Accelerating Energy Transition, Government Targets to Build 1 Million Green Houses by 2030

The Ministry of Public Works and Public Housing (PUPR) and the Ministry of Finance (MoF) invite all stakeholders to collaborate in realizing green housing financing to accelerate a fair and affordable energy transition.

The government targets 1 million green homes to be built by 2030 and 100% carbon emission-free homes to be realized by 2050.

The plan, which uses blended finance Indonesia Green Affordable Housing Program (IGAHP), will collaborate with PT Sarana Multigriya Finansial (Persero) or SMF.

Through the ASEAN Chairmanship forum, Developing Energy Efficient Mortgage in ASEAN Region held by the Fiscal Policy Agency of the Ministry of Finance and SMF, Sri Mulyani hopes that all stakeholders can develop a regulatory policy framework to instruments in realizing green housing finance in Indonesia.

The development of green housing finance is one of the solutions for Indonesia to reduce the risk of global climate change because it is an innovative financial instrument that is aligned with the goals of addressing climate change and sustainability.

President Director of PT SMF, Ananta Wigoyo revealed that green housing financing is a new thing in Indonesia and needs to learn from friendly countries that have implemented it.

"Therefore, on this occasion we can listen to the experiences of our friends in Europe and Japan, because they have implemented this first," said Ananta.

On the other hand, the Government has officially launched the Energy Transition Mechanism (ETM) Country Platform, which is a form of coordination and mobilization to encourage a just and affordable transition in Indonesia for the energy sector.

Through this initiative, Indonesia is optimistic that it can reduce around 50 million tons of carbon emissions by 2030 or 160 million tons by 2040.

The ETM platform demonstrates Indonesias readiness to catalyze large financial resources in a reliable and affordable energy sector. This effort will be done in line with maintaining economic growth.