Indonesia

INDONESIA

Indonesia has ambitious goals to reduce greenhouse gas emissions both by 2020 and 2030 under the Paris Agreement, while at the same time maintaining strong economic growth and alleviating poverty. Sustainable land use and clean energy will be key aspects to meeting these challenges.

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Our Focus

CPI partners with government, business, and civil society—at both the national and regional levels—to support Indonesia as it reconciles its climate goals and development objectives. CPI works to implement the Production & Protection approach to realize sustainable and equitable land use in Indonesia. At the national level, CPI partners with the Ministry of Finance to understand, develop, and adjust fiscal policies and mechanisms that encourage the transition to a green economy and the optimal use of land and energy resources. CPI also closely collaborates with Ministry of Environment and Forestry and Ministry of Energy and Mineral Resources. In efforts to accelerate green investment, particularly in the energy sector, CPI works with public and private financing institutions.

CPI’s Indonesia program is led by Dr. Suzanty Sitorus.

Key Projects

  • CPI’s Production and Protection Approach to Landscape Management (PALM) aims to make a significant contribution to the development and realization of Central Kalimantan’s green growth strategy. In partnership with the University of Palangka Raya and the PILAR Foundation, CPI is supporting the province’s transition towards sustainable oil palm production while protecting vital natural landscapes.
  • CPI, in partnership with The Nature Conservancy and GIZ, is working to support East Kalimantan on sustainable land use through Low Emissions Palm Oil Development. CPI’s work, particularly focused on the Berau District, aims to optimize agricultural productivity for sustainable land use and to develop a strong sub-national fiscal policy to support regional economic growth.
  • Fiscal Policy for Sustainable and Equitable Land Resources Management aims to advance Indonesia’s fiscal policy frameworks at the national and local levels, while supporting sustainable and equitable land and resource governance. Through a series of analytical studies, policy workshops, and stakeholder meetings, CPI is demonstrating the linkages between fiscal policy and land and resource issues, and building the technical capacity of government and non-government actors to design and implement effective land use and fiscal policies.
  • The Clean Energy initiative supports accelerating renewable energy investment and reducing Indonesia’s dependence on fossil-fuel based energy. The initiative includes policy work and advisory support to public and private entities, engaging national and international groups sharing the same objectives.
  • The Landscape of Public Climate Finance provides comprehensive information about the flows of climate finance in the country by mapping the key actors, financial instruments, and target sectors that ultimately drive investment.
  • CPI is supporting the Government of Indonesia in Designing a Fit-for-Purpose Environment Fund, projected to become a leading national funding mechanism to address climate change and environmental challenges.

Partner Institutions

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What’s New in Indonesia

PUBLICATION

Energizing Renewables in Indonesia: Optimizing Public Finance Levers to Drive Private Investment

November 19, 2018

This study aims to understand the role of public finance instruments for clean energy and identify opportunities to optimize them to spur private investment in Indonesia. The ultimate objective is to inform Indonesia’s public resource allocation strategy so that it will address the most critical barriers to clean energy investment and improve public capital efficiency.

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PUBLICATION

Energizing Finance: Understanding the Landscape 2018

November 12, 2018

The Energizing Finance series is the first and only in-depth attempt to capture multiple years of data on investment for the two key areas of energy access: electrification and clean cooking. It focuses on public and private finance commitments in 20 developing countries – known as the high-impact countries – that together account for nearly 80% of those living without access to sustainable energy.

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PUBLICATION

Empowering Oil Palm Smallholder Farmers through Alternative Livelihoods

October 26, 2018

Climate Policy Initiative and the University of Palangka Raya and PILAR Foundation have developed an alternative livelihood research program that will not only help smallholder farmers secure alternative sources of income, but will also be scaled to businesses with the means to further grow the rural economy. This brief focuses on the business model aspects of two alternative livelihoods - cattle feed and fisheries - with application specifically to the East Kotawaringin and Katingan districts of Central Kalimantan in Indonesia.

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EVENT

CPI becomes a partner to SDG Indonesia One

Jakarta, Indonesia, October 5, 2018

On October 5, 2018, the Ministry of Finance of Indonesia and PT. Sarana Multi Infrastruktur (PT SMI) launched SDG Indonesia ...

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EVENT

CPI partners with Allen & Overy for renewable energy project financing training at PT SMI

Jakarta, October 3, 2018

On 3 October, Climate Policy Initiative (CPI) together with Legal Consultant Ginting  & Reksodiputro (Allen & Overy) organized an in-house ...

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