The TLFF coordinates among government, private sector and communities with the objective of fostering large-scale positive change in the country.

We bring long-term finance to projects and companies that stimulate green growth and improve rural livelihoods

Indonesia is expected to be among the top 5 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 of these challenges.

Today, Indonesia’s financial sector is not geared towards these challenges – it favours economic growth above anything else – resulting in a lack of credit availability for projects that are commercially viable yet simultaneously address social and environmental challenges the country faces. There is also the need to look beyond aid in financing green growth, climate change mitigation, conservation and smallholder development objectives of Indonesia at scale.

To take advantage of the momentum, a multi-stakeholder group has 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.

Lending Facility

We support the achievement of the Paris Agreement and Sustainable Development Goals

Our investment opportunities are impact focused with an objective of improved management of forests, biodiversity and ecosystem restoration services. Protecting natural capital is the most effective way to support a transition to a green economy and achieve the SDG targets, as 14 out of 17 SDGs are directly affected by the status of natural resources. All TLFF projects involve marginalised communities as active partners and seek to deliver benefits for women, as they are dependent on nature on an everyday basis.

We support Indonesia in achieving its strategic development goals and climate change targets

The TLFF leverages public funding to unlock private finance for sustainable land use,including in agriculture and ecosystem restoration, and for investments in renewable energy. The TLFF coordinates among government, private sector and communities to foster large-scale positive change in the country.

Investment Approach

The TLFF supports deforestation free supply chains through strict lending criteria. It aims to mobilize international capital at scale to incentivize sustainable agriculture and renewable energy in Indonesia. We hope to decrease the environmental damage that often accompanies business-as-usual investing and at the same time improve rural livelihoods.

ADM Capital manages the TLFF lending platform. BNP Paribas arranges long-term commercially priced, long-tenor debt for individual projects.

Risk Management

Robust processes are in place to manage risk appropriately.

Grant Fund

Overview

The TLGF is to be capitalized by multilateral, bilateral and philanthropic donors. It focuses on enhancing capacities on the ground to generate more green livelihood opportunities, strengthen wildlife conservation, protect forest cover, create resilience to climate change and improve the availability of renewable energy for rural communities. The TLFF invites contributions from philanthropic foundations and multilateral and bilateral entities, ensuring that their funding is leveraged with significant investments through the Tropical Landscapes Finance Facility.

Supported Activities

The TLGF will provide technical assistance and co-fund early stage development costs of assets financed by the Lending Facility. Provision of higher yielding seeds for smallholders, restoring productivity on degraded land, technical support to increase productivity in the sustainable agriculture sector, and the construction phase in the renewable energy sector, are some of the types of greenfield support that the grant facility will provide in order to ensure that TLFF is not only commercially viable, but also delivers tangible environmental and social benefits that would not be achieved without it.

Founding Partners

ADM Capital
BNP Paribas
UNEP
World Agroforestry Centre