Eyewitness News – SANUR
Bali requires a staggering green investment of IDR 623.28 trillion ($38 billion approx.) by 2045 to achieve its net-zero emissions target, according to the province’s Regional Low-Carbon Development Plan (RPRKD). This massive capital will span critical sectors, including energy, transportation, land use and blue carbon, as well as waste management.
The funding urgency took center stage at the Bali Climate Week 2026 Climate Investment Forum on Wednesday (October 14). Opening the forum, Head of the Bali Provincial Development Planning Agency (Bappeda), I Wayan Wiasthana Ika Putra, highlighted the immense fiscal hurdles local governments face.
“Funding support is the most vital element for implementing the RPRKD programs. However, accessing financial sources to meet this massive figure remains a major challenge, given current regional fiscal conditions in Bali and other regions amid budget efficiency measures on transfer funds. This is a shared and daunting challenge for us at the regional level,” Ika Putra stated.
With limited state and regional budgets (APBN/APBD), mobilizing private sectors, financial institutions, and global development partners is non-negotiable. Delivering a keynote address, Deputy Speaker of the People’s Consultative Assembly (MPR RI), Eddy Soeparno, emphasized that Indonesia’s Nationally Determined Contributions (NDC) cannot rely solely on public coffers.
“The NDC cannot be achieved if it is only funded by the state and regional budgets. Therefore, we must forge various partnerships—both by promoting Public-Private Partnerships (PPPs) and expanding access to international funding,” Eddy explained.
He also pointed out the vast appetite from global investors. “My visits to several international climate agendas this year show immense enthusiasm for Indonesia. In fact, a consortium of financial institutions is ready to provide USD 1 billion to finance renewable energy power plants. Therefore, we must improve our capacity and readiness to accelerate execution and clarify the roles of each stakeholder. Capital never sleeps; if we fail to utilize it, investors will look elsewhere.”
Bridging the Capacity Gap
Despite the abundance of global climate finance, regional readiness remains a major bottleneck. During a panel session, PT Sarana Multi Infrastruktur’s Energy Transition Team Leader, Puti Faraniza, pointed out structural gaps at the local level.
“Disparities in technical capacity, project readiness, and the local government’s ability to identify needs and structure investment schemes are challenges that must be addressed. Ideally, local governments should take an active role in determining investments that match their priorities and engage funding institutions early in project development,” Puti noted.
Collaborative and Regional Approaches
Beyond international loans, climate financing can be unlocked through collective efforts involving the private sector, financial institutions, and direct community contributions.
A prime example is the Sanur Low-Emission Zone (KRE Sanur), where interventions are funded beyond local budgets. The initiative successfully pools contributions from villages, customary villages (desa adat), hotels, private sectors, banks, philanthropic institutions, and local residents.
This area-based climate action approach allows stakeholders managing the zone to co-finance climate initiatives while transitioning toward sustainable business practices—provided all actors share a unified vision.
The Climate Investment Forum was designed to spark discussions on climate funding that is not only adequate in volume but also targeted and localized. The event is part of Bali Climate Week 2026, running from October 13–17 in the Sanur Low-Emission Zone, hosted by the Bali Net Zero Emission Coalition and the Bali Provincial Government, with support from ViriyaENB.
Reporter : Daniel Herry
