State Budget Unable to Cover Conservation Costs, Government Relies on Blended Financing

REPUBLIKA.CO.ID, JAKARTA — The funding gap in national park management is prompting the government to seek financing sources beyond the state budget. Budget limitations are seen as hindering the optimisation of ecological functions as well as the economic benefits of conservation areas.

Director General of Natural Resources and Ecosystem Conservation at the Ministry of Forestry, Satyawan Pudyatmoko, stated that the funding needs for national parks far exceed the state budget’s capacity. “Suppose the needs are 100 percent, what we can fund from the state budget is only around 30 percent,” said Satyawan after the Task Force for Innovation in National Park Management Financing meeting on Wednesday (30/4/2026).

To bridge this gap, the government has formed the Task Force for Innovation in National Park Management Financing and is promoting blended finance schemes. This approach combines public, private, and philanthropic funds to expand conservation financing sources.

According to Satyawan, funding limitations impact suboptimal management of areas, both in preserving biodiversity and improving the welfare of surrounding communities. Utilisation of environmental services such as carbon, water, geothermal, and ecotourism is considered a potential alternative funding source.

He emphasised that community involvement is key to sustainable management. “Without benefits received by the community, national parks will be difficult to sustain,” said Satyawan.

The government is also developing financing schemes through the Environmental Fund Management Agency with instruments like the e-bio fund. Additionally, private sector involvement is strengthened through species conservation programmes and financing opportunities from carbon trading.

Presidential Special Envoy for Climate and Energy, Hashim Djojohadikusumo, affirmed that financing innovations do not shift the primary function of conservation. “Ecology before tourism. Tourism to support ecology,” said Hashim.

Thirteen national parks have been designated as pilot projects for implementing the new financing schemes. Additionally, two priority landscapes are also the focus of development to test innovative funding-based conservation models.