Kicking Off the Conversation: FINCAPES and PYC Drive Public Engagement on Climate Finance

As Indonesia accelerates toward its net-zero goals, climate finance has taken center stage in national discourse. To help drive this momentum, the Canada-funded FINCAPES Project (Flood Risk, Carbon Pricing, and Ecosystem Sustainability), in partnership with the Purnomo Yusgiantoro Center (PYC), has launched a multi-platform public engagement series. This initiative brings science, policy, and finance together to support a more inclusive, data-driven approach to Indonesia’s climate future.

What began as a series of targeted climate finance discussions has rapidly evolved into a coordinated national effort, mobilizing public discourse, influencing policy thinking, and culminating in the launch of RECLICKS, Indonesia’s Centre of Excellence for Climate Finance Policy.

This partnership between FINCAPES and PYC represents more than a sequence of events. It marks the emergence of a coordinated, cross-sectoral effort to build a resilient, inclusive, and forward-looking climate finance ecosystem for Indonesia.

Mobilizing Public Discourse Through Climate Finance Conversations

As part of its broader effort to raise awareness and foster inclusive dialogue on Indonesia’s low-carbon transition, the FINCAPES Project, in collaboration with the Purnomo Yusgiantoro Center (PYC) and supported by Global Affairs Canada, launched a series of climate finance conversations aimed at mobilizing public discourse and informing national policy thinking.

June 23: Climate Finance Podcast Sparks Public Conversation

In mobilizing broader public discourse, FINCAPES and PYC released a special episode of the PYC Podcast on 23 June 2025, titled “Financing the Climate Future.” Bill Duggan, FINCAPES Project Director from the University of Waterloo, and Prabu Ghazaly, Senior Analyst at Climate Policy Initiative Indonesia discussed several key topics included:

• The urgency of climate finance for developing countries,
• Indonesia’s barriers in accessing green funding,
• Proven international models such as Green Climate Fund, carbon markets, and performance-based payments,
• The critical role of research institutions in supporting a just and effective energy transition.

June 26: Climate Policy Podcast Deepens Outreach and Policy Engagement

To continue the momentum, FINCAPES and PYC participated in a second podcast on 26 June 2025, hosted by Climate Policy Initiative Indonesia (CPI Indonesia). This discussion took a deeper look into policy frameworks, technical barriers, and institutional readiness for climate finance implementation in Indonesia. Topics explored included:

• The need to view climate finance not just as capital, but as a function of accountability, trust, and institutional coordination;
• The political sensitivity of carbon taxation, and how communication strategies must evolve to build public and policymaker support;
• Lessons from international finance instruments like climate bonds, public-private partnerships (PPP), and blended finance;
• The critical role of think tanks and centers of excellence like RECLICKS in aligning research with national priorities.

Several cross-cutting recommendations emerged:

1. Strengthen MRV Systems: Indonesia’s carbon markets face credibility issues due to inconsistent Monitoring, Reporting, and Verification (MRV). Harmonized MRV standards—aligned with international benchmarks—are essential to build trust and enable scaling.
2. Design Equitable Results-Based Payment Models: While promising pilots have been implemented (e.g., in Kalimantan and Jambi), results-based finance must evolve to ensure local ownership, benefit-sharing, and community decision-making.
3. Integrate Blockchain in Carbon Credit Governance: Blockchain-based systems can help track and verify carbon credits transparently, improving trust and traceability across decentralized systems.
4. Support Grid Modernization: To fully absorb renewable energy investments, Indonesia must prioritize upgrades to its electricity grid, including smart metering and energy storage—supported by both public policy and climate finance.

National Dialogue on Climate Finance and Energy Transition

On 26 July 2025, the Purnomo Yusgiantoro Center (PYC), in collaboration with the FINCAPES Project and the University of Waterloo, hosted a special edition of PYC Talks titled “The Future of Climate Finance for Indonesia’s Energy Transition". As part of the pre-event series leading up to the PYC International Energy Conference (IEC) 2025, this forum served as a critical space for cross-sector dialogue on how Indonesia can finance its path to net zero.

