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View all search resultsDespite the general pullback trend in sustainable finance and early signs of saturation, more flexible instruments like SLLs present better resilience as the broader energy transition investment landscape moves toward selectivity, and this juncture of strategic adjustment is where Indonesian banks come in.
Despite setbacks, sustainability initiatives will likely continue, driven by investor and consumer pressure which put environmental, social,and governance (ESG) concerns as priority, and long-term economic benefits like energy efficiency and renewable energy sources continue to be proven cost-effective, thus making sustainability initiatives attractive.
The energy and mineral resources minister has said the government will not intervene in lowering the cost of financing and that downstream projects could bring a much earlier break-even point and better returns than other projects.
PT SMI has provided US$23.3 million (Rp 347.5 billion) in funding to PT NTBE to support the development of a floating solar panel project in Batam. The 46-megawatt peak solar power plant is the second-largest floating solar project after Cirata.
The focus of this year's UN Climate Change Conference is financing; specifically, setting an annual amount and devising an integrated sourcing scheme to ensure that the burden of addressing climate vulnerabilities does not fall on countries in the Global South, which contribute just one-tenth of global emissions.
Indonesia may have made a poor showing by sending low-ranking officials to COP16, but seeing as the President's brother is leading the delegation to COP29 later this month, this could be a sign that the government is finally getting serious about the country's positioning on global climate issues.
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