Climate Change Budget Allocation and Realization Continues to Decline

The Indonesian government allocated Rp307.94 trillion (approximately US$21 billion based on 2020 exchange rates, note that the actual USD equivalent will vary depending on the year's exchange rate) for climate change from 2018 to 2020. This translates to an average annual allocation of Rp102.65 trillion (approximately US$7 billion based on 2020 exchange rates), or 4.3% of the State Budget (APBN).

However, the allocation and realization of the climate change budget have decreased over the past three years. In 2018, the ministry/agency budget for climate change reached Rp132.4 trillion (approximately US$9 billion based on 2020 exchange rates).

This amount decreased to Rp97.66 trillion (approximately US$7 billion based on 2020 exchange rates) in 2019 and further decreased to Rp77.81 trillion (approximately US$5 billion based on 2020 exchange rates) in 2020.

Meanwhile, the realization of the climate change budget was Rp126.04 trillion (approximately US$9 billion based on 2020 exchange rates) in 2018, equivalent to 95.14% of the total budget for that year.

This figure decreased to Rp83.54 trillion (approximately US$6 billion based on 2020 exchange rates) in 2019, equivalent to 85.54% of the total budget for that year.

The government allocated Rp77.81 trillion (approximately US$5 billion based on 2020 exchange rates) for climate change mitigation and adaptation in accordance with Presidential Regulation No. 72/2020. Although the budget allocation and realization have shown a downward trend, this demonstrates the government's continued commitment to promoting low-carbon and climate-resilient development.