W

e hope the two-day green investment Tropical Landscape Summit ending today will not turn out simply to be another talking shop that keeps repeating the threats of greenhouse gas emissions (GHG) and global warming but without any serious commitment to enhancing the green economy.

In early 2010, the government announced a plan to set up a US$1 billion green investment fund to drive infrastructure developments that aided growth and helped cut GHG emissions by at least 26 percent from '€œbusiness as usual levels'€ by 2020. Earlier in 2009 Indonesia also became the first country to launch a legal framework for a UN-backed scheme called Reducing Emissions from Deforestation and Degradation (REDD), allowing polluters to earn tradable carbon credits by paying developing nations not to chop down their trees.

But almost five years down the road, we have seen no significant progress in those grand plans.

We are even worried because President Joko '€œJokowi'€ Widodo has vowed to boost annual economic growth to 7 percent and even higher. Without a serious commitment to green investment, this ambition could threaten the environmental sustainability of Indonesia'€™s economy.

Worse still, the government still heavily subsidizes fossil fuels, making investment in renewable energy sources commercially unattractive. Also worrying is that coal-fired power generation remains central to the national electricity development program, which will add 35,000 MW in additional capacity within the next five years.

There seems to be no sense of urgency at all to align demand for energy with sustainability prerogatives by developing a comprehensive strategy for renewable energy that lays the foundations for human and environmental wellbeing well into the future. The development of palm oil-based biodiesel, which was launched in 2006, is acutely short of supporting policies.

We nevertheless hope this summit will still be able to convey a stronger, more urgent message. With an estimated 87 percent of the Indonesian GHG emission reduction target to be achieved in the forestry and peat land sector, business strategies in these sectors need to adapt rapidly to innovation to drive forward and consolidate progress.

As such, the participation of hundreds of chief executive officers, especially those engaged in forestry, mining and plantations, in the Tropical Landscape Summit will hopefully be able to convey a stronger, more urgent message.

Indonesia is indeed uniquely placed to shape and push the global shift toward a green economy, as its rich natural resources, especially its vast tropical forests and minerals, and favorable demographics provide huge opportunities for businesses. But at the same time, the protection of its environment is also vital for the global ecological balance.

Many technology providers and project sponsors do not have the balance sheet to top up the required equity needed to secure financing. The government should therefore step in and play a catalyst role to ensure good projects, with good asset quality, expertise and proper management, can be deployed and proceed.