Indonesia is highly vulnerable to climate change impacts and it is demonstrated by the Indonesia's rising Global Climate Risk Index (CRI) over the past two decades. It is projected that through 2050 the economic losses will reach 1.4% of the current GDP.
Indonesia’s commitment to drive economic growth and reduce climate risk is reflected in the policy reforms it has introduced in recent years to meet the targets announced in 2009. The country aims for a reduction of 26% on the business as usual levels by 2020, and 29% in 2030 or of 41% with international assistance.
It is therefore crucial for the Government of Indonesia to ensure adequate funding to meet their target based on the Nationally Determined Contributions (NDCs). Climate change funds can come from a variety of sources, namely public, private and blended finance. To meet annual climate change funding required, the government needs to devise strategic steps to mobilize additional funds from other potential parties, in addition to public finance, such as by stimulating private sector involvement.
This report is a form of government responsibility and public transparency in the efforts of controlling climate change. It is expected that there will be a constructive public dialogue to meet sustainable development and climate resilience in Indonesia.