Adaptation Financing in Indonesia Ade Rachmi Yuliantri National Council on Climate Change Indonesia Source of Climate Finance in Indonesia National Government Budget Bilateral and multilateral Society and Philanthropy Private Sector Climate Change Carbon Market FINANCIAL SOURCES Government Existing Multilateral & Bilateral Develepment Agencies (ODA) Climate Multilateral & Bilateral Assistance Potentials Philanthropic organization Domestic & Foreign Private Sectors Market-based MECHANISM Annual budget; Gov. investment in SOEs; Gov. investment bodies. Grants; loans; investments; export credit; debt swaps; etc Grants; loans; investments; debt swaps; etc Grants; loans; investments, etc Direct investments; commercial bank loans; asset finance (lease); forward contract; IPOs). CDM & Offsets; Payment for International Services. Sumber: NEEDS report, DNPI & UNFCCC (2009) RECIPIENTS • Sectoral agencies/line ministries • Local governments • Public-private partnership projects • • • • Government agencies NGOs Private sector Public-private partnership projects • Civil society or private sector initiated projects • Project developers (private sector initiated projects or public-private partnership) Project developers, retailers & resellers of offsets National Landscape of International Public Finance in Indonesia Source: ODI Working Paper No.11, 2011 International Funds that have been Committed Clean Technology Fund: USD 400 million (debt) Forest Investment Program: USD 80 million (grant and soft loans) Climate Change Program Loan (CCPL) Step I: USD 500 million (JBIC & AFD) Step II: USD 900 million (JBIC, AFD & WB) Debt to Nature Swap Germany: reduce EUR 12,5000,000 MoE obligate to do 2 environment programme: financial assistance for environmental investment for micro and small enterprises project US: reduce USD 30,000,000 Tropical Forest Conservation Act (TFCA) implemented by CI-IP and Biodiversity Foundation (KEHATI) in Sumatera Bilateral (USAID) agreement running by Private Sector IMACs MMAF and Chemonics Inc. Resilience and CCA for Coastal area and fisherman IFACs Tetra Tech ARD Deforestation and climate change Bilateral (USAID) agreement running by Civil Society Scale Resilience MercyCorps – URDI – MPBI - ISET West Sumatera, Lampung, DKI Jakarta, Maluku Funds from Private Sectors (Rockefeller Foundation) running by Civil Society ACCRN (Asian Cities Climate Change Resilience Network) MercyCorps – URDI Bandar Lampung, Semarang - ICCTF (grant) Total: USD 11,342,310 DFiD/UK CCU: USD 9,518,110 AusAID: AUD 1,404,470 SIDA: USD 331,730 UNDP: USD 88,000 Fund Disbursement and Allocation Available Fund as of 2012 Available Fund Amount (USD) Remaining funds as of Jan 2012 5,756,000 Balance from MOI project (to be refunded at the end of 2012) 130,000 Balance from MOA & BMKG projects 25,000 Total Available Fund 5,911,000 Funds Approved by SC Allocated Fund Proposed Budget to be considered in SC Amount (USD) ICCTF Operation 2012 & UNDP capacity development program 885,000 Project ICCTF–MoA, 2012-2014 1,509,000 Project ICCTF–MoH, 2012-2014 Project ICCTF–MoFor, 2012-2014 Total Allocated Fund 2012-2014 Proposed Allocation Amount (USD) ICCTF Operation 2013 (estimated) 550,000 ICCTF Operation 2014 (estimated) 550,000 879,000 New projects funding 2013-2014 (small grants IDR<500 mio to CSOs) 913,000 625,000 Total Proposed Fund 2,013,000 3,898,000 Note: It is expected that all remaining fund under UNDP will be totally disbursed by end of 2014 www.icctf.or.id Conclution Indonesia already have the commitment to financing Adaptation, although the amount was not as much as financing Mitigation Recommendation Need more capacity building for climate finance institution as beneficiaries of public finance that came from donor countries and national government budget (APBN). Lack of information about climate change funding that has been accept (data and report). Lack of understanding about the mechanism and disbursement of climate change finance. Need more policies about climate change finance and trust fund to cope with the differences of donor countries or funding institutions disbursement system with government regulation. Thank You… rachmi.dnpi@gmail.com www.dnpi.go.id