Indonesia is expected to be among the top 5 economies in the world by 2030. With a population of 260 million people and consisting of 17,000 islands, it has significant natural resources. While Indonesia’s economy is growing at a steady pace, this high-growth rate poses many challenges, both social and environmental. Deforestation, emissions, rural electrification and poverty alleviation are just a few of these challenges.
Today, Indonesia’s financial sector is not geared towards these challenges – it favours economic growth above anything else – resulting in a lack of credit availability for projects that are commercially viable yet simultaneously address social and environmental challenges the country faces. There is also the need to look beyond aid in financing green growth, climate change mitigation, conservation and smallholder development objectives of Indonesia at scale.
To take advantage of the momentum, a multi-stakeholder group has established the Tropical Landscapes Finance Facility to bring long-term finance to projects and companies that stimulate green growth and improve rural livelihoods. The TLFF was launched by H.E. Darmin Nasution, Coordinating Minister for Economic Affairs at the Coordinating Ministry for Economic Affairs, Republic of Indonesia on 26 October 2016.