Jakarta, August 12, 2026 — The Indonesian Environmental Fund Management Agency (BPDLH) continues to expand access to climate financing through the Results-Based Payment (RBP) REDD+ Green Climate Fund (GCF) Output 2 project. As of August 2026, 34 provinces have accessed the funding, with total commitments reaching IDR 761.02 billion, equivalent to approximately 94.8 percent of the total allocation for provinces.

Under this financing scheme, Yayasan Relung Indonesia (Relung Indonesia) has been entrusted as one of the Intermediary Institutions (Lembaga Perantara/Lemtara) to support the implementation of RBP REDD+ GCF Output 2 Utilization Category II at the subnational level. Relung Indonesia is supporting five provinces: Central Java, Special Region of Yogyakarta, South Sumatra, East Nusa Tenggara, and West Nusa Tenggara.

The signing of the RBP funding agreement for West Nusa Tenggara on August 12, 2026, was part of a series of agreements signed for 10 provinces in 2026. The occasion also marked the expansion of Relung Indonesia’s engagement in supporting the implementation of climate financing at the regional level.

From Emission Reduction Results to Action on the Ground

RBP REDD+ is a results-based financing mechanism that provides incentives for achievements in reducing emissions from deforestation and forest degradation. Indonesia became the first country in the Asia-Pacific region to receive RBP financing from the GCF, amounting to US$103.78 million, in recognition of emission reductions totaling 20.25 million tonnes of CO₂ equivalent during the 2014–2016 period.

The funding is implemented through three outputs. Output 1 and Output 3 were implemented from 2021 to 2025, while Output 2 will continue through 2030, supporting beneficiaries at both the national and subnational levels. BPDLH serves as the institution responsible for managing and channeling the funding to support various environmental and climate action agendas across Indonesia.

Output 2 is aimed at strengthening sustainable forest governance while supporting emission reduction efforts and low-emission development. Its implementation has supported, among other initiatives, the expansion of access to Social Forestry covering more than 2 million hectares, the facilitation of more than 40 proposals for the recognition of customary forests, the strengthening of Social Forestry Business Groups (KUPS), the rehabilitation of approximately 3,000 hectares of forests and land, the strengthening of Forest Management Units (KPH), and capacity building for Community Fire Brigades (Masyarakat Peduli Api/MPA).

The support also includes strengthening the National Registry System (SRN), the Climate Village Program, and sustainable waste management. Overall, the RBP REDD+ GCF Output 2 project has reached approximately 1,266 villages and 225 districts across Indonesia.

KP II and the Intermediary Institution Mechanism

Under the RBP REDD+ GCF Output 2 Utilization Category II project, the use of funding is divided into several categories. One of these is Utilization Category II (KP II), or Result-Based Payment for Verified Emission Reductions, which is allocated at the subnational or provincial level. In accordance with Ministerial Decree No. 673 of 2023, as well as technical provisions reinforced through Circular Letter No. 1 of 2024 of the Director General of Climate Change Control on the Utilization of RBP REDD+ GCF Output 2 Funds, KP II is one of the five utilization categories under Output 2, with an allocation of 56.25 percent.

KP II has a different mechanism from direct disbursement schemes for beneficiaries under other categories. Under KP II, funding for provincial governments is channeled indirectly through Intermediary Institutions (Lemtara). This mechanism enables the management of funding at the provincial level to be supported by intermediary institutions operating in accordance with the project’s applicable rules and procedures.

As part of the process, provincial governments and Lemtara may jointly prepare a concept note and funding proposal as part of the funding application process. Following assessment and approval, Lemtara supports program implementation, monitoring, and reporting in accordance with the approved proposal and applicable requirements.

This mechanism differs from Utilization Category I (KP I), which uses a direct disbursement mechanism for relevant beneficiaries. In this context, Lemtara plays an important role in bridging the financing mechanism with program implementation at the provincial level.

Relung Indonesia Supporting Five Provinces

As one of the Lemtara, Relung Indonesia has been entrusted to support the implementation of RBP REDD+ GCF Output 2 KP II in five provinces: Central Java, Special Region of Yogyakarta, South Sumatra, East Nusa Tenggara, and West Nusa Tenggara.

These five provinces have diverse landscapes, social conditions, institutional contexts, and natural resource management challenges. As a result, program implementation requires approaches that take into account the specific context and needs of each region.

In its role as an Lemtara, Relung Indonesia supports program implementation in accordance with the RBP REDD+ GCF Output 2 framework, including planning, coordination, program management, monitoring, and reporting. At the same time, the support is intended to ensure that programs respond to regional needs and deliver relevant benefits for communities and the environment.

The signing of the agreement for West Nusa Tenggara represents an important milestone in this process. With West Nusa Tenggara now included among the areas it supports, Relung Indonesia has been entrusted to support the implementation of KP II across five provinces with diverse regional characteristics and development challenges.

Ensuring Results-Based Financing Delivers Impact

To date, 34 of Indonesia’s 38 provinces have accessed RBP REDD+ GCF Output 2 funding. In 2026, 10 proposals from 10 provinces were assessed and entered the preparation stage for implementation, followed by the signing of funding agreements on August 12, 2026.

This progress demonstrates the expanding access of provinces to financing that supports emission reduction and environmental management agendas. However, the success of the program is determined not only by the amount of funding disbursed, but also by the quality of its management and the benefits generated at the regional level.

For Relung Indonesia, being entrusted as an Lemtara across five provinces is both a responsibility and an opportunity to help ensure that the process is carried out in an accountable, transparent, participatory, and results-oriented manner.

Through its support at the subnational level, Relung Indonesia is committed to strengthening the links between climate financing, policy, knowledge, regional institutions, and community action. Through this approach, RBP REDD+ GCF Output 2 Utilization Category II financing is expected not merely to achieve program indicators, but also to contribute to long-term efforts to strengthen forest governance, reduce emissions, build regional capacity, and deliver sustainable benefits for communities.

Contributor:

Media Relung