Jakarta, 9 October 2025 — Indonesia has strengthened its position in the global climate finance space through the hosting of the Indonesia Climate Financing Roundtable: Road to COP30. With the increased urgency for global climate action, Indonesia emphasized its ambition to help bridge the financing gap for climate adaptation and resilience, especially for emerging markets and developing economies.

Through the Indonesia Climate Financing Roundtable: Road to COP30, a multistakeholder forum that brings together the government, financial institutions, private sector, and international development partners, Indonesia has developed several national recommendations to encourage the mobilization of private capital in inclusive climate adaptation and resilience financing, emphasizing the potential of its national bioeconomy.

The event was organized by the Indonesia Impact Alliance (IIA),  which also serves as the secretariat of GSG National Partner Indonesia, in collaboration with the Koalisi Ekonomi Membumi (KEM) and Impact Investment Exchange (IIX) at the It Hutan Kota by Plataran, Central Jakarta, and attended by 29 participants, including representatives from government agencies, financial institutions, investors, accelerators and incubators, as well as international development partners. The discussion was structured into three main sessions: Context Building, Discovery Roundtables, and Collective Refinement, aimed at producing measurable, evidence-based recommendations aligned with Indonesia’s sustainable development priorities.

The outcomes of this dialogue will be included in a global report to be presented by GSG Impact at two major international forums: PRI in Person 2025 in São Paulo, Brazil, and COP30 in Belém, Brazil.

Key Recommendations: A New Direction for Climate Adaptation Finance

From a series of cross-sector discussions facilitated during the event, participants agreed on strategic recommendations representing Indonesia’s contribution to the global climate finance agenda:

  • For Private Sector and Local Financial Institutions
    To close the “missing middle” financing gap, stakeholders should:
  • Scale mid-ticket blended finance (USD 100,000–1 million) through pooled funds, first-loss guarantee structures, and cooperative models targeting climate adaptation and resilience projects.
  • Create resilience credit lines with concessional rates and bundled advisory support for MSMEs and mid-sized ventures, integrating supply-chain risk reduction mechanisms.
  • Diversify financial instruments by adopting gender-smart and climate-aligned financing instruments, including bonds and sukuk.
  • Leverage digital finance and transparent documentation systems to improve MSME eligibility, accountability, and impact measurement.

 

  • For Public Sector and Government
    To strengthen the national climate finance ecosystem, these roles should:

    • Institutionalize blended finance and de-risking policies by embedding grants, guarantees, and insurance within fiscal and regulatory systems to mobilize private capital at scale.
    • Enhance regulatory incentives and data systems by introducing climate lending quotas and policy, green capital benefits, and enabling more inclusive thematic bond and sukuk issuances, while developing standardized Measurement, Reporting, and Verification (MRV) systems and open-access registries for transparency and investor confidence.
    • Support SME ecosystem and pipeline growth through mapping climate-resilient MSME pipelines, creating enterprise classifications, and expanding public-private technical and capacity-building programs.

 

  • For Ecosystem Builders and Enablers
    To strengthen the enabling environment for climate finance:

    • Advance ecosystem capacity and aggregation platforms by clustering smaller ventures into investable portfolios, aligning business maturity with financing stages, and coordinating technical assistance and readiness support across regions.
    • Standardize and connect through shared incubation playbooks and recurring Regional Investment Matchmaking Forums that link green ventures with blended-finance facilities.
    • Enable collaboration and data sharing by developing joint innovation hubs, pooled guarantee schemes, shared due diligence systems, and open platforms connecting financiers, pipeline sponsors, and policymakers to improve efficiency and visibility.

 

  • Philanthropy and Development Partners
    Catalyze local innovation and de-risk early-stage climate solutions.

    • Further Align development and philanthropiccapital for catalytic financing by building partnerships between local and international foundations to design blended finance structures that crowd-in private capital.
    • Expand technical assistance and knowledge transfer through concessional funding for pilot programs, incubation, and focused support to develop bankable pipelines through provincial Resilience Roundtables, supported by customized due diligence playbooks.
    • Scale education and impact storytelling to counter greenwashing skepticism and strengthen global investor confidence through locally grounded, evidence-based narratives.

This reflects the strong commitment of Indonesia’s stakeholders to continue strengthening cross-sector collaboration, both nationally and globally, to deliver concrete action for sustainable climate finance. The dialogue also emphasized the importance of creating an impact financing ecosystem that includes vulnerable communities that are most affected by climate change while also leveraging bioeconomy potentials.

Atika Benedikta, Executive Director of Indonesia Impact Alliance, stated that “Financing for climate solutions, particularly for MSMEs and communities, must adopt an ecosystem-based approach. We should not only focus on providing commercial capital or grants, but also strengthen literacy, capacity building, and technological innovation to drive behavioral change and sustainable business models. In addition, non-commercial capital plays an essential catalytic role, supported by enabling conditions such as multi-stakeholder collaboration, risk mitigation, and the development of local talent.”

Fito Rahdianto, Executive Director of Koalisi Ekonomi Membumi (Earth-Centered Economy Coalition) explained that climate adaptation cannot rely on short-term projects, it must grow from ecosystems where farmers, MSMEs, companies, and local governments share both risk and return. KEM Companies Network experience in Tabanan, Bali shows that when we derisk the entire sustainable business ecosystem, not just one actor, adaptation becomes both bankable and scalable. This is the kind of locally grounded, practically tested model that Indonesia can proudly bring to COP30 that is rooted in community impact and ready to replicate.

“Indonesia has been a beacon of resilience and one of IIX’s key markets for driving gender-smart and climate-positive investment. With milestones such as the country’s first Orange Bond and the world’s first Orange Sukuk, Indonesia is showing how capital markets can empower women and communities while delivering measurable impact. Through the Orange Movement, we’re proving that gender inclusion and climate finance are not separate goals, they reinforce each other. There is no green without orange.” said Priyank Tiwari, Senior Director, Research & Government Relations of Impact Investment Exchange (IIX).

For organizations, investors, and development partners seeking to collaborate on advancing inclusive climate finance in Indonesia and across emerging economies, please contact the Indonesia Impact Alliance (IIA) at info@impactalliance.id, KEM salam@ekonomimembumi.co, and Impact Investment Exchange (IIX) at advisory@iixglobal.com to learn more.