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Private Sector Await More Aggressive Government Policy in Achieving Net Zero Emission
Private Sector Await More Aggressive Government Policy in Achieving Net Zero Emission
Friday, 30 September 2022

Jakarta, 29 September 2022 - Currently, the world is still facing a climate crisis. Indonesia has ambitious commitments in its NDC to reduce carbon emissions by 29 percent and 41 percent with international assistance by 2030. Indonesia needs to have a solid low-carbon development policy framework in place to achieve this target.

“The main challenge for Indonesia is implementing policies and reforms. To achieve this target, we need transformative investments, especially in the IPPU, Forest and Other Land Uses, and Energy sectors,” said World Bank Managing Director of Development Policy and Partnerships, Mari Elka Pangestu in the B20 Side Event webinar by the Joint Trade & Investment Task Force] ICDX with "Indonesia's scenario to achieve net zero".

Achieving Net Zero Emissions will require transformative changes in carbon pricing, cleaner energy, and a green economy. Carbon pricing is believed to be an efficient instrument, capable of providing incentives for emission reduction and elimination, encouraging behavior change, technological innovation, and investment decisions.

In realizing Net Zero Emission, of course, systematic and targeted planning is needed. It takes a scenario that can be a reference for the government to deliver Indonesia to achieve the predetermined Net Zero Emission target.

“Bappenas is exploring various scenarios to achieve Net Zero Emission in three different times, namely 2045, 2050, and 2060. Bappenas has launched a platform that functions to simulate a low carbon policy scenario covering three sectors, namely Energy, IPPU, and FOLU. To achieve Net Zero by 2045," continued the Director of the Environment, Bappenas, Medrilzam in the same webinar.

From the energy sector, Pertamina is committed to helping the government achieve the Net Zero Emission target by developing the potential of renewable energy that is better and also environmentally friendly.

“Pertamina is committed to developing new and renewable energy with a capital cost allocation of 14% of the total long-term budget. This value is more aggressive than other energy companies with an average NRA cost of capital of 4%," said PT Pertamina's Corporate Secretary, Brahmantya S. Poerwadi.

Indonesia is known as the world's lung country due to its vast forest area which reaches 125.82 million hectares. Forests themselves are an important aspect to reduce carbon emissions, following the goals of Net Zero Emissions set by the government. Asia Pulp & Paper as a company engaged in the production and marketing of paper that directly utilizes forests is committed to supporting the government in achieving the Net Zero Emission target by rebuilding Indonesia's forestry conditions for the better.

“There are three pillars promoted by Asia Pulp & Paper to support the Net Zero Emission target, namely Production, Forest, and People. However, to support the pillars and also answer all the challenges that exist, there needs to be a collaboration between business actors, the government, as well as policies that are aligned and support other stakeholders to achieve the Net Zero Emission target," said Chief Sustainability Officer Asia Pulp & Paper, Elim Sritaba.

Meanwhile, from the IPPU and waste management sectors, Danone is committed to helping the government achieve the Net Zero Emission target by creating recycled products that can have an impact on solving waste problems in Indonesia to create a good environment and climate.

“To preserve a healthy planet, Danone focuses on four natural pillars, namely Climate, Water, Circular Economy, and Agriculture. We are determined to fight climate change by becoming a carbon neutral company by 2050, protecting and valuing water as an important resource, using 100% recycled plastic for our products, and encouraging regenerative agricultural practices that protect the soil,” said the Director of Sustainable Development of Danone Indonesia, Karyanto Wibowo.

In carrying out the predetermined Net Zero Emission scenario, of course, there are challenges. Therefore, the government cannot run alone. Assistance and support from various aspects and sectors are needed so that Indonesia can achieve these targets.

“Many people want to change their behavior but do not get support from the existing infrastructure or it is not available so support is needed on how the government makes a regulation that can encourage a green economy. It is very important for us to work together with the government to achieve this target,” concluded Commissioner of the LCDI & Member of the Green Caucus of the Indonesian Parliament, Dyah Roro Esti.

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