🔹 Summary
The report titled “Technical Assistance to Prepare a Shelf of Projects with their Estimated Costs for Achieving Climate Ambition Targets in Indonesia by 2030” presents a comprehensive assessment of Indonesia’s investment needs and project pipeline to achieve its climate commitments under the Nationally Determined Contribution (NDC).
Indonesia has committed to reducing greenhouse gas (GHG) emissions by 29 percent unconditionally and up to 41 percent with international support by 2030. While the government has embedded climate priorities within its national development framework—including the RPJMN 2020–2024—the report highlights a substantial gap between climate financing needs and actual budget allocations.
To address this gap, the study develops a “shelf of projects”—a structured pipeline of climate mitigation investments across key sectors. A total of 268 projects are identified across:
- Agriculture, Forestry and Other Land Use (AFOLU)
- Energy and Industrial Processes (IPPU)
- Waste management
These sectors represent the largest contributors to Indonesia’s emissions, with land use and energy sectors dominating the emissions profile, as illustrated in the sectoral distribution analysis (page 10). The report underscores that achieving NDC targets depends heavily on unlocking mitigation potential in these sectors—particularly through forest conservation, renewable energy expansion, and improved waste management systems.
The analysis adopts a hybrid methodology, combining top-down data analysis with stakeholder consultations across ministries and agencies. This approach enabled the identification of priority projects along with indicative financing requirements, despite limitations in data availability and engagement timelines.
A key insight of the report is that Indonesia’s climate ambition is not constrained by policy intent, but by financing and implementation capacity. Although long-term plans envisage substantial climate investments (e.g., over Rp 3,461 trillion for 2020–2030), annual budget allocations remain insufficient, necessitating stronger mobilization of:
- Domestic public finance
- Private sector investment
- International climate finance
The report emphasizes the importance of project-level readiness and financial structuring, including better alignment between project pipelines and available financing instruments. It also highlights the need for stronger inter-ministerial coordination and stakeholder engagement to ensure effective prioritization and execution of climate investments.
Overall, the report provides a critical bridge between Indonesia’s climate commitments and actionable investment planning, offering a practical roadmap to scale up mitigation efforts while leveraging economic, environmental, and social co-benefits.
🔹 Preparation of the Report
This report was prepared by OCA Global (Consultant), as part of the World Bank team led by Arun Arya (Senior Public Sector Specialist, EEAG1/Task Team Leader), under the World Bank’s Public Financial Management (PFM) operation in Indonesia.