GFI Indonesia

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Indonesia is at a critical juncture, needing to deliver both growth and jobs while addressing the threat of climate change. The country is committed to reducing greenhouse gas emissions, with substantial funding requirements outlined in its subsequent to Indonesia’s First Nationally Determined Contribution (NDC) submission in 2016.

While public and international funding contribute to Indonesia’s climate efforts, private sector investment remains limited. Between 2015 and 2021, private investment totalled USD 20.77 billion, primarily in energy and transport, but only 2.6% accounted for climate-aligned investments, underscoring the need for more targeted policy and financing strategies to attract sustainable capital.

Indonesia estimates it will need USD 285 billion to meet its 2030 climate targets, but only 34% of this required budget be covered by the public budget by 2030 and with an additional committed from private and .

To address this 51% funding gap, the Ministry of Finance has introduced measures to track and allocate climate-related spending, institutional legal and regulatory reforms and taxonomies to guide green investments.

Despite these initiatives, the investment challenge remains. For Indonesia to meet its climate goals and drive long-term economic growth, it must strengthen public investment strategies and policy frameworks to leverage private capital and accelerate sustainable development.

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GFI's role

The Green Finance Institute serves as a strategic partner to the Government of Indonesia, providing advisory support on green finance. Operating on behalf of the UK GFI is developing dedicated programmes of work in Indonesia to support the mobilisation of private capital to deliver rapid decarbonisation.

By working with government agencies, and partnering with financial institutions, corporates, NGOs, policymakers, academics and civil society experts, the GFI creates and scales innovative solutions that deliver practical outcomes for communities and economies tailored to the country’s context.

As experts in green finance, the GFI is uniquely positioned to bridge the gap between committed capital and impactful solutions, delivering positive outcomes for climate and nature by developing interventions that will redeploy capital at the pace and scale that the science demands.

Recent engagements include supporting Indonesia’s Ministry of Finance in designing governance mechanisms for the Sustainable Finance Committee and working with PT SMI to develop blended finance solutions for NDC priority sectors.

Team

Dr. Poppy Ismalina

Consultant, Indonesia

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