{"id":12730,"date":"2026-06-30T14:36:08","date_gmt":"2026-06-30T07:36:08","guid":{"rendered":"https:\/\/kemitraan.or.id\/?post_type=press-release&p=12730"},"modified":"2026-06-30T14:39:06","modified_gmt":"2026-06-30T07:39:06","slug":"climate-adaptation-financing-opportunities-expand-but-access-remains-a-challenge","status":"publish","type":"press-release","link":"https:\/\/www.kemitraan.or.id\/en\/press-release\/climate-adaptation-financing-opportunities-expand-but-access-remains-a-challenge\/","title":{"rendered":"Climate Adaptation Financing Opportunities Expand, but Access Remains a Challenge"},"content":{"rendered":"\n
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Jakarta, 24\u201325 June 2026.<\/strong> Global financing for climate change adaptation programs is entering a new phase. As international funding institutions increasingly prioritize adaptation, Indonesia has greater opportunities to access climate finance. However, these opportunities can only be realized through high-quality program design, robust data, and strong collaboration among government institutions, civil society, the private sector, and funding organizations.<\/p>\n\n\n\n

This message emerged during the plenary session titled “Sustainable Financing for Climate Change Adaptation in Indonesia” at the National Seminar “Sustainable Climate Resilience: Lessons Learned from Five Adaptation Fund Projects in Indonesia,”<\/strong> organized by KEMITRAAN in collaboration with the Ministry of Environment\/Environmental Control Agency.<\/p>\n\n\n\n

Director of Climate Change Adaptation, Franky Zamzami, delivering remarks on behalf of the Minister of Environment\/Head of the Environmental Control Agency, emphasized the urgent need to strengthen adaptation capacity, particularly for Indonesia as an archipelagic nation that is highly vulnerable to the impacts of climate change.<\/p>\n\n\n\n

According to Franky, climate change not only increases the frequency and severity of extreme weather events and disasters but also threatens food production, water availability, public health, energy security, and biodiversity.<\/p>\n\n\n\n

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“In addition to extreme climate events that trigger disasters, climate change is projected to affect food production, water availability, increase the incidence of climate-related diseases such as dengue fever, malaria, and acute respiratory infections, undermine energy security, and accelerate biodiversity loss,” he said.<\/p>\n<\/blockquote>\n\n\n\n

He added that the challenge lies not only in the growing impacts of climate change but also in the significant financing gap. Referring to the UNEP Adaptation Gap Report 2025, global adaptation financing needs are estimated to be 12 to 14 times greater than the funding currently available.<\/p>\n\n\n\n

Against this backdrop, international financing mechanisms such as the Green Climate Fund (GCF) and the Adaptation Fund (AF) present important opportunities to strengthen the resilience of communities facing climate change.<\/p>\n\n\n\n

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“Global financing mechanisms such as the GCF and the Adaptation Fund can serve as alternative funding sources. Through the Adaptation Fund, Indonesia has successfully accessed adaptation financing through its nationally accredited entity, KEMITRAAN,” Franky said.<\/p>\n<\/blockquote>\n\n\n\n

He also encouraged more national institutions to pursue accreditation in order to broaden Indonesia’s access to international climate finance.<\/p>\n\n\n\n

A similar view was expressed by Kardono, Coordinator of the Climate Change Adaptation Planning and Development Working Group at the Ministry of Environment. He noted that while international funding opportunities for climate adaptation in Indonesia are substantial, accessing them requires considerable time and institutional capacity.<\/p>\n\n\n\n

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“The greatest challenge in accessing international climate finance lies in its lengthy and complex procedures. Preparing concept notes, developing full proposals, and completing the approval process can take several years,” he explained.<\/p>\n<\/blockquote>\n\n\n\n

Meanwhile, President Director of the Environmental Fund Management Agency (BPDLH), Joko Tri Haryanto, emphasized that the country’s growing financing needs cannot rely solely on the national and regional budgets. Instead, Indonesia must optimize funding from both domestic and international sources.<\/p>\n\n\n\n

