Global Outlook on Financing for Sustainable Development 2025 | OECD

How Indonesia Is Preparing for Climate Resilience in 2025

As climate change intensifies, Indonesia—a vast archipelago of over 17,000 islands—is proactively implementing strategies to bolster its resilience against environmental challenges. From rising sea levels to extreme weather events, the nation is adopting a multifaceted approach to safeguard its ecosystems, infrastructure, and communities.


1. Empowering Local Communities for Climate Adaptation

Indonesia recognizes the pivotal role of local communities in climate resilience. The government is channeling village funds towards climate change mitigation, enabling villages to implement initiatives like reforestation, water conservation, and sustainable agriculture. Villages are categorized based on their risk levels—red, yellow, or green—to prioritize resource allocation effectively Indonesia-Agent.com.


2. Nusantara: Building a Sustainable Capital

To address the environmental challenges facing Jakarta, including land subsidence and flooding, Indonesia is developing a new capital city, Nusantara, in East Kalimantan. Designed as a “green, smart, resilient, and inclusive” city, Nusantara aims to integrate climate action into its core planning. The city will utilize renewable energy sources, promote electric vehicles, and incorporate extensive green spaces to enhance sustainability.


3. Strengthening Coastal Defenses

Indonesia’s coastal regions are particularly vulnerable to sea-level rise. In response, the government is constructing the Giant Sea Wall Jakarta, a massive infrastructure project designed to protect the capital from flooding. Complementing these efforts, local communities are engaging in natural solutions. For instance, in Central Java, a resident named Pasijah has been planting thousands of mangrove trees annually to combat coastal erosion and protect her village from tidal surges.


4. Advancing Renewable Energy: The B40 Biodiesel Program

To reduce reliance on fossil fuels, Indonesia is implementing the B40 biodiesel program, which mandates a 40% blend of palm oil in diesel fuel. Set for full implementation in March 2025, this initiative aims to decrease greenhouse gas emissions and promote energy self-sufficiency. The government has increased the biodiesel allocation to 15.6 million kiloliters for 2025 and plans to raise the export levy on crude palm oil to support the program.


5. Integrating Climate Resilience into Healthcare

Acknowledging the health risks posed by climate change, Indonesia’s Ministry of Health, in collaboration with the UNDP and WHO, is working to build a climate-resilient health system. Funded by the Green Climate Fund, this initiative focuses on strengthening early-warning systems for climate-related diseases and reducing greenhouse gas emissions from healthcare facilities. The goal is to ensure that health services remain effective and sustainable amid environmental challenges.


6. Sub-National Climate Targets: A Collaborative Approach

Starting in 2025, Indonesia plans to implement greenhouse gas emission reduction targets at the provincial level. This decentralized approach encourages regional governments to take concrete actions aligned with national climate goals, fostering a more integrated and effective response to climate change across the country.


7. Low-Carbon Infrastructure Planning

Indonesia’s commitment to sustainable development is evident in its collaboration with international partners like the OECD and SIPA. Together, they are working to integrate low-carbon infrastructure planning into the 2025–2029 National Medium-Term Development Plan (RPJMN). This includes strategic investments in renewable energy, sustainable transportation, and green buildings to support the nation’s vision of becoming a sustainable and advanced economy by 2045.


8. Marine Conservation: The Coral Triangle Initiative

Indonesia plays a pivotal role in the Coral Triangle Initiative, a multilateral partnership aimed at preserving marine biodiversity and enhancing food security. The initiative’s Regional Plan of Action 2.0 focuses on enabling coastal communities and ecosystems to cope with climate change impacts by 2025, promoting sustainable fisheries, and improving coastal livelihoods.


Conclusion

Indonesia’s comprehensive approach to climate resilience in 2025 encompasses community empowerment, sustainable urban development, renewable energy adoption, healthcare system strengthening, and environmental conservation. By integrating these strategies, the nation is positioning itself to effectively navigate the challenges of climate change and build a more sustainable future Indonesia-Agent.com.

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