Zulkifli Hasan calls for private investment to bridge Indonesia's climate financing gap

At the Indonesia International Sustainability Forum (IISF) 2026, Coordinating Minister for Food Zulkifli Hasan addressed the significant economic threat posed by climate change, noting that Indonesia faces potential economic losses of up to Rp544 trillion.

To combat this, Hasan highlighted a major financing gap, stating that the state budget (APBN) is estimated to cover only about 30 percent of climate action requirements. The remaining 70 percent must be met through the participation of the private sector and international partners.

The government proposes closing this gap using five green growth engines and two primary investment gateways: the carbon market (Nilai Ekonomi Karbon) and Waste-to-Energy (PSEL) projects. Implementing a climate-resilient development strategy could potentially reduce national economic loss risks by 79.2 percent, or approximately Rp61.71 trillion. The strategy emphasizes protecting climate assets such as forests, peatlands, mangroves, oceans, and rice fields to support food security.