Indonesian government is preparing an initial fund of Rp2.1 trillion for the Environmental Fund Management Agency which was officially launched today (October 9). The funds will be used in the fields of forestry, energy and mineral resources, carbon trading, environmental services, industry, transportation, agriculture, marine, and fisheries.
“The initial balance of the agency’s principal fund is Rp2.1 trillion and with a cumulative commitment of Rp2.2 trillion, so we need to add new managed funds which we will later combine,” Finance Minister Sri Mulyiani Indrawati told reporters in Jakarta.
The minister explained the mainstreaming of climate change issues in the national development program has been and will continue to be carried out so that environmental and climate change issues are expected to be part of national development planning and implementation.
“Based on climate budgeting tagging conducted by Finance Ministry, there was an increase in state budget support in national programs related to climate change issues, amounting to Rp72.4 trillion in 2016 (3.6%), Rp95.6 trillion in 2017 (4.7%) and Rp109.7 trillion in 2018 (4.9%),” she noted.
Indrawati went on by saying that the government has a target in achieving its commitment to reduce emissions in the Nationally Determined Contribution of 29% on its own and 41% with international support.