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Indonesia needs to be more ambitious in saving environment: OECD
In February, the government issued green sukuk (sharia-compliant bonds) worth US$750 million in line with its commitment to environmentally friendly green financing.
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Forest in Mimika, Papua. (Antara/M Agung Rajasa)
W
hile the country had made some progress in integrating environmental issues in its policy, Indonesia needed to be more ambitious to achieve its environmental and climate targets in order to save the planet and keep economic development high, the Organization for Economic Co-operation and Development (OECD) said in its latest report.
During the recent launch ceremony of the organization’s latest report titled OECD Green Growth Policy Review of Indonesia 2019, OECD environment director Rodolfo Lacy said Indonesia’s economy was “more inclusive and sustainable than ever.”
The report, the first of its kind, aims to review Indonesia’s policy framework for green growth while also examining the state of the country’s environment and green growth performance since 2005. The OECD was assisted by several institutions in writing the report, including the Environment and Forestry Ministry and the National Development Planning Agency (Bappenas).
“Indonesia has made progress in decoupling environmental versus economic growth. Between 2005 and 2016, greenhouse gas emissions and energy supply have grown at a slower pace [than the country’s] gross domestic product [GDP]. That is a good sign,” Lacy said recently.
Such progress, he added, took form in the next National Medium-Term Development Plan (RPJMN) which included low-carbon development principles. The paradigm focuses on the construction of sustainable infrastructure as well as the protection and restoration of natural infrastructure, such as wetlands and forests. Moreover, the low-carbon development also requires resources and energy efficiency.
He also mentioned a green bond issued by the government in order to push for green investment. In February, the government issued green sukuk (sharia-compliant bonds) worth US$750 million in line with its commitment to environmentally friendly green financing. It marked the second time the government had banked on the global sukuk market after it became the first sovereign green sukuk issuer last year, raising $1.25 billion.
The country’s GDP grew more than 5 percent annually in the 10-year period. It was later followed by a reduction in the poverty rate by half as well as an increase in living standards and access to public services.
