Jakarta – The involvement of the private sector is needed to achieve the energy transition, since allocation for the new and renewable energy (NRE) sector through the State Budget (APBN) covers only around 30 percent.
This was conveyed by the President of the Bank Indonesia Sustainable Finance Working Group (SFWG) Haris Munandar during the hybrid seminar Our Role: Indonesia Towards Sustainable Finance by WWF Indonesia in Jakarta, Monday (22/8).
He said private investment is very much needed to support the government in achieving the energy transition towards low carbon development by 2030 and net zero emissions by 2060. Investment in the New and Renewable Energy (NRE) sector is an opportunity for the private sector, because it will bring benefits for the industry, the sector, and the sustainability of natural resources.
“Therefore, this is where investment is needed. … sustainability is an investment opportunity,” said Munandar, adding that involvement of the private sector would also greatly assist the allocation of the state budget in an effort to achieve energy transition.
“The burden of the state budget can only cover 30 percent, later it can be completed and perfected by the private sector itself organically, from within, namely making internal investments,” he said.
Presidency Chair of the Sustainable Finance Working Group (SFWG) of the Ministry of Finance, Dian Lestari, said in the efforts in the energy transition, the government has made various financing plans as stated in the National Medium-Term Development Plan (RPJMN) 2020-2024. She said the government has also provided various tax facilities, including tax incentives for industrial players in the country that support the energy transition.
In addition, the government also provides import duty exemption facilities for various equipment used for the development of New and Renewable Energy (NRE) in the country, such as geothermal. “Also special grants for low-emission vehicles, electric vehicles and so on can be seen from the policies that we only recently issued,” said Dian. (Hartatik)
Photo banner: Presidency Chair of the Sustainable Finance Working Group (SFWG) of Bank Indonesia Haris Munandar in the hybrid seminar Our Role: Indonesia Towards Sustainable Finance by WWF Indonesia in Jakarta, Monday (22/8). (Photo: Hartatik)