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Green Infrastructure Brings Full Potential, Sri Mulyani Says

10 June 2015 15:12 WIB

World Bank Group Managing Director, Sri Mulyani Indrawati, berpidato saat acara pembukaan konferensi Indonesia Green Infrastructur Summit 2015 di Jakarta, 9 Juni 2015. TEMPO/Wisnu Agung Prasetyo

TEMPO.CO, Jakarta - In the last 20 years, economic growth has helped more than a billion people out of poverty. Nevertheless, rapid growth often comes at the expense of the environment. The World Bank Managing Director Sri Mulyani Indrawati said that this would have major negative implications for future generations.

"Indonesia's GDP has doubled in the last decade and poverty has halved, down to 11.3 percent in 2014. But they come with the high price of environmental degradation," Sri said during the Indonesia Green Infrastructure Summit at the Fairmont Hotel, Jakarta, on June 9, 2015.

Thus, Indonesia must begin to focus on 'green infrastructure' that can push forward sustainable development goals. "As you all know well, infrastructure will key to helping countries achieve their full potential," said Sri Mulyani.

Sri highlighted three areas that are critical to 'green' growth, access to clean and renewable energy, manage natural resource responsibly and the need for strong policies and good governance. According to the former Indonesian finance minister, good governance is the biggest challenge for many countries, including Indonesia.

The Trade Minister Rachmat Gobel mentioned that the government's infrastructure programs would require more than Rp 5 trillion or Rp 1.1 trillion annually. "Therefore, good partnership between the government and the private sector will encourage foreign investors to invest in Indonesia," Rachmat said. According to the Indonesia Investment Coordination Board (BKPM), between 2010 and 2014, foreign investors contributed some US$ 26.81 billion towards 'green' infrastructure, while domestic investors contributed Rp 139 trillion.

AMANDA SIDDHARTA



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