Financial needs to reach the climate goals Indonesia 2030, by sector

To reach the 2030 climate goals according to the Paris Agreement target, Indonesia would need at least 281.25 billion U.S. dollars. Over 87 percent of these estimated financial supports will be used for the transformation of Indonesia’s energy and transportation sector.

Indonesia’s climate targets

Indonesia is currently one of the world’s largest greenhouse gas emitters. According to Indonesia’s latest Nationally Determined Contribution (NDC) document in July 2021, Indonesia has an emissions reduction target of 29 percent by 2030 compared to business as usual with its efforts, and 41 percent by 2030 with international assistance. As of September 2021, Sri Mulyani, Indonesia's Minister of Finance, stated that the country will require at least 4.52 quadrillion Indonesian rupiah to reach the 2030 NDC target.

Climate finance in Indonesia

To reach these targets, the Indonesian Government recently issued a Presidential Regulation on Carbon Pricing Instrument for NDC Achievement. From July 2022, Indonesia will implement a carbon tax of 30 Indonesian rupiah per kilogram of CO₂-equivalent (CO₂e), or 2.10 U.S. dollars per ton of CO₂e. In addition to its domestic efforts, Indonesia received 3.16 billion dollars from a range of nations and development agencies between 2017 and 2019 for its climate initiatives. However, the majority of the financial agreements for climate change mitigation in Indonesia were loans with terms, with only a small portion being grants.