5 An Indonesian Ministry of Finance CPI Report
1.1 Introduction
In 2012, annual global climate inance lows reached approximately USD 359 billion – far short of estimated
needs Buchner et.al, 2013. Now in its third edition, Climate Policy Initiative’s
Global Landscape study is helping policy makers to understand how public
resources and money can support mitigation and adaptation eforts, enabling increased action on low-
carbon, climate-resilient development. T he Landscape
of Public Climate Finance in Indonesia Indonesian Landscape applies the CPI framework to a developing
country for the irst time. It aims to inform ongoing eforts by the Government of Indonesia to understand
how climate inance is lowing through the economy, and the areas on which it could focus to improve
efectiveness going forward. This is achieved by mapping the life cycle of lows, from sources through
to intermediaries, instruments, disbursement channels, and inal uses.
Climate Policy Initiative CPI conducted this Indonesian Landscape study in partnership with the Fiscal Policy
Agency of the Indonesian Ministry of Finance MoF. It draws a comprehensive picture of public climate
inance lows in Indonesia by compiling the best available data on public inance from a range of national
and international sources. Importantly, owing to diiculties accessing suicient, comparable, and reliable
data, we have excluded private sector lows from the scope of our inquiry see section 2, ‘Methodological
Approach’.
Our principal questions are: • How much public climate inance is lowing
through the Indonesian economy? • Which organizations or agencies are providing
andor managing the delivery of climate inance?
• What inancial instruments and mechanisms are being used?
• What mitigation and adaptation activities does the inance support?
This study neither assesses the scale of inance required to achieve Indonesia’s emission reduction targets,
1
nor whether inance is being used efectively. Likewise,
it does not assess the extent to which international climate inance commitments, made in the context of
multilateral negotiations, are being met, or otherwise.
2
The Indonesian Landscape establishes a baseline
of information that aims to inform future analysis about whether inance is being used efectively. Its
indings equip policy makers with information to help understand how to increase climate inance lows from
domestic and international sources.
Section 2 outlines our methodology and explain key deinitions and methods for gathering and analyzing
data.
Section 3 summarizes the legal and regulatory framework that governs public climate inance in
Indonesia.
Section 4 describes the public climate inance landscape in Indonesia in 2011 and provides more
detail on the roles key actors play across the life cycle, including the central government and international
development partners, as well as local government, and state-owned enterprises.
Section 5 concludes with our key indings and some action points for Indonesian and international policy
makers.
1 Indonesia’s inancing needs were assessed in Indonesia’s irst Mitigation
Fiscal Framework MoF, 2012. 2
This report presents estimates of annual disbursements that are not read- ily comparable to commitments, which are often multi-year or not speciic
to one single recipient country. Deinitions of climate inance associated with commitments are also variable.
1. Overview and Objectives
6 An Indonesian Ministry of Finance CPI Report
1.2 Contextualizing Indonesia’s climate change challenges
Kategori