Indonesia and UN Launch Climate Finance Initiative to Empower Smallholder Farmers
Indonesia, UN Launch Climate Finance Push to Empower Smallholder Farmers
10 Apr 2026 16:18 WIB
Voice of Indonesia
Key Points
Indonesia and the UN launch a joint climate finance program to strengthen smallholder farmers and promote climate-resilient agriculture.
The program focuses on expanding access to financing, climate-smart technologies, and sustainable farming practices in East Java and Lampung.
The initiative targets 15,000 farmers in East Java with training and aims to mobilize USD 205 million in financing.
RRI.CO.ID, Jakarta - Indonesia is stepping up efforts to shield smallholder farmers from the mounting risks of climate change, with the launch of a new UN-backed initiative aimed at transforming food systems through sustainable finance.
The Indonesian government and the United Nations in Indonesia unveiled the “UN Joint Program: Leveraging Finance to Scale Up Climate Resilient Food Systems” in Jakarta on Thursday, April 9, 2026.
The program will expand access to financial services and strengthen farmers’ capacity to adopt climate-smart practices, with a focus on East Java and Lampung.
Deputy for Food, Natural Resources, and Environment at the National Development Planning Agency (Bappenas), Leonardo A. A. Teguh Sambodo, said the initiative aligns with national priorities to drive food system transformation and sustainable development.
“This program is expected to boost farmers’ access to financing, encourage climate-smart agriculture, improve welfare, strengthen food security, and integrate with other priority programs such as Free Nutritious Meals,” he noted, as quoted by Antara.
At least 15,000 farmers in East Java will receive training in climate-resilient techniques, including water-efficient rice cultivation.
The program also integrates innovative financing mechanisms such as Indonesia’s climate insurance scheme and funding from the Environmental Fund Management Agency (BPDLH).
Farmers adopting sustainable practices will gain access to insurance and advanced technologies, including solar-powered irrigation.
Beyond training, the initiative seeks to mobilize USD 150 million (IDR 2.5 trillion) through Indonesia’s annual SDG Bonds, Green Bonds, and Green Sukuk to support sustainable farming and improve rice nutrition for 300,000 smallholders.
BPDLH is also expected to channel microfinance to 400 micro, small and medium enterprises (MSMEs) engaged in agro-silvo-pastoral projects that combine crops, forestry, and livestock.
Running from 2026 to 2027, the program will be led by the UN Food and Agriculture Organization (FAO) in partnership with IFAD, UNDP, and the UN Resident Coordinator’s Office. With an initial investment of USD 2 million, the UN aims to leverage USD 205 million in public and private financing.
“This joint program is designed to unlock more investment for smallholder farmers, women, and youth,” said FAO Representative in Indonesia and Timor-Leste, Rajendra Aryal.
The initiative is supported by the Joint SDG Fund, the UN Food Systems Coordination Hub, the European Union, and contributions from Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Monaco, the Netherlands, Norway, Poland, Portugal, South Korea, Saudi Arabia, Spain, Sweden, and Switzerland. ***
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