Jakarta (Indonesia Window) – Commercial financial institutions dominate the financing for climate change adaptation and mitigation in Indonesia as they contribute US$8.9 billion or 67 percent of the total value, the Climate Policy Initiative (CPI) said in a report received here on Friday.
The report also mentioned that the study of climate finance tracking from the private sector was the first in Indonesia.
Climate financing from the private sector reached at least US$13.2 billion in the 2015-2018 period.
Of this amount, renewable energy is the sector that receives the most funding (56 percent) with commercial credit as the dominant instrument used at US$9.4 billion or 72 percent of total funding.
With this percentage of funding, CPI has carried out a number of activities that assist regional and national governments in achieving development objectives that are in favor of the environment and community survival.
“CPI in Indonesia has done a perfect job to provide recommendations to the government on the effectiveness and innovation of funding for climate change, which includes energy and land use issues,” said Amanda Katili Niode, head of the expert team at the Office of the President’s Special Envoy for Climate Change Control.
Previously, CPI had provided recommendations to local and national governments on the management of more sustainable oil palm plantations in East and Central Kalimantan in partnership with Palangka Raya University and the PILAR Foundation.
Reporting by Indonesia Window