2020 started with a rude awakening in Indonesia as the capital city became flooded after a single night of the most intense rainfall to occur since 1866. As the impact of the climate crisis becomes increasingly and directly felt by ordinary citizens, awareness is also increasing, together with a demand for action. In 2020, will investments for addressing climate change increase? Will we see a significant shift away from coal investments that contribute to emissions, and how might government deal with the transition? Climate Policy Initiative in Indonesia is working closely with government, investors, and development finance institutions to support Indonesia’s green goals.

Here is a reflection of the progress we’ve made in 2019 and a preview of what is in stock for 2020.

Developing a guarantee instrument to catalyze renewable energy investments in Indonesia

A guarantee mechanism is one of the many potential de-risking instruments to help accelerate renewable energy development in Indonesia. CPI’s Indonesia office recently published a report in collaboration with PT Sarana Multi Infrastruktur (Persero) — a state-owned enterprise focused on infrastructure funding — that specifically focuses on the potential of developing a guarantee instrument to help catalyze renewable energy investments in Indonesia. This study is part of a larger research program that explores the potential of developing a green investment bank model in Indonesia.

> Read the report