The Government of Indonesia requires around USD243 billion to reach its Nationally Determined Contribution (NDC) target to reduce carbon emissions to 29 per cent by 2030. These resources will be used to increase the share of electricity generated from green and renewable energy sources.
The funding will be sourced through the federal budget as well as the private sector, although international financing will play a major role.
To reach its NDC target, the country’s energy sector will need to offset its carbon emissions from operations that as of today amounts to approximately 314 million tons. Currently, the industry is the second highest sources of pollution in Indonesia. The government is also preparing guidelines for a carbon tax that will provide incentives to businesses who manage to reduce carbon emissions.