Against the backdrop of Indonesia’s commitment to reduce emissions by 43.2% by 2030 and achieve Net Zero Emissions (NZE) by 2060, the event highlighted the scale of investment needed, estimated at over USD 322 billion for mitigation efforts alone. Climate finance, the speakers emphasized, plays a central role in bridging funding gaps, de-risking clean energy investments, and ensuring the transition is just and inclusive.

Moderated by PYC researcher Vivid Amalia, the session brought together experts from finance, government, and industry. Arnita Rishanty, PhD (Bank Indonesia) highlighted how the central bank is greening the financial system through macroprudential policies, green lending incentives, and sustainability reporting. Paul Butarbutar (JETP Indonesia) shared updates on the Just Energy Transition Partnership, especially in light of the U.S. withdrawal, while Yudha Permana Jayadikarta (METI) presented on leveraging public-private partnerships (KPBU) to accelerate renewable energy deployment through dam-based hydropower and floating solar projects.

The event welcomed 55 participants including students, academics, and civil society actors, fostering a vibrant exchange of ideas and best practices. In his remarks, Michael Lynch, Field Director of FINCAPES, underscored the importance of such collaborative platforms to align public and private efforts in meeting Indonesia’s climate goals.

In closing, Inka B. Yusgiantoro, Chair of PYC’s Supervisory Board, noted that while climate finance still faces many hurdles, progress is possible through cross-sector collaboration backed by enabling policies. The event reaffirmed PYC’s commitment to building inclusive, innovation-driven energy policy, and advancing public understanding of climate finance strategies tailored to Indonesia’s unique energy transition context .

PYC International Energy Conference 2025: Launching RECLICKS for a Sustainable Future

PYC successfully hosted the International Energy Conference 2025 on August 22–23 under the theme “Towards Indonesia Emas 2045: Aligning Energy Security, Economic Growth, and Environmental Sustainability.” This biennial event brought together global and local stakeholders, including policymakers, researchers, academics, and private sector leaders to address Indonesia’s energy future as the nation advances toward its 2045 vision of becoming a developed economy.

A highlight of the conference was the launch of PYC’s RECLICKS, the Climate Finance Policy Centre of Excellence, on the opening day. Supported by Global Affairs Canada through the FINCAPES project, and in collaboration with the University of Waterloo, RECLICKS aims to strengthen Indonesia’s climate finance landscape.

The launch featured keynote remarks from Jess Dutton, Canadian Ambassador to Indonesia, Filda Yusgiantoro, Chairperson of PYC, and Bill Duggan, FINCAPES Project Director, emphasizing the Centre’s role in shaping inclusive and sustainable climate finance strategies.

The first CLICKS Talk, titled “ARE YOU READY? To lead the Energy Transition” was also held during the conference, with Dr. Jeffrey Wilson, Director of the School of Environment, Enterprise and Development (SEED) at the University of Waterloo, presenting on innovative climate finance pathways. In addition, ten climate finance research papers, selected from more than 190 submissions, were evaluated, with awards presented to the most outstanding contributions.

Beyond the RECLICKS launch, the conference showcased the results of PYC’s international Call for Papers. Finalists presented their research on pressing energy and sustainability challenges, culminating in the announcement of competition winners at the closing ceremony.

By linking energy security, economic growth, and environmental sustainability, the PYC International Energy Conference 2025 reinforced Indonesia’s commitment to balancing energy transition goals with industrial competitiveness and social equity, critical steps on the path to Indonesia Emas 2045.

What’s Next?

Through podcasts, public forums, and the establishment of RECLICKS, FINCAPES and PYC are helping shape a new era of climate finance thinking—one that is participatory, transparent, and rooted in Indonesian priorities. As RECLICKS evolves, it will continue to serve as a bridge between research and policy, catalyzing investments and knowledge partnerships that support Indonesia’s just and inclusive energy transition.