Indonesia is the world’s fifth-largest emitter of greenhouse gases and the largest contributor of forest-based emissions. The Government of Indonesia 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. 

The GCF provides financial support to help Indonesia achieve the national GHG emissions reduction targets by channeling funds to climate projects and programs. GGGI is the Readiness Delivery Partner for the GCF National Designated Authority (NDA), namely the Ministry of Finance, Fiscal Policy Agency. This Readiness project includes activities aimed to deliver tangible results that match all five key GCF readiness outcomes: 

• Country Capacity Strengthened: Initial drafts of the coordination mechanisms and NOL procedure have not been finalized with multi-stakeholder input. Development of the monitoring and oversight system will start within this workstream. 
• Stakeholders engaged: This set of activities will ensure a multi-stakeholder approach with strong gender equality focus. 
• Direct access realized: While Indonesia is already in an advanced state with one DAE, additional direct access by national entities is needed. As of 2018, few national institutions understand or meet requirements for accreditation. This workstream will identify and support selected entities to successfully pass the GCF accreditation process. 
• Access to finance: Identify and develop potential bankable projects, matchmaking between the private sector, financial institutions 
• Private sector mobilized: While green and climate-friendly investment is growing in Indonesia, challenges remain to crowd-in private sector investors into key sectors. This workstream will identify investment barriers, develop solutions, and facilitate lender-borrower matchmaking for climate investments. 

Project objectives: 

1. Establish and strengthen national designated authorities; 
2. Develop strategic frameworks, including the preparation of country programs and development of the GCF project pipeline; and 
3. Support for accreditation and accredited direct access entities. 

Impact: 

Indonesia has benefited from increased levels of capacity, strengthened processes and improved access to finance that contribute to the country’s ability to effectively engage with the Green Climate Fund. 

Outcome: 

1. Country capacity strengthened 
2. Stakeholders engaged 
3. Direct access realized 
4. Access to finance 
5. Private sector mobilization 

Project Outputs completed in 2019: 

i. Green Growth Policies:

• The GCF Country Program has been completed. The list of prioritized projects/programs improved formal national consultation mechanisms for stakeholder engagement, and climate finance mapping are included in this updated version of the country program. 
• The final Communication Strategy for the NDA has been completed. 
• The NDA procedures, checklists, and guidelines were revised to address aspects of gender equality and social inclusion. 
• Annual Participatory Review Mechanism and Guidelines on Meaningful Participation in Multi-Stakeholder Consultations were established.

ii. Green Investments: 

In 2019, the project has successfully laid the foundation for the NDA to perform its functions and to hold a strategic position in the country’s climate finance. Under this Readiness project, the NDA has issued six No-Objection Letters for funding proposals and GCF technical assistance for projects (two in 2019), three of which have been approved by the GCF. 

National green financing stakeholders have been strongly engaged in GCF activities to establish a pipeline of GCF funding proposals: i) The Country Programme was updated through strong formalized national consultations; and ii) The first Annual Participatory Forum was conducted with 152 participants, 49% of which were women. Moreover, 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 Government of Norway. 

iii. Capacity Building and Knowledge Products: 

• Total of 6 capacity building activities in the form of workshops on climate change program with gender perspective for ministry officials, on harmonizing climate finance opportunities and provincial climate change priorities in East Java and West Papua, on gender and social Inclusion, training on monitoring and evaluation tools, and workshop on concept note writing. 
• Total of 3 knowledge products were produced in the form of guidelines and booklets.

Country Representative: Marcel Silvius 

Project supervisor: Norbert Maas 

Project Manager: Dessi Yuliana 

Muhammad Yahdiyan, Titaningtyas Titaningtyas.