Indonesia, located in Southeast Asia, consists of more than 17,500 islands, with over 81,000 kilometers (km) of coastline. With varied topography and climates, Indonesia is highly vulnerable to climate change impacts, including extreme events, such as floods, droughts, and long-term changes from sea-level rises, shifts in rainfall patterns, and increasing temperatures. Its vulnerability is exacerbated by high population density in hazard-prone areas, coupled with strong dependence on the country’s natural resource base.
INVESTING IN INDONESIA
CIF’s investments in Indonesia are through its Clean Technology Fund (CTF) and Forest Investment Program (FIP). Indonesia's $474-million CTF investment plan is targeted at advancing geothermal development. CTF's concessional financing is facilitating commercial lending that is expected to lead five geothermal projects totaling 750 megawatts to financial closure, thereby setting a benchmark for commercial bank lending. It is also providing risk capital to help other projects complete the exploratory drilling phase of development.
The country's $42-million FIP investment plan aims to enhance institutional capacity for forest management and the support of community-based forest management, capacity building, and livelihoods development. Forestry enterprises and firms in related sectors outside of forests are also being engaged to integrate sustainable land use practices in their business operations.
Through the CIF-Technical Assistance Facility, approximatley $270,000 was programmed for technical assistance activities in 2021. The programs covered an array of activites to support climate adaptation and mitigation, through climate-resilient capacity building for smallholder farmers.
In 2021, Indonesia was chosen as one of the first 4 pilot countries selected for the Accelerating Coal Transition (ACT) program, and can receive up to $500 milliion in financing for program implementation.
Indonesia Projects
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Climate action and development are inextricably linked. This link has been confirmed by a new independent evaluation that assesses and analyzes how climate finance programs can lead to broader social, economic, environmental, and market development impacts.
May 03, 2023
09:00 AM - 10:30 AM EST
