Indonesia

Last updated: September 2024

The country is one of the priority countries with which the International Climate Initiative (IKI) maintains a particularly close cooperation.

Indonesia plays an important role in the achievement of the objectives of the Paris Agreement and the Convention on Biological Diversity (CBD). The country is one of the ten largest emitters of greenhouse gas in the world and, according to the Nationally Determined Contribution (NDC), emissions will continue to increase until 2030.

As an archipelago, Indonesia is also severely affected by the impacts of climate change. The rich and unique biodiversity of the country is endangered by non-sustainable practices. The Indonesian government has expressed its commitment to respond to these challenges and has developed a policy framework for the climate and biodiversity.

Within the framework of its second NDC submission in December 2020, Indonesia has expressed its commitment to continue to pursue its existing target to reduce emissions by 29 per cent by 2030 - and to increase this target to 41 per cent against the established business-as-usual scenario if international support is provided.

The country has also submitted a long-term strategy with its NDC, which would be compatible with a potential CO₂ neutrality by 2060.

In its Medium-Term National Development Plan (RPJMN - Rencana Pembangunan Jangka Menengah Nasional 2020-2024), the Indonesian government will strive to reduce greenhouse gas emissions by 27.3 per cent from the initial figure by 2024. However, the climate transparency report of 2020 determined that Indonesia's emission path scenario is not consistent with the Paris Agreement and would lead to a climate warming figure of between three and four degrees Celsius. For this reason, medium- and long-term planning must provide for an increase in the relevant ambitions.

In its RPJMN, the government has also determined goals for biodiversity conservation, including

the preservation of 45 million hectares of primary forests and 70 million hectares of high conservation value (HCV) areas,

the improvement of the cultivation of important ecosystem areas in 55 target locations, and

the establishment of a financing mechanism for biodiversity conservation per year.

If these targets are to be achieved, a strategic approach with a clear operational definition of biodiversity and financial resources are necessary.
The projects of the IKI in Indonesia are divided between all four funding areas. With regard to the mitigation of greenhouse gas emissions, priority is primarily placed on the promotion of renewable energies and urban transport.

In the other funding areas, priority is particularly placed on forests, marshlands and coral reefs, as well as on the sustainable cultivation of oil palms.

The following two projects were chosen as part of the first IKI country call 2019/2020 with Indonesia:

Sustainable land use and biodiversity: LASSO - Land- and Seascape Solutions for Indonesia
Energy Transition: SETI - Sustainable Energy Transition in Indonesia
Partnership for a just energy transition
In November 2022, Indonesia and the International Partners Group, which includes the United States, Japan, Denmark, Germany, the European Union, France, the United Kingdom, Italy, Canada and Norway, entered into a Just Energy Transition Partnership (JETP).

This envisages more ambitious climate action targets, such as an earlier phase-out of fossil fuels and faster expansion of renewable energies. The goals are accompanied by financial commitments from the donor countries, in order to ensure that the energy transition is implemented in a socially balanced and sustainable manner. The IKI contributes to the partnership.

Interface project

Most priority countries of the IKI also engage in so-called IKI interface projects, which have permanent project offices in the capital city of the respective country. Alongside their own, country-specific project commission, these interface projects are also tasked with maintaining close contact to environment and climate ministries as well as networking with other relevant ministries in the field of climate and biodiversity policy. Beyond this, the interface projects also work to network all of the IKI projects in the country and region together so as to promote synergies.

The interface function is currently represented by the project Climate and Biodiversity Hub Indonesia.

Project priorities

Support of the Indonesian government in implementing its climate and biodiversity policy;
Policy advice, capacity building and inter-ministerial exchange;
Mobilisation of additional resources from all sources (including: private and financial institutions);
Function as an IKI interface: promoting dialogue on climate and biodiversity between the IKI projects in the country as well as between other actors (networking offers and knowledge management).

Project contact

ikihubindonesia(at)giz.de

Link to project page

Insights into the project work

All projects in the country

In a nutshell

Region: Asia

Population: 277.5 million (World Bank, 2023)

CO₂eq emissions (incl. LUCF): 1.485 billion t (7th rank of global top emitters) (ClimateWatch, 2021)

CO₂eq emissions per capita (incl. LUCF): 5.4 t (ClimateWatch, 2021)

Total energy supply (IRENA, 2021):

20 % RE (66 % Bioenergy - 5 % Hydro/marine - 29 % Geothermal)
29 % Oil
15 % Gas
36 % Coal + others

IKI projects in the country (last updated in June 2024):

bilateral: 13 ongoing, 25 completed
regional: 11 ongoing, 17 completed
global: 23 ongoing, 41 completed

ClimateWatch

NDC partnership: country page

IKI partner ministries:

State Ministry for National Development Planning (BAPPENAS)
Ministry of Environment and Forestry (KLHK)
Ministry of Energy and Mineral Resources (MEMR)
Ministry of Marine Affairs and Fisheries
Ministry of Agriculture
Ministry of Finance
Ministry of State-Owned Enterprises (MSOE)

The IKI Strategy

The IKI wants to maximise its impact on climate action and biodiversity conservation. To this end, it concentrates its funding activities on prioritised fields of action within the four funding areas. Another key element is the close cooperation with selected partner countries, especially with the IKI’s priority countries.

Click here for the IKI Strategy