Finance Ministry Reveals Rp73.5 Trillion Annual Climate Budget, Urges Private Sector Role

The government’s average annual expenditure to address climate issues reached Rp73.5 trillion during the 2018-2024 period, according to the Ministry of Finance. Herman Saheruddin, Acting Director General of Budget Financing and Risk Management, stated that climate-related spending accounts for approximately 3% of the state budget (APBN), with average annual outlays exceeding Rp70 trillion. Speaking at the Maybank Indonesia Sustainable Finance Forum 2026 in Jakarta on Tuesday, he said this figure reflects the government’s strong commitment to tackling climate challenges. However, he noted it also highlights the significant climate financing gap. Data from the National Development Planning Agency (Bappenas) indicates that Indonesia requires between Rp794 trillion and Rp800 trillion per year to achieve its Net Zero Emission (NZE) target by 2060. Herman emphasised that public spending should not be viewed as the ultimate solution but rather as a catalyst to encourage greater private sector participation. The government positions the state budget not as the primary source of climate financing, but as a tool to reduce investment risk, strengthen investor confidence, and drive broader private sector involvement. He expressed confidence that sustainable development can only succeed if the government and market players build solid cooperation to address climate issues, as a comprehensive, diversified, and collaborative financing ecosystem is needed to realise Indonesia’s climate targets.