Jakarta. The ongoing climate summit COP26 in Glasgow, Scotland, is calling for a multistakeholder collaboration to fund and implement the ambitious emission reduction goals.
Globally, the United Nations Environment Programme (UNEP) has estimated that it will require $100 billion for climate finance, at least.
According to Finance Minister Sri Mulyani in a recent discussion with Asia House, Indonesia’s green energy transition needs at least about $5.7 billion a year in funding.
At a COP26 session themed ‘Becoming the World’s Leader in Green Economy: Leading in NDC Implementation’, the Forestry Deputy Minister Alue Dohong underscored the private sector’s pivotal role in helping the country slash its greenhouse gas (GHG) emissions.
Under its nationally determined contribution (NDC), Indonesia aims to cut its GHG by 29 percent on its own or 41 percent with international assistance by 2030.
“To achieve the GHG emission reduction target, the Indonesian government realizes that support from all stakeholders is very important, particularly from the private sector and state-owned companies,” Alue said.
Alue highlighted the UNEP Green Economy Report, which said the implementation of green economy concepts must take place effectively and fairly, while also assuring a just transition to low-carbon, resource efficient, and socially inclusive economies.
“The role of the private sector should include addressing the adaptation of vulnerable communities and contributing to planning development and implementation of climate adaptation strategy through sector specific expertise by financing, technology efficiency, and entrepreneurship,” he said.
Also attending the same session was Royan Golden Eagle (RGE), a resource-based conglomerate with operations in Indonesia. RGE managing director Anderson Tanoto spoke about how APRIL Group has invested heavily in recent years to support climate mitigation and sustainable development.
APRIL launched its APRIL2030 commitments and targets last year, which include a significant focus on addressing climate change and emissions reduction.
By 2030, APRIL Group has committed to achieving net zero carbon emissions from land use and reducing the intensity of carbon production by up to 25 percent. It has also committed to zero loss of protected forest areas across its operations in Riau province, in Sumatra.
“With APRIL2030, we are building on the commitments embedded in our Sustainable Forest Management Policy 2.0 and on the progress we have made in implementing our sustainability strategy over the last five years. One key aspect of this strategy will be solar energy. We have already begun installing solar panels at our operations in Sumatra. Once completed in 2025, this will be one of the largest solar panel installations by a private sector in Indonesia,” he said.
Another key element of addressing climate change is forest protection and restoration. Mr. Tanoto highlighted the impact of APRIL Group’s forest ecosystem restoration program, Restorasi Ekosistem Riau (RER).
The RER is made up of approximately 150,000 hectares of peatland forest on the east coast of Sumatra, an area about the size of London.
“Biodiversity is absolutely critical. We cannot only look at carbon without biodiversity and biodiversity without carbon. These two elements have to come hand in hand. We believe the RER restoration project combines these two elements together,” he said.
APRIL Group is also supporting the Environment and Forestry Ministryin developing a modern nursery in Rumpin, Bogor, close to Jakarta.
Once fully operational, the nursery will provide 12 million seedlings for Indonesia’s national reforestation and restoration efforts, particularly in disaster-prone areas.
APRIL is working with the government through a Public-Private Partnership (PPP) where the company provides its knowledge in managing a large scale modern nursery, similar to its facility in Sumatra, which was visited by President Jokowi in Riau last year.
“We hope this PPP can be the beginning of many other partnerships with the government, not just for APRIL but for other private sector operations also,” Tanoto said.
The session also showcased how the Indonesian private sector is preparing for the challenges and opportunities that may arise from climate change.
“With the strong collaboration between the public and private sectors, and of course international parties, we can build a resilient green economy for the future of Indonesia,” Arsjad Rasjid, chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said.
Sustainable economic development in Indonesia could result in potential value creation of up to $200-250 billion in some areas, such as bio-economy, renewable power and waste management, he added.