Sri Mulyani Indrawati, Indonesia’s Minister of Finance, remarked that Indonesia need IDR 4000 trillion to achieve the carbon dioxide emission reduction target in 2030.
She mentioned that based on the NDC (Nationally Determined Contribution), Indonesia has a target to reduce the emission up to 32 to 43%. Subsequently, it also means Indonesia will need an enormous expense, up to USD 281 billion or IDR 4,002 trillion.
“Total expense that will be needed to reach our NDC is approximately IDR 4,002 trillion. Or USD 281 billion until 2030,” Sri Mulyani said when attending Southeast Asia Development Symposium 2023 in Nusa Dua, Bali as a Speaker.
Read Also: Gregoria Won the Spain Masters 2023, Praveen/Melati Runner Up
Sri Mulyani also mentioned how important it is to create a policy framework regarding this issue. Followed by a proper framework regulation and climate investment. In addition, it will need to include the participation of both state and private companies.
In 2021, the government has issued a fund up to Rp 3.013 trillion to reach the NDC target in 2030. This is significantly around 8 percent from the total required investment in Indonesia.
Sri Mulyani will further address several fiscal incentives and innovations to suppress Indonesia’s carbon emission. This will act as a way to create a catalyst fund for investing on the green project to further develop the green industry.
“The incentives will include the holiday tax usage, tax allowance, PPN facility, import duty and also property tax.”
