Ary Sudijanto, a ministry official, confirmed that Indonesia submitted its first Biennial Transparency Report (BTR) in 2024, detailing funding, technology, and capacity needs to meet NDC targets.
“The implementation of the Multi‑Scheme Carbon Economic Value is one of the steps developed to optimize climate finance based on the mandate of Article 6 of the Paris Agreement and the existing regulatory framework,” he said.
Under the Enhanced NDC, Indonesia aims to cut greenhouse gas emissions by 31.89 percent through domestic efforts and by 43.2 percent with global financial support.
Annex 1 of the BTR maps out Indonesia’s climate finance needs, totaling US$282 billion—US$281.18 billion for mitigation and US$816.52 million for adaptation.
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Energy sector requirements dominate, with US$245.996 billion, followed by US$21.62 billion for forestry and land use (FOLU).
Additional needs include US$13 billion for waste management, US$504 million for agriculture, and US$65 million for the Industrial Processes and Product Use (IPPU) sector.
Indonesia has already secured some funding through Result‑Based Payment (RBP) under REDD+, a Result‑Based Contribution (RBC) from Norway, and the Forest Carbon Partnership Facility (FCPF).
Sudijanto said a Mutual Recognition Agreement (MRA) with five independent crediting schemes now allows carbon trading across 54 technology-based and 58 nature-based methodologies—an expected driver for emissions-reduction investments.
By integrating the Multi‑Scheme CVA, Indonesia aims to take concrete steps to consolidate its climate finance architecture and accelerate progress toward its ambitious NDC targets.
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Translator: Prisca Triferna Violleta, Cindy Frishanti Octavia
Editor: Rahmad Nasution
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