Indonesia is expected to be among the top five economies in the world by 2030. With a population of 260 million people and consisting of 17,000 islands, it has significant natural resources. While Indonesia’s economy is growing at a steady pace, this high-growth rate poses many challenges, both social and environmental. Deforestation, emissions, rural electrification and poverty alleviation are just a few.
Today, Indonesia’s financial sector is not geared towards these challenges, favoring economic growth above anything else. There is also the need to look beyond aid in financing green growth, climate change mitigation, adaptation, conservation and smallholder development objectives at scale.
A multi-stakeholder group established the Tropical Landscapes Finance Facility to bring long-term finance to projects and companies that stimulate green growth and improve rural livelihoods.
The TLFF was launched by H.E. Darmin Nasution, Coordinating Minister for Economic Affairs at the Coordinating Ministry for Economic Affairs, Republic of Indonesia on 26 October 2016.