Taking stock of international contributions to low carbon climate resilient land use in Indonesia

This research paper evaluates the role and effectiveness of international development partners in financing climate mitigation and adaptation within Indonesia's land use sectors. It analyzes finance flows from 2011, identifying a heavy reliance on grants and a focus on capacity building, while noting that international contributions are significantly smaller than domestic funding.

• International climate finance for Indonesia's land use sector is small compared to domestic spending. In 2011, the agriculture and forestry sectors received USD 486 million in total finance, of which only 12% (USD 57 million) came from international development partners, while the Indonesian government provided the remaining USD 429 million.
• International funding is highly concentrated among a few bilateral partners and is primarily delivered through external entities rather than local ones. Ten bilateral partners, including Norway and USAID, provided approximately 88% of the international finance for land use in 2011. Furthermore, about 85% of this finance was channeled through managing contractors, international NGOs, UN organizations, and other international groups, which the authors suggest may limit the development impact on local government and target groups.
• International support has focused heavily on 'indirect' activities to improve the enabling environment, which aligns with Indonesia's systemic weaknesses. In 2011, 48% of disbursements were for indirect activities such as policy advice, research, and institutional development (e.g., MRV systems and timber legality), while only 13% went to 'direct' implementation like ecosystem rehabilitation. The document identifies persisting weaknesses in Indonesia's enabling environment, including corruption, lack of political support, and conflicts over land rights.
• International land use climate finance in Indonesia consists almost entirely of grants, with the exception of concessional loans from the International Fund for Agricultural Development. The authors suggest that these loan projects could offer a model for leveraging private sector investment in sustainable agriculture value chains, such as oil palm.
• Several systemic challenges hinder the effectiveness of international cooperation, including a mismatch between short-term project cycles and long-term land use objectives, as well as fragmented reporting and slow approval processes. The authors recommend that development partners delink funding from the short-term political cycles of donor governments and coordinate more systematically with the Indonesian government to create a cross-ministerial vision for land use.

APA

Climate Policy Initiative (2016). Taking stock of international contributions to low carbon climate resilient land use in Indonesia. https://www.climatepolicyinitiative.org/publication/taking-stock-of-international-contributions-to-low-carbon-climate-resilient-land-use-in-indonesia/

Chicago

Climate Policy Initiative. Taking stock of international contributions to low carbon climate resilient land use in Indonesia. 2016. https://www.climatepolicyinitiative.org/publication/taking-stock-of-international-contributions-to-low-carbon-climate-resilient-land-use-in-indonesia/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Taking stock of international contributions to low carbon climate resilient land use in Indonesia |date=2 February 2016 |url=https://www.climatepolicyinitiative.org/publication/taking-stock-of-international-contributions-to-low-carbon-climate-resilient-land-use-in-indonesia/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2016taking, author = {{Climate Policy Initiative}}, title = {{Taking stock of international contributions to low carbon climate resilient land use in Indonesia}}, institution = {Climate Policy Initiative}, year = {2016}, month = feb, url = {https://www.climatepolicyinitiative.org/publication/taking-stock-of-international-contributions-to-low-carbon-climate-resilient-land-use-in-indonesia/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }