Jakarta (Indonesia Window) – Indonesia needs at least 3,500 trillion rupiahs (about 245.6 billion U.S. dollars) to reduce carbon emissions from the energy and transportation sectors by 2030.

The sector-based climate change mitigation fund is needed for Indonesia's commitment to reduce carbon emissions by 29 percent with own efforts and 41 percent with international assistance, Deputy Minister of Finance Suahasil Nazara said during the IAI sustainability roundtable discussion here on Tuesday (Nov. 16).

The estimated cost of 245.6 billion U.S. dollars is used to reduce emissions in the energy and transportation sectors by 314 Mton (million tons) of CO2e in order to achieve the emission reduction target according to the Nationally Determined Contributions (NDC) of 29 percent with own efforts.

In the NDC document, Indonesia is also committed to reducing greenhouse gas (GHG) emissions by up to 41 percent or 446 Mton CO2e through international supports by 2030.

Suahasil explained that the cost would be used to compensate existing fossil fuel-based plants converting to renewable energy-based plants.

In addition to the energy and transportation sectors, he pointed out, climate change mitigation in the forestry sector also costs 93.28 trillion rupiahs (about 6.5 billion dollars) from 2020 to 2030.

These costs are used to reduce emissions in the forestry sector by 497 Mton CO2e and 692 Mton CO2e according to the NDC emission reduction target of 29 percent and 41 percent targets respectively.

Reporting by Indonesia Window