The Indonesian government has allocated Rp1 trillion (approximately US$67 million) for ecology-based fiscal transfers in 2023.

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Nabilah Muhamad 10/11/2023 18:44 WIB

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The central government has allocated ecological fiscal transfer funds with a budget ceiling of Rp1.04 trillion in 2023.

Indonesia's Ecological Fiscal Transfer Allocation Budget (2023)

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The Indonesian government has allocated Rp1 trillion (approximately US$67 million) for ecology-based fiscal transfers in 2023.

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Indonesia's Ecological Fiscal Transfer Allocation Budget (2023)

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To respond to climate change and promote sustainable development, the Indonesian government implements an ecological fiscal transfer (EFT) policy.

EFT is a top-down fiscal transfer mechanism from government institutions, such as from the central government to provinces, from provinces to regencies/cities, and from regencies/cities to village levels, allocated based on ecological performance.

According to a report from the Directorate General of Fiscal Balance of the Ministry of Finance (Kemenkeu), the central government allocated Rp1.04 trillion (approximately USD 69 million) for ecological fiscal transfers or EFT in 2023.

These funds are allocated through several instruments, such as Revenue Sharing Funds (DBH), Special Allocation Funds (DAK), and incentives.

In 2023, the largest EFT allocation was through DBH for Forestry Natural Resources and DBH for Reforestation, with a budget of Rp735.06 billion (approximately USD 49 million).

At the provincial level, these funds can be used for forest and land rehabilitation, forest and land fire control, and the development and management of non-timber forest products.

At the regency/city level, these funds can be used for the development and management of national parks, the development and management of green open spaces, and biodiversity management.

Besides DBH, in 2023 the government allocated ecological-based transfer funds through the Physical DAK for Environment and Forestry (LHK) instrument with a budget of Rp189.96 billion (approximately USD 13 million) for 90 recipient regions.

Furthermore, the EFT allocation budget through Non-Physical DAK for Waste Management Service Cost Assistance (BLPS) was Rp65.83 billion (approximately USD 4.4 million), and through Fiscal Incentives for Waste Management was Rp54.1 billion (approximately USD 3.6 million).

"An ecology-perspective fiscal decentralization policy can support sustainable economic development," stated the Kemenkeu team in the *Regional Economic & Fiscal Development Report, Green Economy 2023*.

"Through regional autonomy in financial and resource management, local governments can provide greater support for innovation and investment in new energy technologies that have a positive impact on the environment and the socio-economic welfare of the community," it continued.

(Also read: [Drive Environmental Improvement, BPDLH Disbursed Rp74.8 Billion in 2022](https://databoks.katadata.co.id/datapublish/2023/11/10/dorong-perbaikan-lingkungan-bpdlh-salurkan-dana-rp748-miliar-pada-2022))

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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The Indonesian government has allocated Rp1 trillion (approximately US$67 million) for ecology-based fiscal transfers in 2023.

The Indonesian government has allocated Rp1 trillion (approximately US$67 million) for ecology-based fiscal transfers in 2023.

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The Indonesian government has allocated Rp1 trillion (approximately US$67 million) for ecology-based fiscal transfers in 2023.

The Indonesian government has allocated Rp1 trillion (approximately US$67 million) for ecology-based fiscal transfers in 2023.

Tags

Related Data

Indonesian Land Controlled by Forestry Plantation Companies Increases Until 2024

Aceh, North Sumatra, and West Sumatra Hit by Tens to Hundreds of Disasters Every Year

272 People Died Due to Disaster in Aceh, Here's the Distribution (December 4, 2025)

295 Deaths from Floods and Landslides in North Sumatra, Here's the Breakdown (December 4, 2025)

Floods and Landslides in West Sumatra Claim 200 Lives, Here's the Breakdown (December 4, 2025)

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