TEMPO.CO, Jakarta - Collaboration work in reducing carbon emission between the Government of Japan and Indonesia, which was first established in 2013, had resulted in a US$150 million investment in the joint effort. Cooperation between the two governments was carried out through Join Crediting Mechanism (JCM).
Coordinating Minister for Economic Affairs Darmin Nasution, stated that economic growth should not be separated from low carbon emission and sustainable growth. "The low carbon emission development is a new trend," said Darmin during the 'National Seminar on Bilateral Cooperation, Celebrating 3 Years of Low Carbon Growth Partnership between Indonesia and Japan' on Monday, August 29, 2016.
Under the JCM scheme, Japanese and Indonesian companies, inclusive of private and state-owned enterprises, invest in the reduction of carbon emission through incentives provided by the Japanese government.
Darmin added that cooperation between Indonesia and Japan signifies a commitment mad eby both governments in reducing carbon emission by 26 percent in 2020, and 29 percent by 2030.
Darmin stated that since 2013, the Japanese government has provided a subsidy of more than US$37 million to Indonesian companies.
Through subsidies provided by the Japanese government, companies in Indonesia have made their investment reaching a total value of US$113 million. "Therefore, the total value invested in the JCM scheme has reached more than US$150 million," said Deputy of International Cooperation of the Coordinating Ministry for Economic Affairs Rizal Affandi Lukman.
Until recently, through the financing scheme, feasibility studies are being carried out on 108 projects. Meanwhile, as many as 28 projects will be implemented immediately. "A total of 28 projects are currently in the pipeline. [The ongoing projects] covers several industries, including the cement industry, forestry and also technology," said Rizal.
ANGELINA ANJAR SAWITRI
