The achievement of sustainable development targets continues to be a top priority for the government as part of its efforts to address global climate issues through the implementation of a green economy. According to Secretary of the Coordinating Ministry for Economic Affairs, Indonesia's commitment to supporting sustainable development is also reflected in the increased targets for reducing Greenhouse Gas (GHG) emissions in the National Determined Contributions (NDC), achieved through domestic efforts, have raised 2.89%, while with international support have increased 2.20%.
The government's commitment is manifested through various efforts, including strengthening private sector collaboration, promoting innovative financing through the establishment of a Sovereign Wealth Fund, enacting the Omnibus Law on Job Creation while considering environmental dimensions, and contributing to the Just Energy Transition Partnership by launching a Comprehensive Investment Plan worth USD 20 billion. Furthermore, the government also provides tax exemptions and allowances, customs duty exemptions, reduction of Value Added Tax (VAT) and luxury goods tax, implementation of tax rates based on CO2 emissions and fuel consumption to accelerate the renewable and environmentally friendly energy business sector. It is also emphasized the important role of government audit institutions in ensuring the effective utilization of financing to drive affordable, reliable, and sustainable clean economic transitions.
