Indonesia needs Rp8,450 trillion for emissions cuts through 2035
The government’s environmental fund agency manages US$1.72 billion and is prioritising overseas funding alongside domestic contributions.
Indonesia requires about US$472.6 billion, or around Rp8,450 trillion, in investment to reduce emissions over the 2021–2035 period, CNBC Indonesia reported. The government established the Environmental Fund Management Agency (BPDLH) to manage green funding, including money supporting those reductions.
Speaking in Bogor on 2 October 2026, BPDLH president director Joko Tri Haryanto said the agency manages US$1.72 billion, or Rp30.81 trillion. It draws funding through grants, loans and donations, with contributions coming from both Indonesia and overseas.
Joko said overseas fundraising remained the priority because addressing climate change was a global undertaking rather than Indonesia’s responsibility alone. When BPDLH was established in 2019, then-finance minister Sri Mulyani directed it to actively seek international funding, he said.
One international source is compensation from developed countries for developing nations considered to have suffered adverse effects from industrialisation, Joko said. BPDLH currently manages US$216 million in such funding from Norway.
Domestic funding comes from allocations across relevant ministries, including the Forestry Ministry, Industry Ministry and Ministry of Marine Affairs and Fisheries, according to Joko.
He said combining domestic and overseas resources would help accelerate emissions reductions to 41 per cent by 2030, against a 32 per cent target. The agency would continue seeking international funds while regularly receiving domestic funding.
