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From Policy to Practice: Indonesia and GGGI Building the Architecture for Green Economy

June 3, 2026

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Jakarta, June 2, 2026 – The Indonesian government, through the Ministry of National Development Planning (PPN/Bappenas) and the Global Green Growth Institute (GGGI), is continuing to strengthen its collaboration in implementing national policies on sustainable development. 

These efforts need to be reinforced by adequate financing, including the mobilization of funding beyond the state budget, such as private sector investment and innovative financing schemes.  

“The partnership with GGGI, which has been in place for the past 12 years, has consistently contributed to our national development goals. GGGI works closely with ministries, provincial governments, and financial institutions to create conditions that support investment and drive systemic change,” said Nizhar Marizi, Director for Environment at the Ministry of PPN/Bappenas, at a media briefing in Jakarta on June 2, 2026.

The contribution of this partnership is measured by the results achieved, rather than through direct implementation. Policy interventions and investment pipelines developed through this collaboration are estimated to have supported emissions reductions equivalent to 183.54 million tons of CO, as well as the creation of 271,095 green jobs. In addition, approximately USD 776.5 million in green investments has been mobilized across various sectors, ranging from energy and urban development to social forestry and the blue economy. 

The partnership has now entered a new chapter under the Green Indonesia Future Initiative (GIFT) 2026–2030, which will be officially launched on June 4, 2026, in Jakarta. The event marks the beginning of the most ambitious phase of the collaboration, featuring higher targets, a more agile approach, and a stronger effort to address an increasingly urgent question: how Indonesia can ensure that its economic growth does not come at the expense of its future. 

GIFT aims to mobilize USD 2 billion in green investment by 2030—twice the total achieved across all previous phases combined. “The name GIFT itself reflects our commitment that the development interventions we carry out today are intended not only for present needs, but also for the future and for generations to come. After embedding green economy principles into our development plans, the challenge now lies in implementation. Green economic transformation is not a choice, but a necessity to ensure that Indonesia’s development continues to grow while safeguarding environmental sustainability and public welfare,” said Leonardo A. A. Teguh Sambodo, Deputy for Food, Natural Resources, and Environment at the Ministry of PPN/Bappenas. 

Meanwhile, amid increasingly complex development challenges—including the triple planetary crisis encompassing climate change, biodiversity loss, and environmental pollution—Indonesia is strengthening its climate mitigation and adaptation agenda through its Second Nationally Determined Contribution (SNDC) 2031–2035 and National Adaptation Plan (NAP) 2026–2030. Protection and sustainable use of biodiversity are being pursued through the Indonesian Biodiversity Strategy and Action Plan (IBSAP) 2025–2045, alongside the transformation of sustainable production and consumption patterns through the Indonesia Circular Economy Roadmap and Action Plan. 

“As a result of climate change, economic losses are projected to increase nearly fourfold—from Rp 469 trillion in 2025 to Rp 2,005 trillion by 2029—if no action is taken or under a business-as-usual scenario. Therefore, this GIFT partnership is expected to unlock additional financing opportunities to support low-carbon development in Indonesia,” Director Nizhar explained. 

GIFT builds on 12 years of work in which GGGI has played three interconnected roles: pioneering financing models new to Indonesia, supporting ministries and local governments in enabling policies and practices, and opening doors to global funding sources. Equally central to this work has been strengthening policymakers’ capacity to apply a green growth lens in their everyday decisions.  

Rowan Fraser, GGGI Country Representative for Indonesia, added: “Through GIFT 2026–2030, we are entering a phase that builds on the foundations we have laid. GIFT aims to bring opportunities to scale up Indonesia’s climate ambition while minimizing investment risk and expanding access to financing for bankable, high-impact green initiatives.”  

Going forward, the initiative is also expected to drive opportunities for green job creation, strengthen energy security, support circular economy practices across various sectors, and mobilize green investments from diverse funding sources, serving as key pillars of green growth that deliver tangible benefits to society. 

 

About the Global Green Growth Institute (GGGI) 

The Global Green Growth Institute (GGGI) was founded as a treaty-based international, inter-governmental organization in 2012 at the United Nations Conference on Sustainable Development. GGGI supports its Member States in transitioning their economies toward a green growth model that simultaneously achieves poverty reduction, social inclusion, environmental sustainability, and economic growth. With 55 Member States and 30 Partner countries and regional integration organizations in the process of accession, GGGI delivers programs and projects in over 50 countries. These initiatives encompass developing innovative green growth solutions, technical support, capacity building, policy planning & implementation, and assistance in building a pipeline of bankable green investment projects, project financing, investments, and knowledge sharing. GGGI’s work contributes to its Member States’ efforts to fulfill the Sustainable Development Goals and the Nationally Determined Contributions to the Paris Agreement. 

 

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For more information, visit:  https://gggi.org 

 

Media Contact 

Andita Listyarini

GGGI Senior Communications Officer, Indonesia

andita.listyarini@gggi.org

+62 813-1725-4384

 

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