{
    "success": true,
    "data": {
        "id": 1835350,
        "msgid": "climate-change-shaping-investment-trends-finance-ministry-1782924608",
        "date": "2026-07-01 10:48:40",
        "title": "Climate change shaping investment trends: Finance Ministry",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Finance",
        "summary": "Indonesia's Finance Ministry has warned that climate change is increasingly driving global investment decisions, with transition and physical risks threatening economic productivity and financial stability. The government has integrated sustainability goals into its Asta Cita vision, but state budget allocations have covered only 12.9 percent of climate mitigation needs, leaving an annual financing gap of Rp73.5 trillion. To bridge this shortfall, the ministry is pursuing innovative financing instruments and deeper partnerships with the private sector and international agencies to support the country's ambition of becoming an advanced economy by 2045.",
        "content": "<p>Jakarta (ANTARA) - Climate change is increasingly dictating global\ninvestment decisions as investors reckon with the transition and\nphysical risks it brings, according to the Acting Director General of\nFinancial Sector Stability and Development of the Finance Ministry,\nHerman Saheruddin.<\/p>\n<p>He stated that those transition risks rise as countries race to adopt\ngreen technologies, enforce stricter carbon regulations, and shift\nconsumer preferences toward sustainable products.<\/p>\n<p>\u201cThese developments affect investment decisions, trade\ncompetitiveness, financing needs, fiscal revenues, and ultimately\nfinancial sector stability,\u201d Herman Saheruddin said here on Tuesday.<\/p>\n<p>Meanwhile, the physical threats of climate change include floods,\ndroughts, rising sea levels, and extreme weather which disrupt\ninfrastructure development, agricultural yields, and economic\nproductivity.<\/p>\n<p>\u201cFor Indonesia, the economic consequences are significant. Climate\nchange could generate substantial economic losses while reducing labor\nproductivity if no meaningful action is taken,\u201d he noted.<\/p>\n<p>In response to these challenges, the Indonesian government has\nintegrated global sustainable development goals into its national agenda\nthrough Asta Cita \u2013 the government\u2019s eight-point strategic vision.<\/p>\n<p>The framework moves beyond raw economic growth to prioritize national\nresilience, market competitiveness, environmental sustainability, and\nequitable development.<\/p>\n<p>Thus, fiscal policy will play a strategic role in mobilizing green\ninvestments, securing food, energy, and water resources, and fostering\ninnovation for future industries, Herman added.<\/p>\n<p>However, the government acknowledges that state funds alone are\ninsufficient to meet the country\u2019s climate commitments.<\/p>\n<p>Between 2018 and 2024, the national state budget (APBN) covered just\n12.9 percent of the total funds needed for climate mitigation. This\nleaves a massive 87.1 percent financing gap, with Indonesia requiring an\naverage of Rp73.5 trillion in climate spending annually.<\/p>\n<p>To bridge this shortfall, the Ministry of Finance is working to\nexpand innovative financing instruments and strengthen partnerships with\nthe private sector and international development agencies.<\/p>\n<p>\u201cUltimately, sustainable finance is not merely an environmental\ncommitment. It is a very important instrument for delivering Indonesia\u2019s\nvision of becoming an advanced economy by 2045,\u201d Herman stated.<\/p>\n<p>Related news: Indonesia, Brazil highlight TFFF as key climate funding\nmodel<\/p>\n<p>Related news: Indonesia boosts climate finance via multi\u2011scheme\ncarbon value<\/p>\n<p>Related news: Indonesia to champion climate finance, leadership at\nCOP30<\/p>\n<p>Climate change shaping investment trends: Finance Ministry<\/p>\n<p>July 1, 2026 10:41 GMT+700<\/p>\n<p>Acting Director General of Financial Sector Stability and Development\nof Finance Ministry Herman Saheruddin delivers his speech at Maybank\nIndonesia Sustainable Finance Forum 2026 in Jakarta on Tuesday (June 30,\n2026).<\/p>\n<p>Translator: Uyu Septiyati Liman<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/climate-change-shaping-investment-trends-finance-ministry-1782924608",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}