Currently, Indonesia’s climate resilience efforts are heavily dependent on public spending and post-disaster response, leaving adaptation projects poorly structured for private investment. According to a report by Lestari Advisors, this creates a bottleneck as the country requires IDR 840 trillion in total funding, with 60% expected from non-public sources. To successfully mobilize private capital, Indonesia must transition toward market creation. This can be achieved through an industrial policy approach focusing on four pillars: creating predictable demand, strengthening domestic capabilities, leveraging public risk-sharing, and aggregating small projects into investable portfolios.
