Sri Mulyani Opens Contest: Forestry Fintech Wanted To Support A Green Economy, Budget In Trillions!

Minister of Finance Sri Mulyani (Photo: Doc. Ministry of Finance)

JAKARTA – The government through the Ministry of Finance (Kemenkeu) is getting serious about managing environmental issues in order to support the goal of realizing a green economy faster.

Recently, the Minister of Finance (Menkeu) Sri Mulyani revealed that the government needed collaboration with the private sector to be able to jointly carry out development targets that were in line with climate change mitigation efforts.

Specifically, this collaboration need is expected to come from modern companies that use technology 4.0 in their productive activities.

"If friends in the forestry and environmental sectors have fintech regarding the management (which supports) the performance of the BPDLH (Environmental Fund Management Agency), we will be very open," she said at the VII Indonesian Forestry Congress on Tuesday, June 28.

According to the Minister of Finance, the intention of this collaboration has been communicated with the Ministry of Environment and Forestry (KLHK) as a technical institution that handles issues in this sector.

"Me and Mrs. Baya (Siti Nurbaya - Minister of the Environment) will try to properly govern the BPDLH according to our needs in protecting the environment," she said.

For information, efforts to optimize the performance of BPDLH are intended to accelerate RI's intention in obtaining benefits from carbon trading. This was conveyed directly by the state treasurer on the occasion.

“BPDLH will later become an institution that plays an important role in implementing the carbon economic value. Because, with the economic value of carbon, we can do carbon trading, including trading with foreign countries. So we can benefit from the carbon market," she said.

Meanwhile, the Environmental Fund Management Agency is a government Public Service Agency (BLU) that was born from the merger of the BLU center for financing forest development and the KLHK environmental conservation program.

BPDLH is said to manage and provide the funds needed for protection, preservation and conservation, managing biodiversity, and climate change and mitigation.

In its work, BPDLH not only manages funds in the environmental and forestry sectors, but also in the fields of energy, agriculture, transportation, marine and fisheries, and industry.

The editorial search revealed that the State Budget (APBN) had given a fairly large value tagging of the climate budget tagging as one of the national programs.

It is noted that the 2021 APBN support for the issue of climate change is IDR 104 trillion. This figure tends to be consistent from previous periods, with details in the 2016 APBNP of IDR 72.4 trillion, the 2017 APBN of IDR 95.6 trillion, the 2018 APBN of IDR 109.7 trillion, and the 2020 State Budget of IDR 77 trillion.