Arsjad Rasjid Invites Private To Reduce Carbon Emissions

Chairman of the Indonesian Chamber of Commerce and Industry, Arsjad Rasjid. (Photo: Doc. Antara)

JAKARTA - Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Arsjad Rasjid, is committed to gathering the participation of the entire private sector to participate in efforts to reduce carbon emissions in the country.

Arsjad said the way is to integrate it into the cycle of economic activity that is carried out. In this way, the private sector will participate in contributing to the decarbonization effort.

As is known, the balance between the government and the private sector is very important for achieving the Nationally Determined Contribution (NDC). Where Indonesia is targeting a 29 percent reduction in Greenhouse Gas (GHG) emissions in the 2020-2030 period, by the Paris Agreement in 2015 which was later ratified through Law Number 16 of 2016.

"On the utility-scale, Kadin sees a lot of interest from domestic, regional and even international parties who have implemented Environmental, Social, and Governance (ESG) practices or often called Environmental, Social and Governance (LST) and want to take part in the growth of renewable energy in Indonesia. In this case, Kadin appreciates the commitment of the ESDM Ministry and PT PLN, especially in issuing the Green RUPTL (Electricity Supply Business Plan) for example", he said in a webinar, Thursday, October 21.

Arsjad explained that on a smaller but still important scale, Kadin sees that many from the private sector are now increasingly interested in installing solar energy panels as part of the decarbonization effort.

Furthermore, the President Director of Indika Energy said he was optimistic that with the business model and financing schemes that were more mature around the solar energy panel industry, Kadin could encourage more investment in the rooftop solar value chain, in the form of solar panels, power electronics, energy storage, and EPC service.

"This, in turn, will create a positive feedback cycle that allows the creation of a green economy or green industry", he said.

According to Arsjad, the role of the private sector in the development of renewable energy or in efforts to decarbonize is not only in GHG mitigation efforts.

"Because if done with the right strategy, it can also spur the growth of new industries and provide double benefits for Indonesia", he explained.