Indonesia Engages Business Sector in Emission Reduction and International Funding Partnerships

TEMPO.CO, Jakarta - Indonesia's Minister of Environment and Forestry, Siti Nurbaya Bakar, announced that her ministry (KLHK) is exploring additional schemes to engage business entities in funding efforts to reduce greenhouse gas emissions and meet the nation's climate goals.

Following the inauguration of the Result Based Contribution Workshop on Indonesia's FOLU Net Sink 2030 in Jakarta on Thursday, she highlighted Indonesia's support from various international partners, including a notable collaboration with Norway through the Result Based Contribution (RBC) scheme.

"Carbon business is not just about carbon trading. The carbon business can also raise the reputation of a company and increase its share values," she stated.

She added that companies aiming to enhance their reputation could participate in emission reduction initiatives, contributing to the country's climate objectives.

"Mr. President has said that many people want to be involved in the carbon economy and the most important thing about this incentive is the implementation design and practice. It is not easy to prepare it," she stated.

Previously, the ministry received a performance-based funding of US$56 million from bilateral cooperation with Norway for emission reductions in October 2022. A subsequent payment of US$100 million was made by Norway in December 2023, followed by a third installment of US$156 million completed last January. The fourth installment is currently pending, with completion anticipated within the year.

Additionally, the Green Climate Fund has provided US$103.8 million to mitigate 20.3 million tons of carbon dioxide equivalent (CO2e) emissions for the 2014-2016 period.

Negotiations are ongoing for funding from the JAMBI BioCarbon Fund for the 2020-2025 emission reduction period, and a US$110 million funding from the Kaltim FCPF Carbon Fund is aimed at reducing 22 million tons of CO2e for the 2019-2024 period.

ANTARA

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