The Indonesia Country Climate and Development Report (CCDR) 2023 outlines a comprehensive framework for Indonesia’s transition to a low-carbon and climate-resilient economy while emphasizing the alignment of climate priorities with development goals. With its high reliance on carbon-intensive resources like coal and peatlands, Indonesia faces unique challenges in decoupling economic growth from greenhouse gas (GHG) emissions. However, this report highlights strategies for balancing growth and environmental goals by leveraging policy reforms, renewable energy, and resource efficiency improvements.
The report presents Indonesia’s significant commitments under the Long-Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR) and Enhanced Nationally Determined Contribution (NDC), targeting substantial emission reductions by 2030. Indonesia’s initiatives, supported by international frameworks, aim to reduce its dependency on carbon-intensive resources, transition to sustainable land use, and improve efficiency across sectors, particularly in energy, agriculture, and urban development.
As a member of the World Bank team, I contributed to the foundational research for this report by preparing background papers on Aligning the State Budget for Climate Priorities of Indonesia and the Climate Change Institutional Assessment of Indonesia. Serving as the Senior Public Sector Specialist and Task Team Leader of the World Bank’s Public Finance Management program in Indonesia (based in Jakarta from 2018-2022), I supported efforts to integrate climate priorities into Indonesia’s fiscal strategies, providing analysis on institutional frameworks and financial mechanisms essential for supporting these ambitious climate goals.
The CCDR recognizes Indonesia’s progress in reducing land-based emissions, stabilizing energy intensity, and implementing key policies such as peatland restoration and zero-burning regulations. Yet, it also underscores the necessity of continued adaptation to manage escalating climate risks, including more frequent and severe climate-related disasters. To secure these development and climate goals, the report advocates for a coordinated national response involving enhanced institutional capacities, targeted budget allocations, and international financial support.