The ministry develops innovative instruments for environmental protection

Jakarta (ANTARA) – The Ministry of Environment and Forests is developing innovative financing instruments such as sukkuk or Sharia-based obligations for environmental protection and management.

“In addition to strengthening fiscal policy through the public sector, we are also encouraging the development of innovative financing instruments,” Climate Change Control Director General Laksmi Dhewanthi told a STOCKHOLM virtual town hall. +50, accessible from here Monday.

Several financing instruments and institutions have been developed to support environmental protection and management such as the sukkuk and the Environment Funds Management Agency (BPDLH), Dhewanthi pointed out.

In addition, she said, innovative environmental finance is also being encouraged by increased interest from private investors and improved access to global finance for Indonesia.

“Currently each convention has a funding mechanism and there is a lot of access to global funding that can be tapped,” Dhewanthi said.

Furthermore, strategies should be combined not only by the government but also by all stakeholders, she added.

Efforts to conserve and manage the environment as well as to achieve the Sustainable Development Goals must be led by all parties, she said.

“I hope that we can all continue to collaborate, to work together to be able to mobilize various types of resources that we must use to achieve these goals,” Dhewanthi added.

The importance of resource mobilization to encourage sustainable development was also highlighted by the Minister of Environment and Forests, Siti Nurbaya Bakar, opening the discussion.

“Indonesia has become the first country in the world in which the government has issued Islamic bonds in the form of green bonds sukkuk to finance adaptation to climate change. The business community with CSR (corporate social responsibility) also mobilizes support for the preservation of nature and society,” Bakar remarked.

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