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UK grants US$7.27 M to support Indonesia’s forest carbon goals
[May 9, 2025]




The United Kingdom has expressed commitment US$7.27 million (Rp127 billion) to help Indonesia reach its FOLU Net Sink 2030 target − an ambitious national goal to achieve net carbon absorption in the forestry and land use sector.

The funding is being channeled through the Sustainable Landscape Investment Partnership in Indonesia, known locally as Kemitraan Investasi pada Bentang Alam Berkelanjutan (KIBAR).

The initiative is funded by the UK Foreign, Commonwealth & Development Office (UK FCDO) via a grant scheme, and is being implemented in collaboration with Indonesia’s Environmental Fund Management Agency (Badan Pengelola Dana Lingkungan Hidup or BPDLH) and the Global Green Growth Institute (GGGI).

Indonesian Minister of Forestry Raja Juli Antoni highlighted that the project will focus on strengthening the Social Forestry Program (Perhutanan Sosial), a key strategy for reducing deforestation while improving the welfare of communities living near forest areas.

“This partnership will promote sustainable forest management and generate direct economic benefits for forest-dependent communities,” Raja Juli said as quoted in a statement on Wednesday, May 7, 2025.

He noted that the program aims to boost local economies by increasing productivity, developing forest-based enterprises, and reinforcing Social Forestry Business Groups (Kelompok Usaha Perhutanan Sosial, or KUPS).

Joko Tri Haryanto, President Director of BPDLH, emphasized the importance of blended finance mechanisms such as the Revolving Fund Facility (Fasilitas Dana Bergulir, or FDB) for ensuring sustainable forest sector financing.

“Nature-based financing holds great promise in addressing climate finance challenges, especially for inclusive and sustainable community-level enterprises,” Joko said.

British Ambassador to Indonesia Dominic Jermey reaffirmed the UK’s support for Indonesia’s forest carbon roadmap, stressing that social forestry is essential for achieving both climate justice and community prosperity.

“We are proud to support the acceleration of sustainable practices that protect Indonesia’s forests and promote green economic growth,” Ambassador Jermey said.

The KIBAR initiative marks another step in strengthening Indonesia-UK cooperation on climate action, aligning both countries’ goals of environmental sustainability and equitable development.

Source: indonesiabusinesspost.com



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