Video: BPDLH’s Strategy for Managing Environmental Funds to Mitigate Disasters

Jakarta, CNBC Indonesia – Indonesia’s Ministry of Finance established the Environmental Fund Management Agency (BPDLH) in 2019 as a public service agency (BLU) to collect and distribute international funds. The funding is intended to accelerate carbon-emissions reduction programmes in support of the 2035 Second Nationally Determined Contribution (Second NDC) target.

BPDLH President Director Joko Tri Haryanto said that achieving the NDC target could not rely on the state budget (APBN) alone. The agency was therefore set up to mobilise international funding to support the programme.

Amid global geopolitical turbulence following the United States’ withdrawal from the Paris Agreement and tensions in the Middle East, global liquidity has become increasingly tight. Securing international grant funding has consequently come with requirements for a blended-finance approach, combining public and corporate funds.

BPDLH was established to meet these global requirements by raising funds from a range of sources, including international and multilateral funding, philanthropy and foundations. It also has the capacity to manage domestic funding from the state budget (APBN), regional budgets (APBD) and corporate social responsibility (CSR) programmes.

BPDLH currently manages funds across five environmental themes, including disaster mitigation and response before, during and after disasters. This work includes managing the Disaster Pooling Fund (PFB), one example being its use in response to flooding in Sumatra.

In 2026, BPDLH had 21 programmes and had completed 11 of them. How does the agency manage funding for disaster mitigation, including droughts and floods? The full discussion is in Crysania Suhartanto’s interview with BPDLH President Director Joko Tri Haryanto on CNBC Indonesia’s Squawk Box (Thursday, 15 October 2026).