Indonesia’s extensive tropical rainforests, peatlands, and significant forest carbon stock make the nation essential to global climate stabilization. In recent years, Indonesia has pioneered one of the world’s most transformative fiscal initiatives for forest conservation. Launched in 2023, the new fiscal transfer prioritizes forest conservation through a unique forest cover indicator, making up 15% of the overall formula that determines fund allocation to sub-national governments. This policy underscores Indonesia’s commitment to preserving its vast ecosystems and aligns with global climate action goals.

The Center for Climate and Sustainable Finance (CCSF) at the University of Indonesia estimates that this forest- based fiscal transfer mobilized around $1 billion to local governments in its inaugural year, making Indonesia the largest contributor to a REDD+ fund worldwide. However, the effective allocation of these funds remains a challenge, necessitating strong governance and oversight. In this regard, Indonesia’s Audit Board (BPK) is crucial for safeguarding fund integrity and ensuring fiscal transfer funds are responsibly managed to combat deforestation and drive sustainable management.

Beyond fiscal policy, breakthroughs in addressing climate impacts require contributions across sectors. The private sector, particularly the automotive industry, is integral to this strategy. Automotive companies like Astra are working to minimize environmental footprints by reducing waste and adopting more sustainable practices. This aligns with Indonesia’s conservation goals under the new fiscal transfer program, showing how industry can support national environmental resilience. Forest conservation efforts are further strengthened by global actors such as the Packard Foundation, which collaborates in regions like the Democratic Republic of Congo (DRC) to champion sustainable practices and ecosystem protection. Together, these efforts reflect a comprehensive approach to addressing climate impacts on a global scale, spanning from forest and waste management to innovative financing.

These intersecting initiatives not only demonstrate Indonesia’s leadership in climate solutions but also serve as a model for the Global South. By fostering collaboration across the public and private sectors, Indonesia is able to address both local and global climate challenges in a holistic manner. The combination of rigorous fiscal policies, private sector involvement in waste reduction, and international collaboration for forest protection exemplifies a comprehensive approach to climate resilience. COP29 provides a crucial platform for showcasing these breakthroughs, aiming to inspire similar multi-faceted efforts worldwide and emphasize the importance of collaboration in achieving climate goals.

At COP29, CCSF UI aims to bring together finance, governance, and industry leaders to showcase these multi-sectoral solutions, with three objectives: (1) sharing Indonesia’s unique fiscal innovations in forest conservation with the Global South, (2) inviting practitioners and researchers to strengthen partnerships for climate action, and (3) exploring new collaborative opportunities in sustainable ecosystem management.