RI Receives Climate Change Funding Support From US Philanthropy Ford Foundation

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The Indonesian government through the Environmental Fund Management Agency (BPDLH) is said to have reached an agreement with the United States (US) philanthropic organization Ford Foundation regarding the environmental funding mechanism to address climate change.

BPDLH President Director Djoko Hendratto said the Ford Foundation's contribution will be focused on environmental improvements, which are expected to create a sustainable local business ecosystem and ultimately improve community welfare.

"Through the existing environmental funding mechanism, it is hoped that it can be used to encourage effective multi-stakeholder collaboration so that the achievement of emission reduction targets and low-carbon development commitments can be accelerated," he said in an official statement, Tuesday, March 29.

According to Djoko, this collaboration opens up greater opportunities in efforts to reduce greenhouse gas emissions and the impact of climate change.

"To meet these funding needs per year, the government needs to develop strategic steps to mobilize additional funds from other potential parties, such as by stimulating the involvement of the private sector and providing a governance design that is in line between the government and the private sector," he said.

On the same occasion, Director of the Ford Foundation Jakarta Alexander Irwan said that his party believes this support will contribute to the public-private partnership model to synergize various efforts in realizing climate justice.

"As the first international philanthropic organization to support the BPDLH program, we want to contribute to building a sustainable and accountable climate finance mechanism at the national level," he said.

"This is in accordance with our mandate and mission to work with various stakeholders at the national level in achieving various sustainable development targets," continued Alexander.

In the editorial notes, RI is targeting a 29 percent reduction in carbon emissions with its own efforts, and 41 percent with international cooperation.

Through this strategy, a budget of at least US$365 billion is needed to achieve a 29 percent carbon reduction. Meanwhile, the 41 percent target is believed to cost no less than US$495 billion.