CONTEXT

Millions of people depend heavily on Indonesia’s rich natural resources for food, shelter, water, energy, and jobs. However, climate change is endangering Indonesia’s sustainable development progress by increasing the frequency and severity of hazards, including cyclones, floods, landslides, droughts, and earthquakes. The United States Agency for International Development (USAID) partners with the Government of Indonesia (GOI) to strengthen the resilience of populations, their communities and economies, and the ecosystems that support people’s livelihoods.

USAID works on shared environmental priorities: improving natural resources management; accelerating Indonesia’s energy transition towards a clean future through reliable and sustainable energy; increasing access to safe drinking water, sanitation, and hygiene (WASH) for the urban poor; enhancing natural resource management by working with businesses, farmers, and fishers to adopt sustainable practices; and combating ocean plastic pollution through improved urban waste management.

Our support has resulted in a number of important achievements, including:

• Since 2021, USAID has facilitated the completion of 293 megawatts of clean energy generation serving 1.6 million people.  In addition, USAID supported implementation of energy efficiency practices which have generated energy savings of 10.5 million megawatt hours. Together, these activities have reduced 24.2 million tons of greenhouse gas emissions. 

• Since 2004, USAID has worked with the GOI to increase access to safe water and sanitation services for nearly 7.6 million Indonesians in 92 municipalities.

• To reduce plastic pollution, USAID piloted an innovative plastic credits scheme to divert 3,000 tons of plastic from degrading the environment and potentially leaking into the ocean. 

• In 2023, USAID supported the formulation of 17 provincial regulations and ministerial decrees to improve fisheries and marine protected area (MPA) management, and signed nine MoUs with private companies to promote sustainable seafood and climate change resilience.

CURRENT PROGRAMS

EXPANDING ACCESS TO CLEAN ENERGY

With ambitious climate targets and energy demand growing five percent a year, Indonesia is striving for universal electrification while reducing its greenhouse gas emissions. USAID Sustainable Energy for Indonesia’s Advancing Resilience (USAID SINAR) is assisting Indonesia’s drive to meet ambitious renewable energy and energy efficiency targets, reduce greenhouse gas emissions, and achieve sustainable and inclusive economic growth. USAID works with national and local governments to align national and sub-national plans and programs. Through this work, USAID is advancing the goals of the Just Energy Transition Partnership (JETP), an agreement signed in 2022 between Indonesia and the United States, Japan, and other International Partners Group to mobilize $20 billion in public and private financing.

PROMOTING SUSTAINABLE AGROFORESTRY PRACTICES

Cocoa and coffee are important export commodities that contribute to Indonesia’s economy and the livelihoods of more than four million smallholder farmers and their families. Climate-smart agroforestry is key to protecting cocoa and coffee landscapes, mitigating climate change risks, and increasing farmer productivity and competitiveness. Through the Landscape Approach to Sustainable and Climate Change Resilient Cocoa and Coffee Agroforestry (LASCARCOCO) and Advancing Cocoa Agroforestry Towards Income, Value and Environmental Sustainability (ACTIVE) activities, USAID is partnering with American companies such as Mars, Olam Food Ingredients, Keurig-Dr. Pepper, and Hershey’s to increase the adoption of sustainable agroforestry practices for smallholder farmers of high-demand commodities. Aiming to train more than 15,500 farmers in sustainable agroforestry practices, these partnerships are increasing farmers' resilience to climate change while improving incomes and livelihoods.

CONSERVING MARINE BIODIVERSITY

Indonesia’s marine biodiversity and complex fisheries are threatened by the impacts of climate change, unsustainable management, and illegal, unregulated, and unreported (IUU) fishing. USAID’s robust marine conservation programs improve the sustainable and equitable management of fisheries and MPAs. Through USAID Collaborative Fisheries Management (USAID Ber-IKAN) and USAID Effective Marine Conservation (USAID Kolektif), we help Indonesia strengthen the governance of small-scale fisheries, increase government and market-based incentives for sustainable seafood products, and improve the management effectiveness of MPAs. Additionally, USAID sustainable fishing practices work with the Meloy Fund has mobilized $22.4 million, benefitted more than 41,000 fishers, and brought more than 675,000 hectares of seascapes under improved fisheries management.

REDUCING OCEAN PLASTICS THROUGH IMPROVED SOLID WASTE MANAGEMENT

Poor solid waste management poses risks to human health and the environment by polluting our cities and contributing to ocean plastics pollution. USAID Sustainable Municipal Solid Waste Management and Partnership (USAID SELARAS) advances Indonesia’s development goals of reducing land-based sources of ocean plastics pollution and methane—a potent greenhouse gas—by promoting sustainable and integrated solid waste management and recycling systems in cities. Working in 18 cities in seven provinces, USAID SELARAS aims to increase plastic waste recycled and collected by 20 percent, and mobilize an additional $110 million investment for solid waste management programs.

INCREASING ACCESS TO SAFE WATER, SANITATION, AND HYGIENE (WASH)

Despite significant progress in access to improved water services and sanitation facilities over the past 20 years, Indonesia still faces challenges around insufficient drinking water, suboptimal sanitation products and services, and inadequate water resources management, particularly in poor and underserved urban areas. Through USAID Indonesia Urban Resilient Water, Sanitation and Hygiene (USAID IUWASH Tangguh), we work with the GOI, the private sector, non-governmental organizations, service utility providers, and communities to provide climate-resilient, safely managed drinking water and sanitation services—particularly for poor urban communities. Through USAID Indonesia Urban Resilient Water, Sanitation and Hygiene – Market (USAID IUWASH Pasar), we grow local markets for WASH products and services by strengthening WASH businesses’ capacity to meet demand across consumer segments, with a focus on underserved and vulnerable households.