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“Our primary responsibility is to mobilize financial resources from domestic and international sources\u2014including multilateral and bilateral institutions, philanthropic organizations, and the private sector\u2014and channel them more flexibly to beneficiaries,” he explained.<\/p>\n<\/blockquote>\n\n\n\n

Joko stressed that strengthening climate finance requires collaboration among multiple stakeholders. According to him, BPDLH is not intended to replace the role of civil society organizations but rather to complement their efforts.<\/p>\n\n\n\n

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“We complement one another. We need NGOs as implementation partners, just as NGOs need BPDLH as a financing institution. One example is KEMITRAAN, which serves as BPDLH’s Intermediary Institution while also being an accredited entity of the Green Climate Fund,” he said.<\/p>\n<\/blockquote>\n\n\n\n

In addition to managing Indonesia’s Disaster Endowment Fund, BPDLH is developing financing schemes for mangroves, blue carbon, and blue financing while expanding support for adaptation initiatives at the community level.<\/p>\n\n\n\n

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“Through our Community Funding Services program, BPDLH also provides financing access for individuals, community groups, Indigenous Peoples, social forestry groups, and environmental award recipients through small grants,” he added.<\/p>\n<\/blockquote>\n\n\n\n

Meanwhile, Ruhadiantama Wicaksono, the National Designated Authority (NDA) for the Green Climate Fund at the Ministry of Finance, explained that current policy directions are placing increasing emphasis on adaptation.<\/p>\n\n\n\n

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“Starting in 2026, the Green Climate Fund has promoted a more balanced allocation between mitigation and adaptation, making adaptation projects an increasingly important priority,” he said.<\/p>\n<\/blockquote>\n\n\n\n

According to Ruhadiantama, this policy shift creates greater opportunities through Indonesia’s two national Direct Access Entities, KEMITRAAN and PT Sarana Multi Infrastruktur (PT SMI)\u2014which can serve as entry points for accessing GCF financing.<\/p>\n\n\n\n

However, he also cautioned that these opportunities must be matched by adequate institutional readiness.<\/p>\n\n\n\n

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“Although the Green Climate Fund offers considerable financing flexibility, the application process is far from simple. Applicants must meet numerous requirements, including environmental, social, and governance safeguards, as well as coordination with ministries, local governments, NGOs, and other stakeholders,” he explained.<\/p>\n<\/blockquote>\n\n\n\n

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KEMITRAAN Executive Director Nurina Widagdo added that her organization’s experience demonstrates that the availability of funding alone is not sufficient to secure climate finance.<\/p>\n\n\n\n

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“Our experience shows that access to climate finance depends not only on the availability of funding but also on the readiness of institutions submitting proposals. Many requirements must be fulfilled before an international donor approves a proposal,” she said.<\/p>\n<\/blockquote>\n\n\n\n

According to Nurina, the quality of project planning is among the most critical success factors. Proposed programs must address community needs while aligning with national development priorities. Supporting data, project design, and monitoring and evaluation systems must also be well prepared from the outset.<\/p>\n\n\n\n

She further emphasized that successful climate adaptation cannot be achieved by a single institution alone.<\/p>\n\n\n\n

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“Climate adaptation programs are unlikely to succeed if implemented by only one institution. They require the active participation of the national and local governments, communities, academia, the private sector, and civil society organizations to ensure lasting and sustainable impacts,” she said.<\/p>\n<\/blockquote>\n\n\n\n

Representing the private sector, Halim Kalla, Vice Chair for Green Industry at the Indonesian Chamber of Commerce and Industry (KADIN), expressed hope that future climate resilience financing mechanisms would provide greater opportunities for private sector participation through more accessible financing schemes and investment incentives.<\/p>\n\n\n\n

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“Going forward, we hope to see more financing mechanisms that actively involve the private sector, making investments in both climate adaptation and mitigation programs more attractive and enabling them to grow at a much larger scale,” he concluded.<\/p>\n<\/blockquote>\n\n\n\n