Joint Press Release – Ministry of Environment and Forestry & Ministry of Finance of the Republic of Indonesia
Indonesia has recorded an approved funding worth USD103.8 million from the Green Climate Fund for the REDD+ (Reducing Emissions from Deforestation and Forest Degradation) Results-Based Payment (RBP) proposal. This achievement highlights Indonesia’s notable response towards the threat of climate change and shows increased trust towards Indonesia domestically and by the international community. The momentum also served as a great start for future Indonesia-GCF relations.
Jakarta, Indonesia, August 27 2020—Indonesia, with its proposal titled “REDD+ Results-Based Payment (RBP) for the period 2014-2016”, is going to receive GCF funding worth USD103.8 million that will be managed by the Environmental Fund Management Agency (Badan Pengelola Dana Lingkungan Hidup/BPDLH). During the 26th GCF Board Meeting on August 18-21, 2020, Indonesia’s REDD+ funding proposal was approved as the largest recipient, surpassing Brazil’s approved proposal worth USD 96.5 million under the REDD+ RBP GCF pilot program. The REDD+ RBP from GCF pilot program began in 2017 and will take place until 2022. Indonesia is the fifth country to successfully access this pilot program, worth a total of USD500 million (after Paraguay, Chile, Ecuador, and Brazil).
The proposal submitted by the Ministry of Environment and Forestry (MoEF) presented the results of Indonesia’s REDD+ performance for the 2014-2016 period, with an emissions reduction volume of around 20.3 million tons of carbon-dioxide equivalent (tCO2eq). Currently, Indonesia uses the average annual emissions of the land sector as baseline calculation, in line with the Guidelines for Land Use published by the Intergovernmental Panel on Climate Change (IPCC).
Indonesia will use the funds to strengthen coordination, implementation, and REDD+ architectures holistically. The funds will also be used to support the decentralized sustainable forest management through the Forest Management Units (FMUs) and Social Forestry, as well as project management. The RBP funds from GCF and Norway demonstrated international trust towards the BPDLH, which is expected to become the largest national agency to promote green financing.
MoEF works with the Ministry of Finance (MoF) to determine the use of the RBP funds. MoEF will be responsible for conducting the activities and achieving results agreed by the two parties, in accordance to the allocated funds in the proposal, such as deforestation reduction efforts, forest and land fire management, law enforcement, and supporting land and forest rehabilitation in line with the directives by the President of the Republic of Indonesia. MoF will be responsible for managing, monitoring, and evaluation of project performances to ensure that GCF resources are effectively utilized through the BPDLH.
The Minister of Environment and Forestry, Siti Nurbaya Bakar stated, “The hard work in the past decade in conserving forests and avoiding deforestation have resulted in the results-based payment from Norway and GCF. However, our efforts cannot end here. This achievement will contribute towards low emissions development efforts, and as mandated by the President, will support community-based environmental recovery.”
The Minister of Finance, Sri Mulyani Indrawati said, “We are pleased that the Minister of Environment and Forestry and her team have successfully secured the funding of USD103.8 million, which is greater than Brazil’s proposal for their Amazon (worth USD 96.5 million). Appreciations goes to MoEF which have shown the world that Indonesia is not only committed towards climate change, but is willing to showcase concrete achievements through this funding. We hope that this momentum will continue to foster the involvement and support from various stakeholders regarding Indonesia’s proposals to the GCF.”
The Minister of Finance further mentioned that the funding received by Indonesia will support the national budget (APBN) to finance climate change. “This funding for Indonesia will support the APBN to finance climate change. Results from the Climate Budget Tagging (CBT) underscores the gap between national climate requirements and the allocated funds within the national budget,” the Minister added. She also conveyed her hopes that this momentum will continue to foster the involvement and support from various stakeholders regarding Indonesia’s proposals to the GCF.
The Directorate General of Climate Change (DGCC) of the MoEF took the lead in formulating the REDD+ RBP proposal to the GCF through cooperation with various stakeholders, which include international organizations. The Fiscal Policy Agency (FPA) as the National Designated Authority (NDA) for GCF conducted a review and submitted the proposal that was developed by the United Nations Development Program (UNDP) as an accredited entity along with other partners such as the Global Green Growth Institute (GGGI).
This approval by the GCF is positive news. However, Indonesia still requires further climate funding to achieve its NDC target. Developed countries need to immediately realize their commitments for climate funding worth USD 100 billion per year until 2020 to support developing countries.
About the Directorate General of Climate Change,
Ministry of Environment and Forestry of the Republic of Indonesia
The Directorate General of Climate Change (DGCC) is a policy implementing unit within the Ministry of Environment and Forestry that deals with climate change, particularly in the implementation of mitigation, adaptation, reduction of greenhouse gas (GHG) emissions, reduction and eradication of ozone-depleting substances, resource mobilization, GHG inventory, monitoring, reporting, and verification of climate change mitigation, as well as managing land and forest fires. The establishment of DGCC is a new hope for the implementation of well-managed climate change response activities in support of sustainable environmental and forestry development objectives. To learn more, visit: http://ditjenppi.menlhk.go.id/.
The Directorate General of Climate Change
Ministry of Environment and Forestry of the Republic of Indonesia
Mobile: +62 812 1257 3390
Telephone: +62 21 5730144
About the Fiscal Policy Agency – National Designated Authority for the GCF
Ministry of Finance of the Republic of Indonesia
The Fiscal Policy Agency is an echelon I level unit within the Ministry of Finance with the strategic function of policy formulation in the financial and fiscal sector, as well as macroeconomics, national budgeting, funding, and international cooperation. To learn more about GCF funding, visit the NDA-GCF website at: https://fiskal.kemenkeu.go.id/nda_gcf/en.
NDA GCF Secretariat in Indonesia
Telephone: +62 21 34831676