Gov’t Establishes Environmental Fund Management Agency
In accordance with Government Regulation Number 46 of 2017 on Environmental Economic Instruments and Presidential Regulation Number 77 of 2018 on Management of Environmental Funds, the Indonesian Government on Wednesday (9/10) established the Environmental Fund Management Agency (BPDLH).
The BPDLH, which is scheduled to start its operation on 1 January 2020, will be tasked to manage funds related to forestry, energy and mineral resources, carbon trading, environmental services, industry, transportation, agriculture, marine and fisheries, and other fields related to the environment.
The funds were was scattered at several ministries and institutions through various programs.
“This agency is a Public Service Agency (BLU) under Ministry of Finance. The agency’s management is carried out professionally and involves various ministries/institutions across sectors. The public can make the most of this agency,” Coordinating Minister for the Economy Darmin Nasution said during the launching of the BPDLH in Jakarta, Wednesday (9/10).
The agency, Darmin continued, is designed to encourage financing in the environmental field and is also expected to ensure sustainability of environmental protection and management.
“We hope the agency can uphold the principles of transparency and accountability in managing its funds, and will follow global governance standards,” Darmin said.
The Minister went on to say that the Government has managed various funding sources, both domestic and foreign funds, which support environmental management and protection. However, he added, the existing funding supports have not optimally reached the expected targets.
Darmin also expressed hopes that the BPDLH can collaborate with various sides and development partners to develop itself and to explore other sources of funding.
Meanwhile, Minister of the Environment and Forestry Siti Nurbaya Bakar stated that the establishment of this agency is a concrete step for Indonesia to step up efforts to control and handle climate change.
“Our steps in implementing the Paris Agreement are increasingly getting concrete. The BPDLH or what I also call the LH Fund (Environmental Fund), is expected to provide systematic space and positioning in controlling and managing climate change,” she said.
In the meantime, Ministry of Finance Sri Mulyani stressed that her ministry would continue to support the implementation of the BPDLH with good governance and maximum efficiency. (Coordinating Ministry for the Economy PR/ES)
Translated by : Fairuzzamani Inayatillah
Edited by : Estu Widyamurti, M. Ersan Pamungkas