UK Grants Rp512 billion for Phase Two of Indonesian Low Carbon Development

TEMPO.CO, Jakarta - The UK granted Rp512 billion for the second phase of the Low Carbon Development Initiative (LCDI). The grant is expected to support the Indonesian government to reach the zero emission target by 2060, or sooner.

The launch of the UK's second phase grant for this initiative was announced by UK Minister for Indo-Pacific Anne-Marie Trevelyan in her visit to Indonesia from October 1 to 2, 2023, along with Indonesian Minister of National Development Planning Suharso Monoarfa.

Both ministers inked the technical agreement of LCDI on Monday at the Bappenas office in Jakarta. Trevelyan stated that the grant from the UK for LCDI will complete the UK's international finance mobilization to tackle climate emergency.

"We see LCDI as the backbone of Indonesian green economic growth and our bilateral cooperation in terms of climate issues," she said during a press conference on Monday. 

She hopes that LCDI completes the UK's support toward Indonesia's green transition in other areas, such as the Indonesia Just Energy Transition Partnership (JETP).

Indonesia plans to develop the LCDI's financing outside the State Budget and the Regional Budget by involving the private sector, whether domestically or globally. 

"With the intention to develop or maintain the earth's condition together so green growth could be implemented," said Bappenas Expert Staff of Social Department and Poverty Control Vivi Yulaswati.

Phase Two of LCDI will involve eleven provinces, namely West Jaca, Central Java, Riau Islands, Papua, NTB, Bengkulu, Maluku, North Sumatra, South Sulawesi, and Bali. Environmental Director at Bappenas, Merdilzam, also mentioned that other provinces are free to join LCDI.

LCDI is the Indonesian government's main policy to reduce emissions and encourage sustainable growth and development. UK's first phase grant was launched in 2017, marking the first time climate targets were included in Indonesia's development plans.

Trevelyan, on her second day of visit after the signing of the LCDI agreement, will meet with the Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan to discuss JETP and the economic agreement.

"I'm awaiting the discussion with [Minister Luhut] this afternoon, surrounding the issues of JETP," Trevelyn said when asked by Tempo.

NABIILA AZZAHRA ABDULLAH

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