Jakarta, 8 Feb. 2023 – Indonesia, home to the world’s third largest tropical rainforest, has received a first disbursement of IDR 718.462.147.050 (USD 46 million*) from the USD 103.8 million approved by the Green Climate Fund (GCF), following the success in emission reduction from forestry sector in the 2014 to 2016 period.
The United Nations Development Programme (UNDP) has transferred the funds to the Indonesian Environment Fund (IEF), which has a mandate to manage environment funds. The IEF was officially formed to channel environmental and climate funds to support achievement of Indonesia’s Nationally Determined Contribution (NDC) commitments to achieve net-zero emissions by 2060, by reducing Green House Gas (GHG) as part of the global mandate and commitment to combating climate change.
The funds are part of Indonesia’s results-based payment (RBP) for emission reductions through REDD+ implementation by the GCF. UNDP’s role, as GCF accredited entity and also a trusted partner of the IEF and the Government of Indonesia for the NDC programmes, is to facilitate the payment by using UNDP’s Performance-Based Payment (PBP) modality, which aims to maximize transparency and effectiveness of the funds.
This innovative project management approach also enabled faster disbursements from UNDP to Indonesia than a conventional project management would allow, without compromising the quality of implementation and the intended use of proceeds.
The funds will accelerate and strengthen REDD+ implementation; and also contribute towards the country’s Forest and Land Use (FOLU) Net Sink 2030 Operational Plan, which is a pivotal component of the country’s enhanced NDC in 2022.
The funds mark the validation of results by an independent team, which shows progress in all five PBP indicators reviewed for 2022.
This achievement demonstrates Indonesia's response to the threat of climate change, and reflects international recognition and increased confidence of national undertaking of sustainable forest management and conservation efforts.
In line with the statement of the Minister of Environment and Forestry in IEF National Coordination Meeting, she emphasized that Indonesia should focus on rehabilitation and restoration of land area by involving community and other stakeholders. Result-based payment received by Indonesia should be a stimulant other measures in rehabilitating and restoring degraded area.
The Minister of Finance at the same moment pointed out that the MoF supports the MoEF to take action in continuing the emission reduction measures from deforestation and forest degradation. She highlights that IEF as the fund manager has a mandate to manage and disburse, the fund from the GCF REDD+ results-based payments as mandated in agreement.
In allocating the GCF REDD+ RBP, the Ministry of Environment and Forestry will be responsible for providing strategic directives of activity implementation to producing outputs that are agreed upon by both parties. Which aligns with the National REDD+ strategy, also including the priority programs of the MoEF. Meanwhile, the Ministry of Finance, through the IEF will be responsible for managing, monitoring and evaluating activities and funds implementation.
“This is a milestone for Indonesia in its efforts to meet its climate pledge, notably in establishing REDD+ initiatives as a catalyst for sustainable development. With the increased impact of the climate crisis, the next decade provides yet another critical moment for Indonesia and the world in ensuring that we can sustainably manage our forests and land while also improving community livelihoods,” said UNDP Indonesia Resident Representative, Mr. Norimasa Shimomura.
1. First dirsbursement was made in December 2022 amounting IDR 440.720.000.000 (equivalent to USD 28.152.028. UNORE IDR 15.655)
2. Second disbursement was made in January 2023 amounting IDR 277.742.147.050 (equivalent to USD 17.941.999. UNORE IDR 15.480)
UNDP Indonesia Senior Advisor for Climate Governance, Abdul Situmorang firstname.lastname@example.org
UNDP Indonesia Communications Specialist, Tomi Soetjipto, email@example.com
Kin Yii (Celina) Yong, UNDP Senior Regional Technical Advisor and Stakeholder Engagement Specialist, Asia and the Pacific, firstname.lastname@example.org