Sustainable Infrastructure in Indonesia

In this project, we assess the benefits of sustainable infrastructure for Indonesia, and we explore ways of implementation. At the core of the project are a policy paper about sustainable infrastructure and two customized SAVi valuations for nature-based infrastructure:

  • Protecting and restoring peatland forests in the Katingan Mentaya Project in Central Kalimantan
  • Restoring mangrove forests in the Belitung Mangrove Park on Belitung Island.

These nature-based infrastructure projects offer great benefits for carbon storage, climate adaptation, and local livelihoods. The purpose of the SAVi assessments is to identify and value these benefits and to explore innovative financing instruments to implement the projects.

Read the report: How to Make Investments in Land Rehabilitation Economically Viable

We also prepared a technical guidance document on how to undertake cost-benefit and other financial analyses that integrate environmental, social and governance (ESG) risks and value the diverse added benefits and avoided costs of sustainable infrastructure investments. The technical guidance document covers energy infrastructure, buildings, roads, wastewater, irrigation, and natural infrastructure. The guidance is tailored specifically to inform the national development planning model IV2045. This system dynamics model was developed by Bappenas, Indonesia’s Ministry of National Development Planning

The policy paper analyzes how Indonesia can foster sustainable infrastructure that delivers low-carbon development and bring additional benefits. It highlights the possible contributions of sustainable infrastructure for the national low-carbon-development ambitions. The paper also provides guidance to policy-makers and decision-makers to identify the opportunities and benefits of sustainable infrastructure. Lastly, it presents ways to foster investments and leverage finance for sustainable infrastructure projects.

This work is undertaken with the financial support of the UK Foreign, Commonwealth Development Office (FCDO) support program to the Government of Indonesia’s Low Carbon Development Initiative (LCDI). The LCDI is being implemented by the New Climate Economy (NCE) and World Resources Institute (WRI) Indonesia.

WRI and IISD held consultations with the Indonesian Ministry of Planning (BAPPENAS) on the outputs of this project in Autumn 2021.