Good News For The People Of East Kalimantan! This Foreign Institution Provides Fresh Funds Of IDR 1.5 Trillion, Money For What?

East Kalimantan Governor's Office. (Photo: Wikipedia)

JAKARTA - President Director of the Ministry of Finance's Environmental Fund Management Agency (BPDLH), Djoko Hendratto, confirmed that an international non-profit organization, namely the Forest Carbon Partnership Facility (FCFP), is planning to distribute funds totaling US $ 110 million or the equivalent of Rp1.57 trillion (exchange rate Rp.14,289 ) to help preserve the environment in East Kalimantan (Kaltim).

"These funds are channeled specifically for the province of East Kalimantan," he said in an online press conference, Thursday, May 27.

Djoko added that the funding commitment is in accordance with the signing of the FCFP Carbon Fund Emission Reduction Payment Agreement (EFPA) on November 27, 2020 between the Indonesian government and the International Bank for Reconstruction and Development (IBRD).

"Currently in the process of finalizing the benefit sharing plan by BPDLH, the Ministry of Environment and Forestry, and the Provincial Government of East Kalimantan," he said.

Furthermore, Djoko explained that the funds disbursed were not entirely received, but gradually in accordance with the predetermined carbon emission reduction target.

In detail, he revealed that on 18 June 2019 to 31 December 2020 a US $ 25 million fund was channeled for a target of reducing 5 million tons of carbon.

Then, January 1, 2021 to December 31, 2022, amounting to 40 million US dollars for 8 million tons of carbon. Finally, it is planned to disburse funds of 45 million US dollars in the period January 1, 2023 to December 31, 2024 for the target of reducing 9 million tons of carbon.

"This is a form of hard work between Indonesia and the international community in joint action in dealing with various environmental impacts," he said.

For information, BPDLH is a government representative who acts as a trustee for fund or program owners. Meanwhile, the technical authority and program implementation remain with the ministry / agency as the program owner.

Meanwhile, the management of environmental funds by BPDLH is carried out based on a contract with the owner of the fund or program.

BPDLH itself is an embodiment of the mandate of Government Regulation number 46 of 2017 concerning Environmental Economic Instruments and Presidential Regulation number 77 of 2018 concerning Management of Environmental Funds.

"These funds are used to overcome the climate budget gap in the APBN and APBD," he said.