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SEI brief

Accessing climate finance for inclusive, low-carbon transport in Indonesia

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SEI brief

Accessing climate finance for inclusive, low-carbon transport in Indonesia

This policy brief provides insights into steps Indonesia can take to help secure adequate funding to implement sustainable and inclusive transport projects in its cities. The brief summarizes key points from Guidance on Accessing Climate Finance for Inclusive Low-Carbon Transport in Indonesia, a report by the UK Partnering for Accelerated Climate Transitions (UK PACT) program. 

Kate O'Reilly, Gary Haq, Jana Busch / Published on 25 August 2025

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Citation

O'Reilly, K., Haq, G., & Busch, J. (2025). Accessing climate finance for inclusive, low-carbon transport in Indonesia. SEI brief. Stockholm Environment Institute. https://doi.org/10.51414/sei2025.024

Key messages

  • Indonesia can make policy changes to help local governments take advantage of a greater variety of climate finance options to support inclusive, low-carbon transport.

  • Local governments seeking climate finance to support transport projects face significant regulatory and technical barriers. Key barriers include restrictions on direct access to foreign climate finance, and a lack of experience with long-term financial planning.

  • To gain greater access to climate finance, Indonesia should strengthen institutional capacity and collaboration between national and local governments.

  • To attract partnerships and funding, projects need to meet higher standards. Proposals must be well prepared, financially viable, and aligned with national climate goals. They should incorporate clear feasibility assessments and sustainable financing strategies.

  • Blended finance and public-private partnerships can help reduce investment risks and attract private funding.

  • Long-term financing mechanisms can help make low-carbon transport projects more sustainable.

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Read the brief / PDF / 984 KB

SEI authors

Kate O’Reilly

Project Manager

SEI York

Gary Haq

Senior Research Fellow

SEI York

Jana Busch

Communications Specialist

Communications

SEI York

Topics and subtopics
Air : Cities, Transport / Climate : Finance
Related centres
SEI York
Regions
Indonesia