Boosting Environmental Improvement, BPDLH Disbursed Rp74.8 Billion in 2022

The Indonesian Environmental Fund Management Agency (BPDLH) is an agency established by the Indonesian government in 2019, with the main task of managing and disbursing funds to support environmental sustainability.

According to its performance report, throughout 2022, BPDLH disbursed approximately Rp74.8 billion (approximately USD 4.9 million based on the average 2022 exchange rate) for programs related to environmental improvement, climate change mitigation, and economic support for communities around forests.

In 2022, BPDLH funds were mostly channeled to the Reducing Emissions from Deforestation and Forest Degradation (REDD+) program through Result-Based Payment (RBP).

REDD+ is a program to reduce greenhouse gas emissions through efforts to halt deforestation and forest degradation, support forest conservation, and increase carbon stocks.

Result-Based Payment (RBP) is a mechanism for providing incentives or payments based on the achievements of greenhouse gas emission reductions that have been verified and/or certified.

Disbursement of BPDLH funds for REDD+ RBP throughout 2022 reached Rp40.98 billion (approximately USD 2.7 million), representing 55% of the total disbursement.

These REDD+ RBP funds were spent in accordance with the National REDD+ Strategy, aligned with the Enhanced Nationally Determined Contribution (ENDC) or Indonesia's commitment to reducing greenhouse gas emissions under the Paris Agreement.

"In 2022, the REDD+ RBP GCF Project (funding from the Green Climate Fund) helped facilitate the organization of more than 400 activities of the Ministry of Environment and Forestry (KLHK) and the Peatland and Mangrove Restoration Agency (BRGM) in the form of meetings, workshops, and training," wrote BPDLH in its 2022 Annual Performance Report.

In addition, in 2022, BPDLH disbursed Rp23.36 billion (approximately USD 1.5 million) (31%) for incentives and monitoring of rooftop solar power plant (PLTS) users.

Approximately Rp7.22 billion (approximately USD 0.5 million) (10%) was channeled to TERRA, a collaborative program between BPDLH and the Ford Foundation to support the welfare of communities around forests.

The TERRA program is implemented through the provision of financial support to indigenous peoples or local communities living in forest areas, to help them develop sustainable income that protects forests while reducing poverty.

Finally, in 2022, there was a disbursement of funds for World Bank Technical Assistance amounting to Rp3.26 billion (approximately USD 0.2 million) (4%), namely technical assistance services related to World Bank financing managed by BPDLH.