Indonesia is the world’s fifth-largest emitter of greenhouse gases and the largest contributor of forest-based emissions. The Government of Indonesia (GoI) has pledged to reduce 29% of its emissions compared to the Business as Usual (BAU) by 2030 financed by own resources, and committed to 41% reductions, subject to international assistance for finance, technology transfer, and capacity building.  

Under the leadership of the Ministry for National Development Planning (BAPPENAS), GGGI has supported the GoI to develop strategies and approaches for green growth through its Green Growth Program (GGP) with a focus on Sustainable Landscapes, Energy, Special Economic Zones and GoI’s engagement with the Green Climate Fund.  The support emphasizes the acceleration of investment in inclusive, green projects, with an aim to help GoI meet its Nationally Determined Contribution (NDC) and Sustainable Development Goals (SDG) commitments. Phase II (2016-2020) of the Indonesia Green Growth Program (GGPII) aims to unlock large-scale finance and deliver high impact with a focus on developing climate-smart and socially inclusive investment projects. 

This project is aligned with GGGI Intermediate Outcome 1. Strengthened national, sub-national and local green growth planning, financing and institutional frameworks and 2. Increased green growth investment flows which enable partner governments to implement green growth policies. 

Impact: Indonesia achieves green growth that is socially inclusive, environmentally sustainable, and resource efficient. 

Outcome 1-4: 

1. Green growth plans and strategies related to energy, special economic zones, forest and land-based mitigation, and across sectors are adopted by the relevant Indonesian government authorities 
2. A systematic enabling approach to encourage green investment is adopted by the relevant Indonesian government authorities 
3. Increased green investment is directed to focal sectors 
4. A Green Growth Secretariat supports well informed national and sub-national decision-makers within capable institutions to understand, replicate, and scale up green growth approaches 

Project Outputs completed in 2019:

i. Green Growth Policies: 

In 2019, GGGI supported the GoI in mainstreaming Green Growth to more than 30 adopted policies, plans and regulations at all planning levels with a focus on renewable energy, Special Economic Zones and sustainable landscapes (forests and peatlands).   

Examples of key government policy and planning include: 

• The Nationally Determined Contributions (NDC) Roadmap for Climate Change Mitigation 2020-2030; 
• The Forestry Background Study for the National Medium-Term Development Plan (RPJMN) 2020-2030;  
• The Ministry of Environment and Forestry Strategic Plan 2020-2024; 
• Emissions reduction program for the FCPF-CF period of 2019-2024 (6 years) for the Province of East Kalimantan as the first sub-national jurisdictional REDD+ program in Indonesia, mobilizing up to USD 170 million in results-based payments;  
• General Planning for Regional Energy (RUED) in East and Central Kalimantan;  
• Policy adopted for roll-out of 16 green growth training modules in 2020 by NIPA, Indonesia’s highest government institution for public sector capacity development; and  
• Guidelines for greening Special Economic Zones. 

 ii. Green Investments: 

Advisory outputs that aim to create enabling environment: 

• Forest Carbon Partnership Facility Carbon Fund (FCPF-CF): Design of emission reductions program and governance, mainstreaming into provincial development plan, design of national and subnational MRV, safeguards, and benefit sharing plan. 
• BioCarbon Fund Initiative for Sustainable Forest Landscapes: Design of emission reductions program and governance. 
• Green Climate Fund REDD+ Results-Based Payments: Analysis on overlapping period of payment with other results-based payments initiatives, design of emission reductions program and governance, safeguards. 

Green investments catalyzed: 

• In 2019, East Kalimantan’s Jurisdictional Emission Reduction Program (EPRD) was approved mobilizing USD 110 million result-based payment through the FCPF-CF and ca. USD 70 million from Indonesia. It will provide incentive for protecting one of the world’s largest and most biodiverse tropical rainforests. The commitment by the Indonesian Government of USD 67 million in 2018 was not counted yet in 2018. In 2019, the ERPD was signed between GoI and World Bank FCPF. This can be regarded as the commitment of a total of 180 million by 2 parties. 
• As the Green Climate Fund (GCF) Readiness Delivery Partner, GGGI facilitated the Ministry of Finance’s GCF call for proposals.  The Call has attracted more than 150 project ideas with total funding value of more than ca. USD 1.5 billion, leading to a short-list of project concept notes with USD 700 million funding requested from GCF for 47 potential climate change projects. This activity is supported by funding from the GCF and the Government of Norway. 

iii. Capacity Building and Knowledge Products  

• Policy adopted for roll-out of 16 green growth training modules in 2020 (by NIPA, the highest government institution for public sector capacity building)  
• Total of 33 Capacity building activities in the form of coaching clinics, training the trainers, leadership training, and green growth sessions. 
• Total of 4 knowledge products produced on lessons learned on Emission Reductions Program in East Kalimantan, Diary of a Green Soul Book, and various green growth training modules.  

Project Manager: Marcel Silvius 

Adi Nugroho, Ahyoni Ahyoni, Anna Urbinas, Benjamin Tular, Berliana Yusuf, Cecilia Peggy Mariska, Chris Bennet, Dessi Yuliana, Dwi Marseva Amalia, Dyah Catur Wahyuningtyas, Eko Setiabudi, Endah Purnawati, Herliati (Ellie) Rahmi, Josiano (Ozzy) Meihaar, Kurnya Roesad, Latifa Sitadevi, Luh Hapasari, Mariski Nirwan, Marthinus (Marco) Wattimena, Mayang Meilantina, Meirini Sucahyo, Monika Made, Muhammad Fadli, Norbert Maass, Paulus Tallulembang, Rani Hapsari, Rieska Purba, Satria Wira Tenaya, Shashank Swan, Sitti Nabilla, Vikalp Sabhlok,  Shashank Swan, Taswin Munir, Timothy Jessup, Yonata (Joey) Syarief, Yudy Sanjaya Lim, Yuli.