Executive Summary | Encouraging Inclusive Climate Resilient Budget Allocations

The National Development Planning Agency (Bappenas) estimates that Indonesia potentially experiences economic losses due to climate change to the amount of IDR 544 trillion in just four years, from 2020-2024. To minimize these losses, the government has intervened in the form of climate resilience actions regulated in the Bappenas Climate Resilient Development Policy Document (KPBI) and its implementation requires regional funding support. However, regional support has not been effective because of limited budget, uneven distribution across the four pillars of climate resilient development, and not being in line with the needs of vulnerable groups to respond to climate change.

PATTIRO (Center for Regional Information and Studies) together with nine partners has conducted a study on regional readiness in facing climate change. Such readiness is important because according to the National Development Planning Agency (Bappenas) Indonesia has the potential of suffering from a loss of IDR 544 trillion due to climate change in the 2020-2024 period.

The study was carried out by tracking climate resilience budgets in nine districts, namely Padang Pariaman, Pesisir Selatan, Pesawaran, East Lampung, Central Lombok, East Lombok, South Central Timor (TTS), East Manggarai and East Flores. These nine districts are included in the top and super priority location categories for climate resilience action based on the KPBI document. Budget tracking is carried out on four pillars of climate resilient development, namely infrastructure, technology, governance and capacity building. The tracking was carried out on the 2021-2022 Regional Revenue and Expenditure Budget (ABPD) documents.

From the budget tracking, it was found that the climate resilience budgets in the nine districts were still limited, on average below IDR 200 billion. Such allocation is not commensurate to the potential losses resulting from climate change. Only one district, namely East Manggarai, has allocated a climate resilience budget of up to IDR 486 billion in 2021 and IDR 302 billion in 2022. Meanwhile, the lowest climate resilience budget is allocated by East Lampung, namely only IDR 15 billion in 2021 and IDR 39 billion in 2022.


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