A success story from a remote village forest in Jambi echoed at the heart of the nation’s capital. At the 6th National Conference on Ecological Financing, hosted by the Civil Society Coalition for Ecological Financing (KMS PE), KKI Warsi shared real-life experiences from the Bujang Raba community forest managers as a model for community-based climate financing that delivers real and measurable impact.
The conference, held under the theme “Stepping into a New Paradigm: Innovation and Integrity for Transformative Green Financing”, took place from August 5–7, 2025, at Aryaduta Hotel, Menteng, Jakarta. The conference was attended by more than 200 stakeholders, including representatives from national and local governments, regional parliaments (DPRD), grassroots communities, civil society organizations, development partners, and the media.
In one of the thematic sessions, Ade Candra, from KKI Warsi presented “Ecological Financing Innovation: Community Carbon in the Bujang Raba Social Forestry Area”, an initiative based on village forest management by communities from five villages in the Bujang Raba landscape, Bungo District, Jambi. Since 2012, their commitment to protecting 7,291 hectares of forest has successfully halted deforestation and preserved the forest’s carbon functions.
This initiative underscores the success of voluntary carbon payment schemes (non-market carbon) as a form of community recognition for protecting ecosystems. The financial incentives received are used for school scholarships, forest patrols, strengthening village forest institutions, tree enrichment, and empowering women and youth.
“Community Carbon
is not just a financing scheme. It is a recognition of the community’s contribution in protecting the Earth from the climate crisis,” emphasized Ade Candra.
KKI Warsi’s presence at the forum served as an important reminder of the need for green financing schemes that favor grassroots communities while aligning with national climate targets. The Indonesian government has committed to reducing emissions by 31% independently and 43% with international support by 2030, as outlined in the Enhanced NDC document. Various supporting policies have been issued, including Presidential Regulation No. 98 of 2021 on the Carbon Economic Value and the establishment of the Environmental Fund Management Agency (BPDLH).
In his opening remarks, Deputy Minister of Environment and Forestry, Diaz Hendropriyono, emphasized the urgency of achieving net-zero emissions by 2050—faster than the previous 2060 target—which will require substantial and strategic green funding. Ecologically based financing schemes—such as TAPE, TAKE, and ALAKE—have become key instruments for providing fiscal incentives to regions that demonstrate a strong ecological conservation performance. Diaz also highlighted that every green funding instrument must generate real impact on environmental preservation and the well-being of vulnerable communities and ecological stewards.
As of 2025, 48 local governments had adopted the EFT (Ecological Fiscal Transfer) scheme, with Rp 529 billion disbursed—although this still covers only about 8.9% of all regions in Indonesia. One notable example is Merangin District in Jambi.
Climate finance is urgently needed to restore the environment and mitigate the impacts of climate change. However, the available budgets from the national (APBN) and regional (APBD) governments remain insufficient to meet the substantial demands of environmental recovery.
Joko Tri Harjanto, Director of BPDLH, highlighted that these limitations call for innovation in financing schemes. “Funds from APBN and APBD are not strong enough to fund environmental programs. Therefore, we need to think about and develop alternative sources, such as carbon funds, payments for ecosystem services (PES), corporate social responsibility (CSR), tree adoption programs, donor support, and others,” said Joko.
His statement emphasized that the response to the climate crisis cannot rely solely on conventional funding mechanisms—it requires multi-stakeholder collaboration and bold, sustainability-focused breakthroughs. Proven lessons, like those from Bujang Raba, should be replicated elsewhere.
The conference also marked the launch of the EFTIndonesia.org platform, the declaration of the Regional Green Parliament Caucus (KPHD), and the formulation of the KMS PE Advocacy Roadmap—collective steps to strengthen natural resource governance that are fair, participatory, and sustainable.