The impact of Indonesia’s public climate finance system

Indonesia is pushing forward to sustain economic growth while reducing greenhouse emissions. The country aims for a 26% reduction in business-as-usual levels by 2020, or 41% with international support. To reduce greenhouse gas emissions, Indonesia recognizes the critical role of finance. Public and private financing, from both foreign and domestic entities will be needed to invest in emission reducing strategies and technologies. To better understand the flow of financing the Indonesian Ministry of Finance’s Fiscal Policy Agency and the Climate Policy Initiative implemented a comprehensive study of Indonesia’s financial market to establish a baseline upon which to improve the investment markets. The focus of the analysis is to understand which actors are investing, through what instruments, into what technologies, and for what reasons, in order to provide a baseline against which to measure progress and plan for scaling up.