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Update / News

Green Climate Fund’s Progress in Indonesia

To enhance the quality of performance and opening dialogue opportunities between stakeholders, the Fiscal Policy Agency (FPA), as the National Designated Authority to the Green Climate Fund (GCF) is holding another Annual Participatory Review (APR) forum on the 23rd of November 2021. Aside from holding discussions on the engagement and enhancement of stakeholders, the 4th APR forum also presents the progress of several approved GCF projects through a presentation session by the respective Accredited Entities.

Currently, Indonesia has 9 approved GCF projects. In the 4th APR, three projects are under implementation, they are Geothermal Resource Risk Mitigation (GREM) project, project preparation of the Bus Rapid Transit (BRT) in Semarang, and Results-based Payment for REDD+ Performance 2014-2016, presented by the representatives of the World Bank, PT. Sarana Multi Infrastruktur, UNDP, project implementing entity, Indonesia Environmental Fund (IEF). Through the three projects, Indonesia has received a total fund of USD 204.8 million. The amount is outside of the allocation received from multi-countries projects accessible to Indonesia.

The GREM project, aimed as a facility to de-risking geothermal explorations, has been implemented since December 2020 and has the State’s Electricity Company (PLN) and Pertamina as participants. The preparation of Semarang’s BRT project has also started since 2018. By utilizing preliminary studies funded by the GCF grant, PT. SMI is currently developing a BRT funding proposal which targeted to be operational in 2023. Lastly, the REDD+ project has also been implemented since December 2020. At present, UNDP alongside the IEF and the Ministry of Environment and Forestry (MoEF) is doing an assessment and documentation on various Forest Management Unit and Social Forestry who will receive funding.

Aside from the presentation of projects’ progresses, the 4th APR also held a Focused Group Discussion (FGD) session participated by various stakeholders. Through the FGD session, it is found that transparency on the GCF proposal needs to be improved, such as stating the expected submission duration, and explanation on the roles of stakeholders in the GCF project cycle. Additionally, a capacity building is also needed on the process of developing a climate project idea, especially in the steps of implementing Gender Equality and Social Inclusion (GESI) principles and building scientific justification on the climate context as the project’s basis.