TEMPO.CO, Jakarta - A researcher from the Institute for Development of Economics and Finance (Indef) Dhenny Yuartha said green inflation is yet to become a relevant issue in Indonesia. According to him, the yellow vest protest brought up by Gibran Rakabuming Raka during the vice presidential debate was irrelevant.

"France does not have enough resources to transition to new renewable energy (NRE), thus funding must be increased and elastic to any price changes," he said virtually on Monday.

For example, Dhenny explained, that when there is a hike in energy commodities such as coal and oil, the climate in developed countries cannot follow through with energy transition as quickly as Indonesia. That, he said, will create a bigger financial impact.

In addition, green inflation is caused by the shift to energy transition due to financial burden. The example given is when people try to fully shift to electric vehicles without adequate technology. "There is no other choice but to import, and when the demand is high with limiter supplies, the cost is imposed on the consumers," he said.

Dhenny believed that green inflation is irrelevant in Indonesia since the green transition is phased out and balanced with governmental policies. However, he said, the probability is not a zero.

"It will probably occur to technologies such as solar panels which are still imported, or other renewable energy techs," he said.

The green inflation started gaining traffic after vice presidential candidate number 2 Gibran Rakabuming Raka brought it up during the debate last Sunday. He asked to rival Mahfud Md on how to anticipate greenflation, or green inflation.

After presenting on the green economy, Mahfud thus said green inflation could be anticipated with policies. Meanwhile, Gibran claimed that green inflation is a danger to Indonesia, giving an example of the yellow vest protests in France.

RIRI RAHAYU

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