Assessing Jakarta's Climate Investments

This case study by the Climate Policy Initiative tracks public and private urban climate investment flows in Jakarta between 2015 and 2019, identifying a heavy reliance on public funding and a significant underutilization of private finance.

• Between 2015 and 2019, Jakarta's tracked urban climate finance commitments totaled USD 44.9 billion (IDR 652.4 trillion) across 37 projects. The vast majority of these commitments were directed toward infrastructure, with the now-discontinued Giant Sea Wall adaptation project representing 83% of the total.
• Public finance was the primary source of urban climate funding from 2015 to 2019, with the central government providing 57% of the funding for infrastructure capital expenditure. While adaptation projects typically used equity finance, mitigation projects—specifically sustainable transportation—were primarily funded via debt finance totaling USD 2.7 billion (IDR 39.2 trillion).
• Private finance is significantly underutilized in Jakarta, accounting for only 2% of total climate finance (USD 925 million or IDR 13.4 billion) between 2015 and 2019, with 89% of that amount utilizing balance sheet debt. The city did not access any loans from financial institutions during 2017–2018, indicating a failure to leverage its fiscal capacity through innovative financing or Public-Private Partnerships (PPP).
• Jakarta faces severe climate risks, including being described as the "world’s fastest sinking city" due to groundwater exploitation, poor city planning, and climate-driven sea level rise and rainfall intensity. To combat this, the city has committed to reducing Greenhouse Gas emissions by 30% by 2030 from a business-as-usual level of 35 MT CO2e.
• Despite strong fiscal capacity, Jakarta's municipal budget allocated only 8.6% to environment-related spending in 2017 and 2018. The report recommends aligning climate priorities with the national government and satellite cities, implementing climate budget tagging, and scaling up catalytic financing to prepare for a potential future reduction in central government funding if Jakarta loses its capital city status.

APA

Climate Policy Initiative (2021). Assessing Jakarta's Climate Investments. https://www.climatepolicyinitiative.org/publication/assessing-jakartas-climate-investments/

Chicago

Climate Policy Initiative. Assessing Jakarta's Climate Investments. 2021. https://www.climatepolicyinitiative.org/publication/assessing-jakartas-climate-investments/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Assessing Jakarta's Climate Investments |date=10 November 2021 |url=https://www.climatepolicyinitiative.org/publication/assessing-jakartas-climate-investments/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021assessing, author = {{Climate Policy Initiative}}, title = {{Assessing Jakarta's Climate Investments}}, institution = {Climate Policy Initiative}, year = {2021}, month = nov, url = {https://www.climatepolicyinitiative.org/publication/assessing-jakartas-climate-investments/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }