The World Loses 178 Billion Dollars Due To Climate Change, RI Is Committed To Providing Protection Through Green Financing

Expert Staff to the Minister of Finance Suminto (Photo: screenshot of the Ministry of Finance Youtube)

JAKARTA - The government through the Expert Staff of the Minister of Finance for Financial Services and Capital Markets Suminto said a report from the Lancet Countdown agency stated that in 2020 there were 242 extreme events related to climate change with a total loss of 178 billion US dollars.

According to him, this condition shows a real indication that climate change is not a problem for one or two countries but also for the entire global community.

"Indonesia as part of the world community continues to provide commitments through the ratification of the Paris Agreement and the government seeks to reduce greenhouse gas emissions by 29 percent through its own efforts and 41 percent with international support," he said in a webinar today, Monday, August 22.

According to Suminto, this effort was followed by the allocation of funds in the State Budget of around Rp. 96 trillion, equivalent to 4 percent of state spending.

However, this value is still not sufficient so that efforts are needed to mobilize other sources of funding.

"The government continues to innovate in developing green financing instruments, such as the issuance of green bonds and green sukuk. These instruments support the development of environmentally friendly projects as well as encourage the deepening of financial markets in Indonesia," he said.

Suminto added that so far there have been two green sukuk products with a total value of US$3.5 billion for foreign markets and Rp11.8 trillion domestically.

"The government hopes that the development of this environmental instrument will not only be dominated by the government but also the private sector can participate," he said.

In the future, Sri Mulyani's subordinate stated that the state will accelerate the creation of a good sustainable financial ecosystem through the issuance of policies that are conducive to shaping the market in this sector.

"This is clearly intended to support the readiness of a sustainable green economy," concluded Suminto.