonesia remains on the main track to encourage the creation of a green economy.

"Indonesia welcomes support from various parties to implement energy transition mechanism (ETM), especially in early retirement of coal-based power plants," he said

In addition, the green economy is currently the main pillar of Indonesia's economic transformation strategy. The Minister of Finance hopes that the support from the World Bank will accelerate the transition of the energy sector in Indonesia.

"Hopefully continued support from the World Bank can support the transition of the energy sector that is fair in Indonesia," he stressed.

Previously, the Minister of Finance had mentioned the implications of not being easy and not cheap due to climate change. Meanwhile, Indonesia has made a roadmap to reduce carbon emissions through renewable methods.

However, achieving this commitment requires costs that are also not cheap or reach Rp. 4,000 trillion by 2030. So in this case, the role of the private sector of the community is very important.