In an effort to support the acceleration of green project development in Indonesia, the Fiscal Policy Agency (FPA) of the Ministry of Finance, as the National Designated Authority (NDA) of the Green Climate Fund (GCF) in Indonesia, along with the Global Green Growth Institute (GGGI) as the implementing partner for Readiness project, is developing a strategy document for engaging the private sector in accessing green finance with support from Greenwise Consulting. One of the stages in the process of developing this strategy is the implementation of a Focus Group Discussion (FGD) on March 22nd, 2024, which aims to gather input and validate strategic recommendations to support the green finance ecosystem in Indonesia. The FGD participants come from selected priority sectors, namely Nature Based Solutions (NBS), water, renewable energy, food, and finance.

The FGD began with a welcoming address delivered by Mr. Eko Nur Prihandoko of the NDA Secretariat. His address outlined the main discussion topics for the FGD. He explained that the preliminary process for developing this strategy had been ongoing since early 2024, involving desk reviews, interviews, and a Sectoral Situation Analysis FGD. The outcome of this preliminary process was a Situation Analysis Report, which served as the foundation for drafting the strategy. This proposed strategy was the primary topic of discussion for the FGD.

The session continued with a presentation by Ms. Lenny Hidayat, founder of Greenwise Consulting, who explained the context of the strategy development to set the stage for the FGD discussion. The approach used in drafting the strategy, the scope of the study, and initial findings of the study were also explained, including key findings that highlight the need for a balance between strategic policies aimed at promoting market maturity in the targeted sectors and the maturity of these sectors themselves in creating innovative green projects.

Following the presentation was a discussion session where participants were grouped according to their respective sectors. They were asked to provide rankings and ratings on strategic factors—strengths, weaknesses, opportunities, and threats (SWOT)—that could influence their sector's involvement in accessing green finance. These strategic factors were synthesized by the Greenwise team based on previously collected data. This process aimed to identify priority factors to refine the resulting strategy. Additionally, the session facilitated questions and feedback from the FGD participants. A significant finding from this discussion was the need for the government to accelerate the dissemination of information and knowledge related to sustainable finance, including mechanisms for private stakeholders to access green finance.

The insights gathered from this FGD will not only add information for the finalization of the private sector engagement strategy—one of BKF's strategic documents to promote the green finance ecosystem in Indonesia—but will also serve as a reference in developing the blended finance forum framework, currently under formulation.

In the future, this private sector engagement strategy is expected to increase private sector participation in accessing green funding and financing green projects. This will enhance Indonesia's capacity to attract more green investments and funding, contributing to the achievement of national climate targets.