Taking Stock of International Contributions to Low Carbon, Climate Resilient Land Use in Indonesia

The report analyzes international climate finance for land use in Indonesia, finding that while international support is well-targeted toward building 'enabling environments' (capacity building and policy), it is significantly smaller than domestic funding and often bypasses local government institutions. The authors recommend longer project durations, better coordination through a centralized government database, and capacity building for local organizations to access international funds directly.

• International development partner funding for land use is significantly lower than domestic government spending. In 2011, of the USD 486 million tracked for agriculture and forestry, only 12% (USD 57 million) came from international partners, while the Indonesian government provided the remaining USD 429 million.
• International finance for Indonesia's land use sectors is highly concentrated among a few bilateral donors. Ten bilateral partners, such as Norway and USAID, provided approximately 88% of the international finance disbursed to these sectors in 2011, with multilateral organizations and funds accounting for the remaining 12%.
• The vast majority of international climate finance for land use is delivered through international entities rather than Indonesian organizations. Approximately 85% of 2011 funding for forestry and agriculture was managed by international NGOs, UN organizations, managing contractors, international governments, development banks, and universities.
• 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 (IFAD). In 2011, 93% of finance in the agriculture and forestry sectors was provided as grants.
• International support has primarily focused on 'indirect' activities to create an enabling environment rather than 'direct' implementation. In 2011, 48% of disbursements were for indirect activities (such as training, research, and policy advice), while only 13% were for direct implementation (such as ecosystem rehabilitation and fire management), with 39% containing both components.
• The focus on enabling environments is appropriate because Indonesia faces persistent structural weaknesses, including a lack of consistent spatial information on licenses and permits, failure to recognize customary land rights, land right conflicts, corruption, and limited institutional capacity.
• International cooperation is hindered by several practical challenges, including fragmented reporting requirements, complex application procedures, high staff turnover, duplication of donor efforts, and a mismatch between short-term project cycles and the long-term nature of land use changes.
• The Indonesia-Norway USD 1 billion agreement represents a shift toward results-based finance, though the transition to direct pay-for-performance actions is still ongoing. It is noted as an example of "non-payment for non-performance" because USD 800 million for later phases has not yet been channeled due to a lack of demonstrated emission reductions.

APA

Falconer, A., & Glenday, S. (2016). Taking Stock of International Contributions to Low Carbon, Climate Resilient Land Use in Indonesia. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2016/02/Taking-Stock-of-International-Contributions-to-Low-Carbon-Climate-Resilient-Land-Use-in-Indonesia-Full-Study.pdf

Chicago

Falconer, Angela, and Skye Glenday. Taking Stock of International Contributions to Low Carbon, Climate Resilient Land Use in Indonesia. Climate Policy Initiative, 2016. https://www.climatepolicyinitiative.org/wp-content/uploads/2016/02/Taking-Stock-of-International-Contributions-to-Low-Carbon-Climate-Resilient-Land-Use-in-Indonesia-Full-Study.pdf.

Wikipedia

{{cite report |last1=Falconer |first1=Angela |last2=Glenday |first2=Skye |title=Taking Stock of International Contributions to Low Carbon, Climate Resilient Land Use in Indonesia |publisher=Climate Policy Initiative |date=February 2016 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2016/02/Taking-Stock-of-International-Contributions-to-Low-Carbon-Climate-Resilient-Land-Use-in-Indonesia-Full-Study.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{falconer2016taking, author = {Falconer, Angela and Glenday, Skye}, 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/wp-content/uploads/2016/02/Taking-Stock-of-International-Contributions-to-Low-Carbon-Climate-Resilient-Land-Use-in-Indonesia-Full-Study.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }