Following GCF Strategic Plan 2024-2027, GCF will increase readiness support for national entities. One of them is by providing technical support as a trial program in Indonesia, focusing on the energy and forestry sectors. Regarding this support, GCF visited Indonesia on October 11-13, 2023, and 30 October to 3 November 2023.

In the last few years, Indonesia has attempted to boost the development of the Green Climate Fund (GCF) project from national Accredited Entities. One of the efforts involved conducting a Call for Project Concept Note, which resulted in several potential projects under national Accredited Entities, PT. Sarana Multi Infrastruktur (PT. SMI) and Kemitraan.

In this visit, GCF focused on the projects proposed through the Call for Project Concept Note to accelerate their development. This was done through discussions with various key stakeholders to understand the regional context of the projects and align them with the national agenda.

The energy sector is a priority sector in Indonesia. On October 11-13, 2023, GCF held a meeting with PT. SMI, one of the accredited entities, which also manages the Energy Transition Mechanism (ETM) fund platform. In this project, collaboration between PT. SMI and Perusahaan Listrik Negara (PLN) can significantly contribute to the transition to renewable energy while increasing energy access in remote islands. This project can also serve as a catalyst for other projects aimed at reducing the vulnerability of populations in remote Indonesian islands and decreasing dependence on diesel.

Furthermore, the forestry and land-use sector, through the Green Peatland Facility Project by the Indonesia Environment Fund (IEF), was one of the objectives of GCF's visit from October 30 to November 3, 2023. This visit discussed the Green Peatland Facility Project proposed through the Project-Specific Accreditation Approach (PSAA) modality, where the PSAA process allows entities to receive funds from GCF for only one project. The Green Peatland Facility Project is a manifestation of Indonesia's commitment to achieving FOLU Net Sink 2030.

The GCF team also engaged in discussions with Kemitraan and several nationally accredited entities in Indonesia to understand various projects in the forestry and land-use sector. As initially intended, GCF seeks to understand the project's on-ground situation and align one project with another to fit national agendas or priorities.

This visit successfully identified specific steps needed to design quality concept notes, particularly in priority sectors, namely FOLU & energy. This aligns with the current priority of the NDA secretariat, which is to develop projects aligned with Indonesia's priority sectors and improve the quality of concept notes developed by DAE. Therefore, the Fiscal Policy Agency (BKF) as the National Design Authority (NDA), along with the Global Green Growth Institute (GGGI) as the implementing partner, is ready to provide technical support through the Third Readiness Phase program.