Assessing Jakarta’s Climate Investments

The report finds that Jakarta's urban climate finance from 2015-2019 totaled USD 44.9 billion, heavily dominated by public funding and a single mega-project, the Giant Sea Wall. Despite having the highest fiscal capacity in Indonesia, Jakarta underutilizes private finance, which accounted for only 2% of total climate investment. The study recommends better alignment between the city, the central government, and satellite cities, alongside the adoption of innovative financing tools like green municipal bonds to reduce reliance on central government funding, especially given plans to move the national capital.

• Total tracked urban climate finance commitments in Jakarta from 2015 to 2019 were USD 44.9 billion (IDR 652.4 trillion) across 37 projects, with the Giant Sea Wall adaptation project accounting for 83% (USD 41.2 billion) of these commitments.
• Public finance was the dominant source of climate funding, with the central government providing approximately 57% of the total. Mitigation projects, specifically sustainable transportation, primarily relied on debt finance totaling USD 2.7 billion, while adaptation projects typically used equity finance.
• Private finance is significantly underutilized, representing only 2% (USD 925 million) of total climate finance between 2015 and 2019, with 89% of that amount consisting of balance sheet debt.
• Jakarta possesses high fiscal capacity—scoring 6.2 on the national fiscal capacity index compared to a national average of 1.1—yet it had no interest-bearing liabilities in 2017-2018, indicating a failure to leverage loans from financial institutions or multilateral development banks.
• There is a lack of policy alignment between Jakarta and its satellite cities (Bogor, Depok, Tangerang, and Bekasi), which is critical for managing shared climate risks such as river management to prevent flooding and waste management.
• The city's reliance on central government funding is a strategic risk due to plans to move the national capital to East Kalimantan by 2024, which may reduce the amount of financing Jakarta receives.

APA

Mafira, T., Larasati, L., Mecca, B., Haesra, A., & Meatlle, C. (2021). Assessing Jakarta’s Climate Investments. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/11/Assessing-Jakartas-Climate-Investments.pdf

Chicago

Mafira, Tiza, Luthfyana Larasati, Brurce Mecca, Alke Haesra, and Chavi Meatlle. Assessing Jakarta’s Climate Investments. Climate Policy Initiative, 2021. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/11/Assessing-Jakartas-Climate-Investments.pdf.

Wikipedia

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BibTeX

@techreport{mafira2021assessing, author = {Mafira, Tiza and Larasati, Luthfyana and Mecca, Brurce and Haesra, Alke and Meatlle, Chavi}, title = {{Assessing Jakarta’s Climate Investments}}, institution = {Climate Policy Initiative}, year = {2021}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2021/11/Assessing-Jakartas-Climate-Investments.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }