CLIMATE CHANGE FINANCING FOR CITIES IN INDONESIA

This case study examines the landscape of climate change financing for cities in Indonesia, with a specific focus on the city of Kupang. It analyzes the availability of international, national, and local funds, identifies significant governance and funding gaps at the municipal level, and proposes the establishment of a local trust fund to better mobilize and manage climate finance for mitigation and adaptation.

• Indonesia faces significant hurdles in accessing the Green Climate Fund (GCF) due to the difficulty of gaining accreditation for national entities. These challenges include high translation costs for operational procedures, a lack of GCF standards for assessing Environmental and Social Safeguards (ESS), and strict requirements for 'Know Your Customer (KYC)' procedures that non-profit organizations often lack.
• The city of Kupang lacks a formal regulatory framework, strategy, or action plan for reducing greenhouse gas emissions, which hinders the effective disbursement of climate finance. While it has a recently developed action plan for adaptation and disaster risk reduction supported by the UNDP, it has not integrated climate change analysis into its medium-term development plan for 2012-2017.
• Kupang faces a severe funding gap for essential climate-related infrastructure. For the period 2015-2019, the city estimated financial needs for waste-water management, waste, and drainage at IDR 276.967 million, but only IDR 53.47 million was available through the local budget, leaving a gap of IDR 223.497 million.
• Public climate finance in Indonesia is heavily concentrated at the central government level, with a significant blockage in the flow of funds to local governments. In 2011, approximately 97% of public climate finance was disbursed through ministries and agencies, with only a small proportion reaching local governments as grants.
• Kupang's climate vulnerabilities are high, particularly regarding water security. Less than 38% of the population has access to piped water, and the city is highly vulnerable to droughts. Poor residents may spend between 20% and 50% of their income to meet their water needs.
• The document proposes the creation of a 'Kupang Climate Change Trust Fund' to pool resources from international funds, the local budget (APBD), donors, and CSR. This fund would feature three windows: Adaptation/Resilience (30%), Mitigation (40%), and Project Development (30%) to provide technical assistance for feasibility studies.
• Local financing options in Kupang include Corporate Social Responsibility (CSR) funds from Bank NTT, which disbursed IDR 4.82 billion in 2015. However, these funds often remain idle due to a lack of information on potential climate actions and a lack of submitted proposals.
• Civil society organizations (CSOs) in Kupang are implementing climate-relevant activities through innovative self-funding and social enterprise models. For example, Geng Motor Imut (GMI) sells low-carbon technologies like biogas installations and efficient cook-stoves to fund further research and innovation.

APA

Torry, H. I., & Tumiwa, K. F. (n.d.). CLIMATE CHANGE FINANCING FOR CITIES IN INDONESIA. Climate and Development Knowledge Network. http://cdkn.org/wp-content/uploads/2017/01/CASE-STUDY-Climate-change-financing-for-cities-in-Indonesia.pdf

Chicago

Torry, Henriette Imelda, and Kuswardono Fabby Tumiwa. CLIMATE CHANGE FINANCING FOR CITIES IN INDONESIA. Climate and Development Knowledge Network, n.d. http://cdkn.org/wp-content/uploads/2017/01/CASE-STUDY-Climate-change-financing-for-cities-in-Indonesia.pdf.

Wikipedia

{{cite report |last1=Torry |first1=Henriette Imelda |last2=Tumiwa |first2=Kuswardono Fabby |title=CLIMATE CHANGE FINANCING FOR CITIES IN INDONESIA |publisher=Climate and Development Knowledge Network |url=http://cdkn.org/wp-content/uploads/2017/01/CASE-STUDY-Climate-change-financing-for-cities-in-Indonesia.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{torryndclimate, author = {Torry, Henriette Imelda and Tumiwa, Kuswardono Fabby}, title = {{CLIMATE CHANGE FINANCING FOR CITIES IN INDONESIA}}, institution = {Climate and Development Knowledge Network}, url = {http://cdkn.org/wp-content/uploads/2017/01/CASE-STUDY-Climate-change-financing-for-cities-in-Indonesia.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }