At The ASEAN Forum, Indonesia Affirms Openness For Energy And Green Business Transition Efforts

Head of the Fiscal Policy Agency of the Ministry of Finance Febrio Kacaribu (Photo: Capture the Youtube screen of the Ministry of Finance)

The government through the Ministry of Finance (Kemenkeu) emphasized that Indonesia has a very open approach to energy transition efforts and green business models in accordance with environmental principles.

This was emphasized by the Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance when speaking at the Workshop on Energy Transition Mechanism (ETM) in today's ASEAN Finance Ministers and Central Bank Governments Meeting (AFMGM) agenda series.

"Indonesia is very clearly open to transition and green business," he said in Jakarta, Wednesday, August 23.

According to Febrio, through the government's commitment, a number of relevant ministries/agencies are now continuing to prepare various regulatory instruments as the basis for implementation in the field. It was also stated that the green business scheme has considerable economic potential in the future.

The transition and green investment in Indonesia are currently developing. The government then responded by issuing fiscal incentives to attract more interest from private investors to be involved in the green industry. Like some of these fiscal incentives are tax holidays, tax allowances, and also other facilities," he said.

Febrio explained that the strategic steps taken by the government further support the business climate and the green business ecosystem in Indonesia.

"Based on the data we have, in the period 2021 to 2022, Indonesia has succeeded in withdrawing an investment commitment of US$20.3 billion for the supply chain of electric vehicles. Of that amount, the largest portion is for the production of batteries (electric vehicles) worth US$15 billion," he said.