Moeldoko Reaffirms Indonesia's Commitment Towards A Green Economy

Dr. Moeldoko was a keynote speaker at the CNBC Indonesia Green Economic Forum 2023, in Jakarta, Monday 22 May. (docKSP)

JAKARTA - Presidential Chief of Staff Dr. Moeldoko emphasized that Indonesia's commitment to transforming the economy towards a green and sustainable economy is clear. This is evidenced by the existence of various government policies related to land restoration damaged, prevention of deforestation, improvement of land mapping, and the establishment of special institutions for land management.

These various policies, said Moeldoko, have produced significant results to reduce carbon emissions production. And this is recognized by the World Bank. They assess that Indonesia's path to a green economy is already on the track," said Moeldoko at the Green Economic Forum 2023 event, in Jakarta, Monday 22 May.

Moeldoko said that clear evidence of the transformation of the green economy in Indonesia was able to reduce deforestation, forest fires to 88 percent, and the rehabilitation of mangrove forests to reach 600 thousand hectares by 2024. "The government also targets the construction of thirty thousand hectares of green industrial areas," he said.

As for the net zero emission target in 2060, said Moeldoko, the government has accelerated the development of electricity-based clean transportation or renewable energy. Especially for the clean transportation policy, he continued, the government has issued Presidential Decree No. 55/2019 concerning the Acceleration of Battery-Based Electric Motorized Vehicles, and Presidential Instruction No. 7/2022 concerning the Use of Battery-Based Electric Motor Vehicles as Operational Service Vehicles.

"And recently there was also a government assistance policy for the purchase of two-wheeled and four-wheeled electric vehicles. This is all a form of the government's commitment to realizing net zero emissions," he explained.

On that occasion, Moeldoko also conveyed three challenges for Indonesia in carrying out the energy transition. First, the percentage of new and renewable energy usage in power plants in Indonesia is 4 percent 6 percent. Second, the availability of funds is estimated to reach IDR 3,799 trillion. Third, the EU policy regarding the imposition of tariffs for products categorized as non-green.

"I invite all of us not to see it as an obstacle. We need to consider it a challenge, which if answered properly will be an opportunity for Indonesia," concluded Moeldoko.