The Landscape of Public Climate Finance in Indonesia

Indonesia’s desire to drive economic growth and reduce climate risk is reflected in the sweeping policy reforms it has introduced in recent years to meet targets announced in 2009 to reduce greenhouse gas emissions. It is aiming for a reduction of 26% on business as usual levels by 2020, or of 41% with international support. Public policy and finance will play a crucial role in meeting these targets. International and domestic public actors are now scaling up investment, and different levels of Indonesian government are setting up frameworks to incentivize the private finance that will undoubtedly also be required. Understanding which public actors are investing, through which instruments, what they are investing in, and for what reasons, is therefore essential. By identifying what is already happening on the ground in Indonesia through this report, we provide a baseline against which to measure progress and plan scale up. We also reveal investment patterns that allow us to pinpoint where the biggest barriers and opportunities are. The Landscape of Public Climate Finance in Indonesia, conducted by the Indonesian Ministry of Finance’s Fiscal Policy Agency and Climate Policy Initiative (CPI) breaks new ground. It is the first time CPI has undertaken a landscape in a developing country. It is valuable both as an overview of public climate flows in Indonesia, and an insight into the significant methodological challenges in tracking and collecting this information.