JAKARTA (Antara) – Mercy Christy Berends, head of the Green Economy Caucus of the House of Representatives (DPR), said that the DPR supports the implementation of blended finance arranged by the Ministry of Finance to accelerate the clean energy transition.
Mixed finance is a financing scheme that combines multiple sources, such as the government budget, the private sector and donors.
During the Indonesia Net-Zero Summit (INZS) 2023 here on Saturday, Berends said she sees blended finance as one of the efficient ways to accelerate Indonesia’s energy transition without relying on the state budget.
The government currently has three hybrid finance platforms.
The first is SDG Indonesia One which is a hybrid finance platform managed by state-owned enterprise PT Sarna Multi Infrastructure (SMI) to finance Sustainable Development Goals (SDGs) from multiple sources.
These include international donors, climate finance institutions, green investors, commercial banks, as well as multilateral development banks (MDBs).
The second is through Public-Private Partnership (PPP) which is an arrangement between public and private funding to finance certain infrastructure projects.
The third is the Green Bond which is an innovative financing instrument to support comprehensive fiscal policy and green infrastructure in Indonesia.
Furthermore, to accelerate the energy transition process, Berends said the House is currently awaiting the release of 2045, 2050 and 2060 energy transition road maps by the Ministry of Energy and Mineral Resources and state-run enterprise PT PLN (Persero). .
The legislator of the House’s Commission VII said that with the release of this road map, the budget estimate would be ready.
He estimated that the required budget reached approximately Rp4 thousand trillion, or approximately US$265.95 billion.
“So, if we divide it by 2030, there is about Rp300-Rp400 trillion (US$19.95-US$26.60 billion) to solve the issue,” he said.
INZS is an annual climate conference organized by the Foreign Policy Community of Indonesia (FPCI).
It serves as a meeting place for ministers, officials, diplomats, youth, civil societies, musicians, celebrities and various other groups to discuss climate issues specifically in Indonesia.
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