Jakarta – Climate change has a significant impact on the economy, including rising temperatures and natural disasters that affect the agricultural sector and food prices. The government is committed to reducing emissions by 43.20% by 2030 through fiscal policies that support the green economy transition.
Director General of Treasury, Astera Primanto Bhakti, emphasized that fiscal policy plays an important role in encouraging sustainable development. “Fiscal policy is the government’s main instrument in the green economy transition,” he said in a seminar entitled “Jakarta’s Green Economy and Fiscal Policy: A Pathway to Sustainable Development”.
The government is implementing a performance-based payment scheme to provide incentives to parties that contribute to reducing greenhouse gas (GHG) emissions. In addition, carbon trading infrastructure continues to be developed to be more efficient and transparent.
As part of this commitment, the Ministry of Finance has issued Green Sukuk with a value of US$ 6.9 billion to finance renewable energy projects, sustainable transportation, and waste management. “This scheme allows various sectors to actively participate in reducing emissions,” continued Astera.
In 2023, Indonesia received US$46 million from the Green Climate Fund thanks to a reduction of 20.3 million tons of CO2eq in the 2014-2016 period.
The PKS faction supports this policy and promotes green industry as a national priority. Meitri Citra Wardani, a member of the Indonesian House of Representatives from the PKS faction, stated that green industry is an urgent need. “Green industry not only reduces environmental impacts, but also increases resource efficiency,” she said.
The government has launched the Green Industry Assessment Program, which provides certification to sustainable companies as well as fiscal incentives such as tax deductions and investment facilities.
In the energy transition, Adi Budiarso, Head of the Financial Sector Policy Center, emphasized the importance of an inclusive transition roadmap.
“Indonesia needs a concrete strategy so that all parties can switch to more efficient clean energy,” he said.
One of the main initiatives is the Energy Transition Mechanism (ETM), which aims to replace coal-based power plants with renewable energy.
PT Sucofindo also supports this policy by ensuring the credibility of clean energy claims and carbon trading. “We are committed to maintaining transparency and accountability in carbon trading in Indonesia,” said Adi Budiarso.
With a mature fiscal policy, the government is optimistic that the green economy transition can run smoothly, create new jobs, and strengthen Indonesia’s economic and environmental resilience.
