Indonesia-UK Strengthen Low-Carbon Development through LCDI-ITF Funding
Indonesia and the UK are strengthening low-carbon development through funding for projects under the Low Carbon Development Initiative–Innovation and Technology Fund (LCDI-ITF).
The partnership involves the Indonesian Government through the Ministry of National Development Planning/Bappenas and the Environmental Fund Management Agency (BPDLH), alongside the UK Government via the Foreign, Commonwealth and Development Office (FCDO).
“The Innovation and Technology Fund represents how policies and planning can be implemented to create tangible impacts for low-carbon development in Indonesia,” said Deputy for Food, Natural Resources and the Environment at the Ministry of National Development Planning/Bappenas, Leonardo A.A. Teguh Sambodo, in Jakarta on Tuesday.
This strategic Indonesia–UK partnership, established since 2017, promotes evidence-based, inclusive, and sustainable development.
The LCDI-ITF initiative aims to identify and replicate technological solutions that reduce greenhouse gas emissions while driving inclusive economic growth.
The programme also supports the Trisula Pembangunan, as well as various national roadmaps such as the circular economy, blue economy, spice downstreaming, and regenerative agriculture.
From 283 proposals with a total submission value of Rp1.59 trillion, four initial-stage projects were selected with total funding of Rp20.33 billion, covering waste management, solar energy-based shrimp farming, sustainable spice processing, and rice agriculture decarbonisation.
BPDLH Chief Executive Joko Tri Haryanto emphasised that the primary focus is on implementation.
“Through this scheme, we aim to help innovations overcome the ‘valley of death’ so they can develop and deliver real impacts,” said Joko.
On the same occasion, Minister Counsellor (Development) at the British Embassy, Peter Rajadiston, stressed the importance of the social impacts of climate solutions. According to him, effective climate solutions must provide tangible benefits to communities.
“Therefore, LCDI-ITF promotes an approach that is not only focused on emission reductions but also on improving welfare, creating green jobs, and strengthening community resilience,” stated Peter.
This initiative reaffirms Indonesia’s commitment to integrating policies, innovative funding, and multi-stakeholder collaboration to drive inclusive and sustainable low-carbon development.
By 2024, Indonesia has recorded a potential emission reduction of 30.36 per cent through more than 29,000 cross-sectoral actions.
Looking ahead, LCDI-ITF is expected to serve as a pilot model that can be replicated nationally and strengthen Indonesia’s contributions to global climate change efforts through tangible local actions.
LCDI-ITF is also anticipated to ensure that successful innovations can be transformed into policies and investments with systemic impacts.