Indonesia is committed to increasing the portion of renewable energy and gradually reducing the number of Steam Power Plants (PLTU) in operation to achieve carbon neutrality by 2060. However, the plan is estimated to require funds of up to US$ 1 trillion. To meet the need for this large budget, the government clearly needs to involve all parties, especially the private sector, including investors banks and companies. However, on the other hand renewable energy financing is facing the challenge of regulatory certainty. This session is presented to explore how opportunities can be maximized and find solutions to the challenges faced to achieve targeted financing.

Embracing Indonesia's New Carbon Economy

Carbon Project data places Indonesia in 10th place among the world's largest carbon emitters, with around 1.7% of total global emissions in 2020. A number of efforts are being made by the Indonesian Government to address this situation, including a plan to carry out carbon trading. Through carbon trading policies, the government seeks to involve the public and private sectors to contribute to reducing GHG emissions. In Indonesia, carbon trading is regulated in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK), specifically in Article 23 which reads: "Carbon trading is a market-based mechanism for reducing greenhouse gas emissions through the activity of buying and selling carbon units." . The Financial Services Authority (OJK) and the Coordinating Ministry for Maritime Affairs stated that the Indonesian carbon exchange would be launched in September 2023.

Achieving Net-zero emission or net zero emission is an effort that must be done by world leaders - in 2050 or sooner - to prevent the earth's warming boiling point from higher than 1.5°C. In this regard, the Government has issued Presidential Regulation No. 98/2021 concerning the implementation of Carbon Economic Value and GHG emission control to accelerate the achievement of the NDC target, which regulates the climate change control agenda, such as the energy transition by encouraging the use of environmentally friendly renewable energy sources. However, this commitment requires the active involvement of all parties, including the Indonesian government itself in implementing existing policies, the younger generation, and business actors.

Generation Net Zero: Trendsetters & Trailblazers

HAK CIPTA © 2023 - BERITA MEDIATAMA INDONESIA

* Speakers subject to availability and final confirmation

Chairwoman of Indonesia Employers Association (APINDO)

President Director of PT PLN (Persero)

Head of Center for State Income Policy of Fiscal Policy Board Ministry of Finance

Head of Business Development Division at Indonesia Stock Exchange

Institute for Energy Economics and Financial Analysis

Coordinating Minister for Maritime and Investment Affairs

Head of Integrated Financial Services Sector Surveillance and Policy Department, OJK

Vice CEO of PT TBS Energi Utama