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JAKARTA - Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that it is important to accelerate economic recovery and investment in the green economy and blue economy to accelerate sustainable development.

"With active cooperation and participation from all parties, we can accelerate economic recovery and investment in the green and blue economy, as well as encourage SDG's in order to encourage sustainable economic development," said Airlangga, in his official statement, in Jakarta, as reported by Antara. , Friday, March 11th.

The government encourages the private sector to be involved in investing to encourage sustainable development, especially in the midst of Indonesia's ongoing G20 Presidency, where the main agenda focuses on three things, namely the global health architecture, digital economic transformation, and energy transition.

"Regarding the energy transition, new and renewable energy is very relevant," said Airlangga.

In realizing this transformation step, continued Airlangga, Indonesia is currently reviewing the appropriate financing mechanism. This is accompanied by efforts to encourage investment in renewable energy which is currently being developed in various regions in Indonesia, including hydropower and solar, including efforts to introduce carbon capture and storage technology.

In addition, the government is also issuing green sukuk with the aim of expanding the investment base that is environmentally and socially responsible, while encouraging long-term sustainable growth that will benefit companies and investors.

“The potential in the renewable energy sector must be followed by a clear scenario and roadmap, including in terms of funding and investment. Therefore, all elements are expected to immediately prepare better infrastructure, tools and instruments in 2022, especially related to the green economy," he said.

The mechanism for the economic value of carbon as an incentive in achieving emission reductions is also continuously being developed. Budget tagging for the climate budget in the APBN has been carried out and the implementation of a carbon tax in dealing with climate change has been regulated in Presidential Regulation Number 98 of 2021 concerning the Implementation of Carbon Economic Value (Carbon Pricing).


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