Indonesia-OECD Supports Reducing Greenhouse Gas Emissions

Jakarta, InfoPublik - The Government of Indonesia and the Organization for Economic Cooperation and Development (OECD) are cooperating to strengthen governance practices and exchange experiences in various other fields.

In early 2019, the Indonesian delegation was invited to the OECD Headquarters in Paris to develop the clean energy sector in developing countries. Then at the end of 2019, the Government of Indonesia and the OECD officially launched Indonesia's Clean Energy Finance and Investment Mobilization (CEFIM) Program.

One of the main activities of the CEFIM Indonesia Program is the preparation of the Clean Energy Finance and Investment (CEFI) Policy Review of Indonesia which has been completed and is ready to be launched.

The report contains several implementation recommendations for Indonesia to support efforts to reduce greenhouse gas (GHG) emissions and accelerate Indonesia's clean and sustainable energy transition.

"I appreciate the OECD for compiling this comprehensive report describing challenges and opportunities in increasing financing and clean energy investment in Indonesia," said Coordinating Minister for the Economy Airlangga Hartarto Monday (6/28). He said it in his remarks at the online seminar for the Launch of the OECD Review Report on Indonesia's Clean Energy Financing and Investment Office of the Coordinating Ministry for Economic Affairs.

Indonesia's commitment to reduce GHG emissions by 29 percent by 2030 is gaining momentum because now is the best opportunity to collaborate with the global community to address the impacts of climate change in Indonesia.

Turning commitments into a series of actions requires substantial financial support, not just relying on APBN funds. Indonesia must have a strategic focus to reduce emission levels and unlock and optimize the potential of clean energy, which is abundantly available to attract investment to meet these needs.

"Stakeholder synergy is needed to solve all challenges so that in the end it can accelerate clean energy financing and investment in Indonesia," said Airlangga.

In supporting the financing of strategic infrastructure, including clean energy, the Government established the Sovereign Wealth Fund (SWF) and enacted the Job Creation Law to attract more investment. The new Online Single Submission (OSS) system is also expected to improve the ease of doing business level.

On the same occasion, Coordinating Minister Airlangga also conveyed the Government's various efforts in overcoming the challenges of the COVID-19 pandemic, including the provision of social assistance programs, incentives for MSME, and corporate business activities, increasing workforce capacity through Pre-Employment Cards. Also, the vaccination program as a game-changer continues to be optimized and has managed to reach the highest number of 1.3 million doses on June 26, 2021.

Airlangga also expressed his gratitude for the support and contributions of those who took part in the report completion. “Especially colleagues at the Ministry of Energy and Mineral Resources, Ministry of Finance, Bappenas, Ministry of Environment and Forestry, Ministry of Industry, Ministry of Investment/BKPM, Financial Services Authority, National Energy Council, State Electricity Enterprise, Sarana Multi Infrastruktur Enterprise, as well as associations in the clean energy sector and financial service institutions and other stakeholders,” continued Coordinating Minister Airlangga.

"Most importantly, I encourage OECD countries to be confident in financing and investing in clean energy projects in Indonesia. I hope all stakeholders can actively participate in accelerating low-carbon development in Indonesia," said Airlangga closing his remarks.

Also attending the online seminar were Danish Ambassador Lars Bo Larsen, Minister of Energy and Mineral Resources Arifin Tasrif, Chairman of the OJK Board of Commissioners Wimboh Santoso, and OECD Secretary-General Mathias Cormann, as well as echelon I officials from the Coordinating Ministry for the Economy, Ministry of Energy and Mineral Resources and Ministry of Environment and Forestry.

(Photo: Ekon Public Relations)

Author: Isma

Editor: Untung S

Translator: Wilda Stiana