2022 State Budget: Fiscal Policy and Structural Reform slide image

2022 State Budget: Fiscal Policy and Structural Reform

National Climate Financing GISONS 3065-04 13 PENAVEMAN PERUBAHAN KUV NET ZERO CO, EMISSIONS 2050 Funding support to achieve the targets of the climate agenda can come from the public, private and international sectors towards "a just and affordable transition" SOURCE OF FINANCING DOMESTIC _ INTERNASIONAL BILATERAL MULTILATERAL • Green Climate Fund ⚫ Global . Environment Facility Adaptation Fund ⚫ MDBs ⚫ IFIS CHALLENGES AHEAD, ESPECIALLY DUE TO THE COVID-19 PANDEMIC Limited fiscal space Strengthening the fiscal reform agenda and fiscal consolidation will be the key to fiscal sustainability onward. Optimal mobilization of non-state budget climate change funding sources. Ensure that the economic recovery and transition to a green economy is Just and Affordable. Strengthen the viability of green projects so that they can be financed by the financial sector and receive international support. The current market mechanism has not been able to reflect the price difference between the Green and non-Green sectors. Currently, it is still limited to Green Financing, it is necessary to strengthen Greening the Finance in order to support the sustainable development agenda. STATE BUDGET Carbon Tax/Excise • Central Government Expenditure • TKDD Expenditure • Financing (Green Sukuk, SDGs Bond) NON-STATE BUDGET Carbon Trading • Private Investment and • CSR BPDLH SDG Indonesia One • ICCTF ⚫ Financial Services sector (Bank and Non Bank) • Capital market Philanthropy • State Owned Enterprises • Government • Private Source: Ministry of Finance 106
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