InfoSAWIT, JAKARTA – Growing commitments by international climate finance institutions are creating wider opportunities for Indonesia to secure funding for climate adaptation initiatives. However, experts say those opportunities can only be fully realized through stronger project preparation, credible data, and closer collaboration among government agencies, civil society, the private sector, and funding institutions.
The issue was highlighted during the plenary session titled "Sustainable Financing for Climate Change Adaptation in Indonesia" at the National Seminar on Sustainable Climate Resilience, organized by KEMITRAAN in collaboration with Indonesia's Ministry of Environment and Environmental Control Agency.
Reading remarks on behalf of the Minister of Environment, Franky Zamzami, Director of Climate Change Adaptation at the ministry, said strengthening adaptation capacity has become increasingly urgent for Indonesia as an archipelagic nation highly vulnerable to climate-related impacts.
According to a statement received by InfoSAWIT, he noted that climate change is intensifying extreme weather events and natural disasters while posing growing risks to food production, water availability, public health, energy security, and biodiversity.
Franky cited the UNEP Adaptation Gap Report 2025, which estimates that global adaptation financing needs are between 12 and 14 times greater than current funding flows. Against that backdrop, international financing mechanisms such as the Green Climate Fund (GCF) and the Adaptation Fund (AF) have become increasingly important sources of support for climate resilience programs.
Indonesia has already secured Adaptation Fund financing through KEMITRAAN, one of the country's nationally accredited entities. The government hopes additional domestic institutions will achieve similar accreditation to broaden Indonesia's access to international climate finance.
Kardono, Coordinator of Climate Change Adaptation Planning and Development at the Ministry of Environment, said Indonesia has substantial opportunities to attract international funding, although proposal development and approval remain lengthy and technically demanding.
Preparing concept notes, full funding proposals, and completing donor assessments can take several years, making institutional capacity a critical factor in securing financing, he said.
Meanwhile, Joko Tri Haryanto, President Director of the Environmental Fund Management Agency (BPDLH), emphasized that climate adaptation financing cannot rely solely on national and regional government budgets.
BPDLH is mandated to mobilize funding from multilateral and bilateral institutions, philanthropic organizations, and the private sector before channeling resources more flexibly to eligible beneficiaries.
He also highlighted BPDLH's expanding role in financing mangrove conservation, blue carbon initiatives, blue financing, disaster endowment funds, and community-based adaptation projects through small grant mechanisms.
Representing Indonesia's National Designated Authority for the Green Climate Fund at the Ministry of Finance, Ruhadiantama Wicaksono said the GCF will pursue a more balanced allocation between mitigation and adaptation projects beginning in 2026.
The policy is expected to create greater financing opportunities through Indonesia's two national Direct Access Entities—KEMITRAAN and PT Sarana Multi Infrastruktur (PT SMI).
However, he stressed that successful proposals must satisfy stringent environmental, social, and governance safeguards while demonstrating strong coordination among ministries, local governments, civil society organizations, and other stakeholders.
KEMITRAAN Executive Director Nurina Widagdo added that securing international climate finance depends not only on funding availability but also on institutional readiness.
She said successful projects must respond to community needs, align with national development priorities, and be supported by robust data, measurable program design, and comprehensive monitoring and evaluation systems.
From the private sector, Halim Kalla, Vice Chairman for Green Industry at the Indonesian Chamber of Commerce and Industry (KADIN), called for climate financing mechanisms that are more accessible to businesses and supported by stronger incentives to encourage greater private investment in climate adaptation and mitigation initiatives. (T2)
