December 3, 2025 | 03:53 pm
TEMPO.CO, Jakarta - The government stated that Indonesia requires $757.6 billion in financing by 2035 to meet its climate change goals. This was conveyed by the Minister of National Development Planning/Head of the National Development Planning Agency (Bappenas), Rachmat Pambudy.
This funding, equivalent to Rp12.6 quadrillion, aligns with Indonesia's commitments to the Enhanced and Secondary Nationally Determined Contributions by 2035.
“Compared to the current climate-related budget allocation, it only reaches three percent of the APBN (state budget),” Rachmat said at the launch of the Technology Innovation Fund and Climate Resilient Solutions Study at the Bappenas building in Jakarta on Tuesday, December 2, 2025, as quoted by Antara.
From 2016 to 2024, the government's annual climate spending averaged US$4.4 billion, or 3 percent of the state budget. This indicates that a significant climate funding gap remains.
The 30th United Nations Climate Change Conference (COP30), held in Belem, Brazil, prioritized global climate financing to combat climate change.
Several agreed points included the target of mobilizing global climate financing through the New Collective Quantified Goal on Climate Finance (NCQG) to reach US$1.3 trillion per year by 2035, a threefold increase in adaptation funding by 2035, and the establishment of the Tropical Forest Forever Facility with an initial funding of around US$6.7 billion.
This situation requires Indonesia to strengthen its governance, programs, and projects to mobilize investment funding. Furthermore, initial climate-related investments should be directed towards scalable low-carbon technologies that open up significant economic opportunities.
According to the World Resources Institute (WRI), in 2025, every US$1 invested in climate adaptation will yield over US$10 in benefits over 10 years.
Furthermore, testing and demonstrations should serve as a bridge between ideas and implementation. In 2021, the International Energy Agency (IEA) stated that 50 percent of the emissions reduction by 2050 will come from technologies currently in the prototype stage.
Lastly, data and evidence are considered the foundation for targeted and equitable action. According to data from the Intergovernmental Panel on Climate Change (IPCC) from 2022, the data risk gap poses the greatest challenge to adaptation, diminishing the effectiveness of local-level interventions.
In response to these circumstances, Rachmat emphasized the need to launch the Innovation and Technology Fund (ITF), the Climate Resilient Development (PBI) documents, and a study on the impact of climate change on population displacement in coastal and small island regions in Indonesia. "This reaffirms Indonesia's major direction for future development."
The ITF is a funding mechanism to support the implementation of low-carbon development at the provincial level. It is also presented as a financing bridge that drives innovation and technology with the potential to provide solutions for Indonesia's climate risk adaptation and mitigation efforts.
This funding is expected to support innovation and technology-based projects that can deliver multiple benefits. The Innovative Development Fund will facilitate collaboration in ITF distribution with various other development funding missions, which is expected to strengthen contributions and achieve broader development targets.
Rachmat expressed high appreciation to the governments of the United Kingdom and Germany, the United Nations Development Programme (UNDP), the Ministry of Environment and Forestry, the Ministry of Maritime Affairs and Fisheries, and several other ministries that have consistently committed to addressing climate issues.
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