Indonesia shifts climate financing to private investors, targets financial independence for national parks

Indonesia's government is overhauling its climate and conservation funding to lessen reliance on the state budget. The Finance Ministry aims to make 13 national parks financially independent by 2030 by creating a nature‑finance model that uses biodiversity credits, species‑conservation bonds and public‑private partnerships. The move addresses an 87.1 % financing gap, with climate‑related spending covering only about 3 % of the state budget.

Acting Director General Herman Saheruddin said public spending will act as a catalyst to attract private capital, while President Prabowo Subianto’s task force, chaired by climate envoy Hashim Djojohadikusumo, will oversee the transition. Forestry Minister Raja Juli Antoni introduced the concept of “Natural Ecosystems as a New Asset Class,” treating forests and biodiversity as strategic assets that can generate revenue without harming ecological functions. A pilot program in Aceh’s Peusangan Elephant Conservation Initiative is testing the approach.

The strategy includes carbon and biodiversity credits, conservation bonds, ecotourism, sustainable forest products and collaborative management schemes to bridge the financing shortfall and support Indonesia’s Net Zero Emission target for 2060.