Guideline for Implementing Green House Gas Emission Reduction Action Plan
77
longer period until 2020 amounting to around US100billion per year must be able to be mobilized both from public and private funds.
Until today, several countries have promised to support Indonesia in implementing adaptation and climate change mitigation actions whose funds
reach around US4.4billion for some years ahead.
International funds can take the forms of grants and loans. For loans, existing real needs should be calculated. Because they are earmarked for funding
GHG emission programs which are a global responsibility, the form of loans requires special treatment with low risks and loan cost. The form of loans such
as Debt to Nature Swap DNS is one of the mechanisms used for inancing environmental management. The mechanism can also be continued for GHG
emission reduction inancing purposes.
5.2 Funding Mechanism
The use of funds coming from domestic and international sides must follow the mechanisms as stipulated in the regulations related to the state’s inancial
management sector.
Generally, the fund managed by the government for inancing GHG emission reduction initiatives is carried out through the APBN. To inance
activities that are the central government’s functions, the APBN funds are channelled through ministryagency’s budget in the forms of sectoral funds,
deconcentration funds and co-administration funds.
Whereas, for inancing activities that are the regions’ functions, the inancing uses the APBD. Due to limited local funds, it is likely to add funds from the
central government through transfer and grants mechanisms.
Nowadays, management of international grants is regulated in the Government Regulation No. 102011 on Procedure for Provision of Loans
andor Receipt of International Grants as well as International Sub-Loans and Sub-Grants, which is followed up by Regulation of Minister of Finance No 40
PMK.052009 on Grants Accounting System as well as Regulation of PPN Minister Head of Bappenas No. 052006 on Procedure for Proposal Planning
and Submission and Evaluation on Activities inanced by International Loans and Grants PHLN.
Guideline for Implementing Green House Gas Emission Reduction Action Plan
78
Domestically supported Internationally supported
NAMAs Credits NAMAs NAMAs
• Bilateral and multilateral inancing • Supports from Developed Country • Carbon Market • Public private
Parties under UNFCCC framework Compensationoffsets • Grant Trust
• Incentive Mechanism • Domestic carbon market
Table 16.
Potential Financing Scheme
for NAMAs. Source:
Situmeang 2010.
