LocationsStrengthening International Partnership to Advance Indonesia’s Climate Finance
April 10, 2025
UNDP and IEF hosted a high-level discussion on Indonesia’s climate finance achievements, featuring insights from key stakeholders, including the Minister of Forestry, Vice Minister of Environment and international ambassadors
Jakarta, 18 March 2025 – UNDP in partnership with Indonesian Environment Fund (IEF) organized Indonesia’s Climate Finance Journey: Achievements, Challenges, and Future Prospects to advance Indonesia’s Climate Finance and present the success stories of REDD+ Result-Based Payments.
The meeting took place in a historical building Alexander Andries Maramis (AA Maramis) of The Ministry of Finance in Central Jakarta. Welcoming high-level officials and foreign country representatives were Indonesia’s Minister of Forestry, Raja Juli Antoni, Executive Director of Indonesian Environment Fund, Joko Tri Haryanto, and Vice Minister of Environment, Diaz Hendropriyono.
Ambassadors, international representatives and key policymakers attended the High-Level Iftar Meeting that took place at AA Maramis of the Ministry of Finance, one of Indonesia’s historical buildings in Jakarta
Climate Finance has played an important role in supporting Indonesia’s efforts and strengthening infrastructure to tackle climate challenges, including through REDD+ (Reducing Emissions from Deforestation and forest Degradation) Result-Based Payment. Over the past decade, Indonesia has been utilizing REDD+ instruments to improve its forest management, maximizing its role to increase the world’s carbon stock. This REDD+ Result Based Payment is emphasized on performance, sustainability and disbursement of benefits.
UNDP Resident Representative, Norimasa Shimomura, met with Vice Minister of Environment, Diaz Hendropriyono, Executive Director of IEF, Joko Tri Haryanto, Ambassador of Finland, Pekka Kaihilahti, Ambassador of Norway, Rud Krüger Giverin, and Country Director of KfW to Indonesia, Burkhard Hinz.
The forestry and other land use (FOLU) sector plays an important role in overall strategy to reduce greenhouse gas (GHG) emissions, with this sector projected to contribute almost 60% of the achieving target. Indonesia became the first country in the Asia-Pacific region to receive USD 103.8 million from the Green Climate Fund. This fund was awarded for Indonesia’s achievement in reducing emissions by 20.25 million tCO2eq, or 13.8% of total emissions from the forestry sector in 2014-2016.
Indonesia’s Minister of Forestry, Raja Juli Antoni, addressed the commitment to make Indonesia a major source of global carbon offset solutions.
In his opening speech, Indonesia’s Minister of Forestry, Raja Juli Antoni, shared to the honourable guests about Indonesia’s commitment to achieving net-zero emissions (NZE) from the forestry sector within the next five years. With the support of international funding and National’s Budget, Indonesia succeeds to make significant progress in reducing greenhouse gas (GHG) emissions from the forest sector.
Indonesia has the potential to become a major source of global carbon offset solutions. To achieve this, he seeks to prioritize to strengthen policy and program development, fostering strong forest consolidation and management, and investing in robust monitoring system, while also working towards ambitious digitalization goals to ensure public transparency and aiming to improve overall forest governance. To reach this target, he addressed the urgency to mitigate the risks and sought for support to succeed his plan.
“It is crucial to recognize that the sector’s ability to maintain a net sink of carbon beyond 2030 is essential for supporting other sectors in meeting their national targets,” he said.
Indonesia’s Vice Minister of Environment, Diaz Hendropriyono, also shared the update about Indonesia’s submission of Nationally Determined Contribution (NDC) that include protection of coastal and ocean ecosystems, as well as national’s work priorities to manage waste and facilitate carbon trading. As a national focal point for the UNFCCC, the Ministry of Environment is responsible for coordinating national reporting and development efforts on climate change.
“Currently, around 3.9% of our national budget is allocated to climate change-related programs carried out by various ministries and agencies, not just our own,” he said. However, a significant budget gap might challenge the progress to achieve Net Zero Emission. He welcomed all forms of cooperations to fight the pressing issues together.
The Representatives from various countries warmly welcomed Indonesia’s commitment to advancing its national climate strategy. It is expected that this meeting can help strengthen current partnerships and explore new collaborations in various environment sectors. Among various future initiatives are advancing carbon trading, improving waste management and cutting methane emissions, developing sustainable infrastructures and renewable energy sectors, utilizing various climate finances, strengthening the protection of marine and coastal biodiversity, and many more. They also expressed their commitment to mobilize funds and loans to support Indonesia’s climate actions.
UNDP has also been a strong supporter of Indonesia in advancing climate actions. With the trust from Indonesian government, UNDP has succeeded to mobilize funds to implement various climate and environmental projects in Indonesia, such as the issuance of Sovereign Green Sukuk and SDG bonds and blue bonds, and introduction of the de-risking scheme unlock potentially around USD 1131 millions of revolving fund for social forestry and circular economy.
The UNDP’s Resident Representative, Norimasa Shimomura, addressed UNDP’s partnership with IEF in disbursing REDD+ Result-Based Payments from Green Climate Fund (GCF) to strengthen Indonesia’s forest management and protection efforts and mitigating risks and disasters, and advancing the establishment of social forestry. He expressed the commitment to support Indonesia to achieve its NDC targets.
“UNDP is fully committed and eager to continue supporting the implementation of this second phase. At the same time, we look forward to strengthening our collaboration with IEF/BPDLH on a broader scale, alongside the Ministry of Forestry and the Ministry of Environment,” he said.
As the meeting concluded, the importance of ongoing collaboration and concrete actions to advance Indonesia’s climate finance efforts was reaffirmed. The Ministry of Forestry, Ministry of Environment, and Ministry of Finance remain dedicated to engaging with international partners to enhance climate investments, particularly in areas such as the next phase of GCF REDD+ RBP, renewable energy, waste management, and carbon market development. Looking ahead, collective commitment, innovation, and strengthened cooperation will be crucial in transforming Indonesia’s climate finance aspirations into tangible outcomes.
While challenges remain, with strong partnerships and well-structured financial mechanisms, Indonesia is well-positioned to further contribute to global climate action.