The SETAPAK 4 program is a continuation of the previous program supported by The Asia Foundation to protect forests and land through good governance. The aim is to strengthen policies at the national level to support the optimization of environmental and forestry funding.

Even though the Indonesian Government has demonstrated its commitment to addressing climate change, by ratifying the Paris Agreement and including sustainable development on its main agenda, there are still obstacles in financing, especially from the APBN and APBD, to implement fiscal incentives in environmental performance.

Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments provides an opportunity for regional governments that have adopted ecologically based fiscal incentive policies to obtain support. This can be done through schemes such as TAPE/TAKE/ALAKE.

In achieving its goals, this program has two main outputs. First, adoption of the EFT policy in national policy through a review and proposed revision of the Minister of Finance Regulation on Fiscal Incentives for 2025 based on environmental and forestry performance, preparation of a Minister of Home Affairs Regulation on Guidelines for Preparing APBD regarding sustainable and gender responsive EFT schemes, as well as policy recommendations to encourage revision of the Regulation Government Number 12 of 2019 concerning Regional Financial Management.

The second output is strengthening the environmental funding coalition through capacity building, cadre formation and the Green Leader Forum (GLF). This aims to increase the capacity of CSOs at the local level in terms of EFT, involve champions (especially women and young groups) in advocacy for environmental budgets and funding at the national level, as well as involving female champions of the EFT sector in advocacy for the adoption of national policies and the implementation of Green Leaders Forum (GLF).