ASEAN KEY DESTINATIONS
RI to host conference on green investment
Indonesia will host an international conference at the end of April to attract investment that will facilitate the country’s transition into a green economy and ensure a sustainable future.
Titled “Tropical Landscape Summit: A Global Investment Opportunity”, the meeting will draw around 500 top business executives from national as well as international companies on April 27 and 28 in Jakarta.
President Joko “Jokowi” Widodo is slated to officially open the event with multi-stakeholder engagement hosted by the Indonesian government in collaboration with the UN Office for REDD+ Coordination in Indonesia (UNORCID).
Investment Coordinating Board (BKPM) head Franky Sibarani said Tuesday the summit would provide a platform for the government to promote its vision on green investment as well as to gain input from various stakeholders to sharpen its development programs in the future.
It would also help attract so-called “green investment” to the nation to contribute to its economic growth.
From 2010 to 2014, realized investment in eight business sectors that the board categorized as “green investment”, such as agriculture, forestry, fisheries and waste management, totaled Rp 139.17 billion from domestic firms and US$26.8 billion from foreign investors, a level which Franky described as “still low”.
“We want the investment figure to surge by 20 percent in the future and its achievement can only be supported by incentives,” Franky said during a press briefing.
He further said the government would announce a set of incentives to stimulate green investment during the summit, including tax allowances, but did not elaborate further.
Another area of investment that it aims to promote is power generation using renewable energy sources, such as solar cells and streams of water, according to Franky.
Indonesia, Southeast Asia’s biggest economy, is accelerating its efforts to generate much-needed electricity to power households and industry through a 35,000 megawatt power project within five years until 2019.
While it has several alternatives to drive power generation through environmentally friendly methods, the enormous potential is still untapped. For instance, Indonesia is estimated to have a geothermal resource base that represents 40 percent of the world’s reserves. However, a number of issues, from legal certainty to high financial risks, are still hampering efforts to benefit from the huge amount of reserves.
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