Jakarta, Indonesianpost.com – Indonesian Finance Minister Sri Mulyani Indrawati emphasized the importance of energy transition in addressing global economic challenges. During a meeting with UK Special Representative for Climate Rachel Kyte, she pointed out that disruptions in supply chains have delayed the transition process, making it even more complex amid the current global dynamics.
Sri Mulyani explained that the weakening global economy significantly impacts the energy transition. “A slowdown in green energy investment due to weak economic conditions will extend reliance on non-renewable energy like coal, worsening climate change impacts,” she said.
The Indonesian government has allocated Rp610.12 trillion (nearly US$37 billion) from the State Budget for climate action between 2016 and 2023, with an average of Rp76.3 trillion (US$4.6 billion) per year. Despite this, the funds cover just 12.3% of the country’s climate financing needs until 2030.
To optimize financing, the government has introduced tax incentives, particularly for renewable energy and electric vehicles, and plans to issue green sukuk, SDG bonds, and sustainable financial taxonomies. The government is also encouraging private sector involvement in reducing carbon emissions and promoting sustainable practices.
Sri Mulyani stressed the urgency of addressing energy transition challenges, highlighting the role of blended finance and the private sector in achieving climate goals. (BL/ANTARA)
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