Sri Mulyani: Decreased Deforestation Evidence That The Republic Of Indonesia Is Able To Manage Environmental Funds

Minister of Finance Sri Mulyani. (Photo: Doc. ANTARA)

Minister of Finance Sri Mulyani stated that Indonesia's performance in reducing deforestation is proof that the government through the Environmental Fund Management Agency (BPDLH) under the Ministry of Finance is able to manage environmental funds from abroad.

Sri Mulyani explained that Norway is one of the countries that pays attention to how Indonesia implements its commitment to reducing deforestation.

"BPDLH, which is under the Ministry of Finance, but the director is Mrs. Siti (Minister of Environment and Forestry Siti Nurbaya) and various other ministers have been trusted by the international community as an institution that is able to deliver efficiently, accountably and transparently the funds are based on the results," Sri Mulyani said as quoted by ANTARA, Sunday, June 2.

The state treasurer explained that Indonesia and Norway have collaborated through funding based on the contribution (result based contribution) to reduce emissions from deforestation and forest degradation (REDD+).

Sri Mulyani noted that there was a decrease of 20 million tons of carbon emissions in 2014-2016 which was later compensated for by REDD+ through BPDLH.

Funding can only be disbursed if Indonesia's performance or achievements in reducing deforestation.

BPDLH, he said, also not only received grants from the Government of Norway, but also from the World Bank and other philanthropics outside the management of APBN funds.

"This is not because we ask that from outside the state budget, the state will still be present, there are funds in this case to prevent disaster funds from Rp7.5 trillion, it has been included in BPDLH and they also manage reforestation funds," said Sri Mulyani.

On the previous occasion, Minister of Environment and Forestry (LHK) Siti Nurbaya together with Sri Mulyani and Norwegian Minister of Climate and Environment Andreas Bjelland Eriksen visited Gunung Leuser National Park.

The visit was also to show Indonesia's performance in reducing deforestation in order to support the achievement of Indonesia's FOLU Net Sink 2030 to support reducing greenhouse gas emissions in the forestry sector.

From the visit, the Minister of Finance assessed the importance of Minister Erikson's perception of how leadership in Indonesia, as well as the management of environmental funds.

This is evident in terms of economic and social activity in Gunung Leuser Bukit Lawang National Park which has improved, but can still protect the environment.

"The most important thing is Indonesia's reputation to be able to protect our own environment, because it is important for our people and most importantly in the use of funds, including for the surrounding community," concluded Sri Mulyani.