Indonesia Needs Rp794 Trillion Annually to Achieve Net Zero Emissions Target

Indonesia requires Rp794 trillion annually to achieve its net zero emissions target by 2060, according to the government. Deputy for Food, Natural Resources, and the Environment at the Ministry of National Development Planning/Bappenas, Leonardo A.A. Teguh Sambodo, explained that this substantial funding requirement cannot rely solely on government budgets. He emphasised the need for participation from the private sector and businesses to meet the financing needs of the green transition.

“We see the need for Rp794 trillion per year for Indonesia to gradually achieve this green zero emissions target, which we must address together. Public funding has already been allocated, but we must ensure participation from other funding sources, including businesses and companies, to collaborate and achieve the results,” Leonardo stated during the Signing of the Cooperation Agreement between BPDLH and Beneficiaries of the LCDI-ITF Project on Tuesday (14/4/2026).

In addition to financing, Leonardo highlighted the issue of access to green technology as a major challenge for Indonesia. According to him, discussions on the green economy are often hindered by limited knowledge of appropriate technologies to implement and the financial capacity to adopt them.

“Often, when we talk about the green economy, what always lags behind is our knowledge of the technology, and at the same time, our financial capacity to purchase, implement, and of course, our ability to create innovations,” he said.

Therefore, the government has provided the Innovation and Technology Fund (ITF) initiative, which is funding from a collaboration between the Indonesian Government through Bappenas and the UK Government through the Foreign, Commonwealth and Development Office (FCDO).

This fund is managed by the Badan Pengelola Dana Lingkungan Hidup (BPDLH/Indonesian Environment Fund - IEF) with the aim of testing and accelerating the application of innovative technologies and business models that support low-carbon development in Indonesia.

The ITF functions as a direct grant-based funding mechanism for projects with the potential to reduce greenhouse gas emissions through cross-sectoral approaches such as clean energy, sustainable agriculture and forestry, waste management, and coastal and marine ecosystems.

“With the ITF, at least we are trying to reduce one or several of the existing challenges, at least two: the first relates to funding. We hope the ITF can also create broad benefits, ensuring involvement from the community,” he said.

As is known, the Badan Pengelola Dana Lingkungan Hidup (BPDLH) of the Ministry of Finance has disbursed funding of Rp20.3 billion for four low-carbon innovation projects in various regions.

The project proposals submitted cover four main sectors, namely energy, waste, coastal and marine ecosystems, and the agriculture and forestry sector or Agriculture, Forestry, and Other Land Use (AFOLU).

In detail, BPDLH has allocated Rp5 billion for waste management in South Sulawesi, Rp4.9 billion for a project in the marine and coastal ecosystems sector in West Nusa Tenggara Province, Rp5 billion for an AFOLU sector project in Maluku Province, and Rp5.3 billion for an AFOLU project in West Java Province.