Green Investment: Predicted 1.66 Million Jobs to be Created per Year

Medrilzam, Director of Environment at the Ministry of National Development Planning (Bappenas), estimates that green investments will create millions of jobs per year in the future.

Medrilzam revealed that 1.66 million potential jobs will be created from green investments per year by 2045.

In addition, from 2025 to 2045, an average investment amount of Rp2.377 trillion rupiah per year is needed.

This was revealed in a seminar entitled "Bridging the Cross-Sectoral Gap in Pursuing More Ambitious Climate Targets in Indonesia", Thursday (10/8/2023).

"To meet these needs, policies are needed that lead to strengthening green innovative financing, such as blended finance, impact investment, carbon tax, and others," he said.

He also said that green economic interventions with low-carbon development will increase the carrying capacity of the environment and potentially reduce greenhouse gas (GHG) emissions along with encouraging Indonesias average GDP growth in 2022-2045 to reach 6 to 7 percent.

Junior Expert Policy Analyst at the Center for Climate Change and Multilateral Financing Policy, Fiscal Policy Agency, Ministry of Finance Ferike Indah Arika emphasized the need for innovative financing in addition to the state budget for climate mitigation and adaptation efforts.

She revealed that the accumulated funding for climate change mitigation needed in the range of 2018-2030 reached Rp4,002 trillion, this amount is still much smaller than the investment needs for green economy policies.

"This large imbalance of funding needs, of course, cannot only be met by the limited state budget," said Ferika.

Associate Expert Policy Analyst at the Directorate of Energy Conservation of the Ministry of Energy and Mineral Resources Nurcahyanto also said that the energy sector is trying to cut GHG emissions.

Ending the operation of coal-fired power plants is one of the efforts to accelerate the reduction of GHG emissions from the energy sector.

"The plan is for 4.8 gigawatts (GW) of coal-fired power plants to be retired early by 2030," Nurcahyanto said.

The draft roadmap for the early retirement of PLTU operations in 2030 has been finalized and submitted to the Coordinating Ministry for Maritime Affairs and Investment (Kemenkomarves), the Ministry of Finance, the Ministry of BUMN, and PT PLN for responses.