Indonesia launches agency to oversee environment funds

Indonesia has recently established an office to oversee climate change management funds as a portion of its endeavors to meet its objectives in fighting climate change.

The Environment Fund Management Body, directed by the Financial Ministry, is expected to deal with the natural assets to guarantee the viability of exercises to protect the earth and minimize carbon emissions.

In a news report, Director General of climate change at the Environment Ministry Ruanda Agung Sugardiman said the objective is to have a pool of needed funds for environmental recovery.

Indonesian Coordinating Minister for the Economic Affairs Darmin Nasution said in his remarks that the agency would apply responsible and ethical standards in its operations.

The budget will originate from fines that the government collects from environmental crime cases, land reclamation payments, and local international aid.

According to a news report, Finance Minister Sri Mulyani Indrawati said the agency can conceivably raise Rp 800 trillion (US$ 56 billion) in environment assets.

"With the establishment of this agency, we hope that donor countries and institutions will be more confident in committing to provide environmental funds," she said.

The minister clarified that the mainstreaming of environmental issues in the national development plans has been and will keep on being completed. The goal of natural and climate change issues is expected to be a part of the government's planning and development, she added.

Indrawati noted there was an increase in the budget allocated to national programs related to climate change issues. She said it amounted to Rp72.4 trillion (US$5.1 billion) in 2016, Rp95.6 trillion (US$6.8 billion) in 2017, and Rp109.7 trillion (US$7.74 billion) in 2018.

Indrawati continued by saying that the government has an objective in accomplishing its duty to minimize emissions in the Nationally Determined Contribution of 29% from its funding and 41% with international aid.

Thus, the administration's responsibility to ecological security and the management is acknowledged through the measure of the financial budget appropriated for environmental management.

Likewise, subsidizing from developed nations associated with ecological protection and management grows in line with the need for environmental funding in developing countries in line with the implementation of the Paris Agreement.

Indrawati said they need to maintain and develop a strategy for how Indonesia can grow and how poverty is tackled. She likewise underscored that equitable development occurs in the whole country.

The Indonesian government expects to prepare guidelines that will enable the country to begin a carbon trading program that the organization could handle, although there is no timeline provided yet, Sugardiman stated.

The budget from the agency would be provided through investments or grants to prevent ecological damages and educate communities to prevent harm.

Environment and Forestry Minister Siti Nurbaya Bakar said the agency could expedite public service assistance operations for forest development financing.

Bakar added there is no plan for sharing the level of assets diverted for ecological and forestal recovery.

The Indonesian government said in 2017 that they need US$64 billion between 2016 and 2020 for climate adaption and extra $17 billion for environmental change alleviation endeavors.

Environment Fund Management Body will start its operation on January 01, 2010 and will have an initial budget worth Rp 2 trillion (US$141 million).