TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati announced on Thursday, August 27, 2020, that the government has allocated an annual fund of IDR 89.6 trillion since 2016 to tackle issues regarding climate change. The budget constitutes 3.9 percent of the total State Budget (APBN).
The amount is deemed important to meet the Nationally Determined Contribution (NDC) to set the world on a course towards sustainable development and reduce 29 percent of greenhouse gas emissions by 2030.
"We are in need of major funding to continue with the NDC therefore the finance ministry has developed the climate budget tagging," said Sri Mulyani in a press conference in Jakarta on Thursday, August 27, 2020.
Through the IDR 89.6 trillion budget, the government was able to fund 34 percent of policies issued to tackle climate change. Sri Mulyani also asserted that the Finance Ministry will continue to support the efforts to reduce carbon gas emissions implemented by state-ministries and organizations.
Moreover, the finance ministry has provided the renewable energy sector with tax holidays and allowances to further help the cause.