Indonesia has declared ambitious commitments in tackling the climate crisis. To achieve the goal of reducing greenhouse gas (GHG) emissions to carbon neutrality by 2045—as outlined in the Visi Indonesia Emas 2045—and to reach net zero emissions (NZE) by 2060, the government has undertaken various strategic steps. One of the main efforts includes raising the emission reduction target to 31.89% through domestic efforts and up to 43.20% with international support by 2030, as stated in the Enhanced Nationally Determined Contribution (E-NDC) document. In addition, the government has also issued the Long-Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR), which serves as a roadmap toward sustainable and climate-resilient national development.
This burning ambition will undoubtedly need a massive amount of financing. According to an analysis by Kearney, Indonesia needs approximately IDR 38,000 trillion to achieve NZE by 2060, or around IDR 800 trillion annually. This massive figure is far beyond what can be covered by the national budget (APBN) alone. Even more concerning is the 39.72% decrease in government spending allocation for environmental protection in the 2025 APBN, from IDR 14.1 trillion in 2024 to IDR 8.5 trillion in 2025. Facts also show that Low Carbon Development (LCD) in Indonesia still relies heavily on international funding due to the lack of national financing. Projects such as Household Energy Biogas Utilization in Magelang and Community-Based Watershed Rehabilitation in West Java, implemented as LCD pilot projects by the Ministry of National Development Planning (Bappenas), are funded by the Indonesia Climate Change Trust Fund (ICCTF).
However, the global landscape is shifting. Several developed countries, such as the United States, have begun pulling back from their climate commitments or reducing contributions to global financing mechanisms. The policy focus of many developed nations is increasingly turning toward geopolitical tensions, inflation, and shifting national political agendas. As a result, international climate finance pledges that have long supported developing countries, including Indonesia, are becoming more uncertain.
Meanwhile, domestically, the APBN allocation for climate-related agendas remains far from sufficient. The government faces multiple urgent priorities such as education, healthcare, social protection, and basic infrastructure development. In this tight fiscal environment, climate change is often seen as a “luxury thing”, which is something important but not yet urgent. Green financing is still in its early stages, and instruments like the Special Allocation Fund (DAK), Regional Incentive Fund (DID), and others for environmental performance have not yet shown substantial scale or impact.
Amid uncertainties in external funding and limitations in domestic fiscal space, we must ask ourselves: are the targets we have set still relevant and realistic? Is it reasonable for Indonesia to continue holding on to such ambitious figures if we are unable to finance most of the plans ourselves?
These questions are not rooted in pessimism but are a call for honest reflection on our current capacity. The climate crisis is indeed a global issue, but efforts to overcome it must begin with local awareness. Ambition without adequate resource backing will only result in symbolic policies with little real impact. More importantly, clinging to unrealistic targets may damage our credibility on the world stage—especially if implementation becomes sluggish or stagnant.
It is time for the Indonesian government to critically evaluate all existing climate targets and action plans. Developing strategies to strengthen domestic financing for low-carbon development, tailored to current conditions, is essential. Making adjustments does not mean giving up—it is a form of honesty and accountability.
