Sri Mulyani Presses The Importance Of Indonesian Participation In The Commitment Of Coal Transition

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

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani assessed that Indonesia's participation is important in the commitment to global coal transition because Indonesia is the largest coal producer in the world.

"All rich countries also ask for the fulfillment of the transitional commitment to Indonesia because without Indonesia's participation it is impossible to realize this global commitment," said Minister of Finance Sri Mulyani at the event "Bloomberg CEO of Forum: Moving Forward Together", quoted from Antara, Friday 11 November.

He said President Joko Widodo (Jokowi) had announced that Indonesia would make an energy transition at the 26th United Nations Climate Change Conference (The 26th United Nations Climate Change Conference of the Parties/COP26) last year.

In this commitment, Indonesia will retire coal early and even the Indonesian government together with PT Pembangkit Listrik Negara (PLN) have designed to identify which power plants will be retired, how much will it cost, conditions from the fiscal side, PLN balance sheet, and the private sector.

Sri Mulyani revealed that discussions with the private sector were carried out, especially if the power plant to be retired belonged to a private electricity developer or Independent Power Producer (IPP).

In addition, he continued, Indonesia is also trying to fulfill its coal transition commitment by starting to introduce a carbon tax and discussing how to introduce an even carbon market in Indonesia.

"What I said is that Indonesia is doing a lot of very serious and credible work so that we can fulfill this commitment," said Sri Mulyani.

On the other hand, he hopes that all countries can participate, especially those that really pollute the world with carbon emissions so that they can compensate.