Sri Mulyani Asks For Climate Change Issues To Be Concerned Like COVID-19

Minister of Finance Sri Mulyani Indrawati. (Photo: Instagram @smindrawati)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the current climate change issue is an issue that must be the responsibility of all parties.

"I hope that our commitment to responding to climate change issues is the same as dealing with COVID-19 and that the community must actively participate in tackling the impacts caused by environmental change", she said in the webinar Climate Change Challenge: Preparing for Indonesia's Green and Sustainable Future, Friday, June 11.

According to the Minister of Finance, her party will continue to support the aspect of providing budget and also policies that encourage the creation of healthy environmental conditions for the community.

"The government will continue to formulate various financing instruments and create programs that are consistent with the issue of climate change", he said.

For information, Indonesia has ratified the Paris Agreement through Law 16 of 2016 and has submitted its commitment through Nationally Determined Contributions (NDCs), namely reducing emissions by 29 percent with their own efforts and up to 41 percent with international support.

Based on the estimated funding needs for the implementation of the NDC, Indonesia needs funding of USD 247 billion or approximately IDR 3.461 trillion for the 2018-2030 period according to the Second Biennial Update Report 2018.

Referring to the state budget funding provided for climate change annually, there is still a large gap, which is around 60-70 percent of the total funding requirement.

"The mobilization of international funding to fill the gap is also expected to accelerate the implementation of environmental protection and management programs, including climate change control", explained Minister of Finance Sri Mulyani.

To note, one of the government's efforts to support NDC funding or environmental funding is the establishment of the Indonesian Environment Fund (IEF) or the so-called Environmental Fund Management Agency (BPDLH) in 2019.

This agency is a Public Service Agency (BLU) under the Ministry of Finance whose management applies the principles of transparency, accountability, prudence, and professionalism. In addition, the IEF is designed by applying international governance standards.