To reduce the Greenhouse Gas (GHG) emissions in Indonesia as stated in the Nationally Determined Contribution (NDC) Document, Indonesia has undertaken significant and strategic steps to utilize the Green Climate Fund (GCF). As the primary source of the international climate fund, GCF can strengthen the state budget and may attract more private sector investment which will be the key to achieve Indonesia’s NDC targets.
GCF prioritizes state ownership on measuring a country’s commitments and its mitigation and adaptation efforts to climate change. To ensure this, the Fiscal Policy Agency (Badan Kebijakan Fiskal/BKF) as the National Designated Authority (NDA) prepares and publishes Indonesia’s GCF Country Programme.
In 2019, BKF published the Country Program Document that refined the previous version published in March 2018. The Program Document is the main reference for Accredited Entities or program initiators to align their project or program proposal with national priorities to raise its chances to secure GCF funding.
The national priorities specified in the Program Document are manifestations of Indonesia’s ownership principles and a summary of the National Medium-term Development Plan (RPJMN) and the Presidential Regulation on the National Action Plan for Reducing the Greenhouse Gas Emission (RAN-GRK). In addition, national priorities were also summarized from several documents including: Indonesia’s Nationally Appropriate Mitigation Actions (NAMAs), NDC, and the National Action Plan for Climate Change Adaptation (RAN-API) that was published in 2014 and equipped with gender responsive guidelines prepared by the Ministry of Women’s Empowerment and Child Protection.
This document contains:
Specific targets of climate change mitigation and adaptation projects/programs.
Mainstreaming climate change issues into Indonesia's development plans.
Financial resources needed to fund actions to mitigate and adapt to climate change in order to achieve various goals.
GCF fit in Indonesia's climate change finance landscape.
Priority actions that the GCF can fund and how to apply.
This Program Document should serve as a guide for all Accredited Entities in preparing proposals or concept notes to obtain funding support for climate projects/programs to be implemented in Indonesia. With this guidance, it is expected that climate project/program owners can align their activity plans to support national priorities and comply with laws and regulations in Indonesia.
This document is intended for various target audiences, namely:
Ministries and Government Institutions - as a guideline for compiling a list of climate priorities in each sector that can serve as a guideline for Accredited Entities who wish to initiate cooperation with relevant ministries/government institutions.
Project/Program Owners and Supports (Accredited Entities) - as a guideline in developing project proposals related to climate actions in their respective fields, which should be in line with the national priorities for climate change.
Civil Society and General Public - as a guideline for monitoring climate actions to ensure its implementations toward its goals and objectives with no negative impacts on the environment, social and economy.
The GCF Secretariat and Donor Organizations - as a reference on national priorities for climate change as well as a reference list of ideas or concepts on climate actions that they might be able to invest in.
The priority programs proposed in the Program Document were prepared by involving experts and inputs from consultations and interviews with all stakeholders. The priority program was chosen by the experts and stakeholders based on the things listed in such official government documents as the national communication with UNFCCC and the national and sectoral planning documents. Climate action priorities are categorized into various priority themes based on climate priorities listed in national documents.
Based on the technical assessments of official government documents and interviews with stakeholders, some items for NDA to consider in accepting projects/programs to be financed by GCF are:
1. Mitigation aspects, including:
Cost effectiveness - GCF should be prioritized to finance projects/programs that involve advanced technology and are capital intensive.
Financial gaps – GCF is specifically allocated for prioritized sectors that significantly lacking in funding, such as in the energy sector.
Mitigation beneficiaries – GCF is prioritized for the private sector, specifically as soft loans, to achieve the unconditional emission reduction target (29%).
Adaptation Aspects, including:
Geographical vulnerability – Vulnerable regions are assessed based on the vulnerability index issued by the Ministry of Environment and Forestry and also the top priority for disadvantaged, frontier and outermost (3T) regions.
Adaptation beneficiaries – These include communities, local governments, Civil Society Organizations (CSOs), and companies that help communities, including vulnerable groups such as indigenous people, women and children. CSOs can access grants for micro or small projects.
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