Indonesia spent an average of IDR 73.5 trillion per year on climate-related programmes over 2018–2024, representing roughly 3% of the national budget. The figure was presented by the acting Director General for Financial Sector Stability and Developmentat the Ministry of Finance, Herman Saheruddin, speaking at the Maybank Indonesia Sustainable Finance Forum 2026 in Jakarta on Tuesday.
Saheruddin simultaneously highlighted a stark structural shortfall. National planning agency data indicate that achieving net-zero emissions by 2060 would require Indonesia to mobilise between IDR 794 trillion and IDR 800 trillion annually — roughly ten times the current level of public climate expenditure. He framed the state budget not as a terminal solution but as a mechanism to reduce investment risk, strengthen investor confidence, and catalyse far greater private-sector participation.
The Ministry of Finance’s climate finance architecture spans both public and private channels. On the public side, it includes instruments such as green sukuk, SDG bonds, blue bonds, and a disaster pooling fund. Beyond that, the government is actively encouraging expanded roles for the banking sector, capital markets, carbon markets, and blended finance vehicles, with international cooperation through multilateral development banks, bilateral donors, and international financial institutions also forming part of the funding mix.
Carbon Market Context
- Carbon markets are explicitly named by the Ministry of Finance as one of the channels it intends to scale, sitting alongside banking, capital markets, and blended finance in the government’s multi-pillar strategy — underscoring the role carbon trading mechanisms are expected to play in closing Indonesia’s estimated IDR 720-plus trillion annual climate financing gap between current public outlays and the level the government says is needed for its 2060 net-zero target.
Source
- Pemerintah habiskan rata-rata Rp73,5 triliun belanja iklim per tahunKantor Berita ANTARA, published 2026-06-30