Jakarta (VNA) – The World Bank (WB) supports the Indonesian government's endeavors in recovering the economy from the impact of the COVID-19 pandemic while still addressing the issues related to climate change.

The past two years have been challenging, as the pandemic has caused health, economic, and social crises around the world, including in Indonesia, World Bank Country Director for Indonesia and Timor-Leste Satu Kähkönen said at a business forum on March 29.

According to Kähkönen, the Indonesian government's efforts have been extraordinary, and it has successfully coordinated health resources and social assistance across the country to overcome the pandemic.

Indonesia's economy has passed through the crisis better than other economies in the world, thanks to its clever macroeconomic management, she remarked. Now, the focus is shifting to supporting economic recovery and tackling climate change, she said.

Climate change is a challenge that will determine the conditions in 2030, according to Kähkönen.

Meanwhile, Indonesia aims to reduce greenhouse gas emissions by 26 percent by 2030 through its own efforts and by 41 percent if it is supported by the international community. Indonesia is also striving to achieve net-zero emissions by 2060 or sooner and is preparing for a transition in the energy sector.

Kähkönen noted that between 2016 and 2021, several important increases in private investment were recorded in Indonesia, with 23 ways of approach in the form of public-private partnership, with the value amounting to almost 13.25 billion USD.

According to Kähkönen, reforms are required to harmonise regulations to accelerate climate-smart development./.