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JAKARTA - The government through the Deputy Minister of Finance (Wamenkeu) Suahasil Nazara stated that one of the pillars of Indonesia's economic growth in the future in the transition to a green economy is development that uses new and renewable energy (EBT).

According to him, the transition to a green economy also includes not only the construction of EBT but also reducing carbon dioxide (CO2) emissions.

Indonesia has committed to achieving Net Zero Emission by 2060. We are confident that Indonesia's economic development will still emit carbon emissions. However, we will compensate so that we will get Net Zero Emission," he said in a press release quoted Monday, December 12.

Suahasil added, the Indonesian government emphasized the position that the green economy and economic growth are not trading off each other. He said, the green economy is a source of Indonesia's new economic growth in the future.

"We are starting to reduce carbon emissions by retiring steam power plants from coal. Therefore, new renewable energy is really a source of new Indonesia's economic growth in the medium and long term," he said.

Sri Mulyani's deputy also said that many countries have returned to fossil fuels, such as the United States, releasing oil and European energy reserves that buy coal from countries around the world.

We understand that this is a short-term movement in order to protect the community. Europe, America is heading for a winter, winter which requires energy. Indonesia is doing an increase in fuel fossils in the form of increasing energy subsidies which we currently estimate will be above Rp500 trillion from the state budget," he said.

Suahasil said geopolitical tensions make energy prices at a relatively high level. This is a form of protection to the community because our people still need energy and still need economic activity so that recovery can take place quickly.

"But in the medium term, we believe that a green economy and economic growth will complement each other," he added.

Untuk itu, sambung Suahasil, Indonesia telah meluncurkan Energy Transition Mechanism (ETM), sebuah mekanisme di mana Indonesia akan melakukan early retirement atau penghentian lebih awal dari beberapa pembangkit listrik tenaga tenaga kita.

"This is what we have designed and we will continue to design it in the future," he concluded.


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