Manila – Indonesia, one of the eight founding countries of the Open Government Partnership (OGP), continues to reaffirm its commitment to promoting transparent, participatory, accountable, and inclusive governance. Launched in 2011, OGP serves as a global platform for collaboration between governments and civil society organizations (CSOs) to develop National Action Plans (NAPs) that advance open government practices.
Climate change remains an urgent issue, particularly in the Asia-Pacific region, recognized as the most vulnerable to its impacts. A rapid, transformative, and just energy transition is a key mitigation effort, though challenges such as inadequate infrastructure and limited funding persist. Amid these hurdles, Ecological Fiscal Transfer (EFT) emerges as a promising funding solution, redistributing funds from the central government to regions based on ecological performance indicators. By 2024, 40 local governments in Indonesia have adopted this mechanism, with total funding reaching Rp355.4 billion.
OGP’s commitments align with the Paris Agreement. Integrating the two enhances transparency in climate financing, boosts public participation in policymaking, and fosters cross-sector collaboration. Open data and broad access to information empower citizens to monitor climate initiatives and demand greater government accountability.
Publish What You Pay (PWYP) Indonesia and The Asia Foundation (TAF) hosted a hydbrid side event titled Strengthening the Implementation of Ecological Fiscal Transfer Through the Open Government Partnership during the 2025 OGP Asia and the Pacific Regional Meeting in Manila on February 5, 2025. Moderated by Mouna Wasef, Head of Research and Advocacy at PWYP Indonesia, the event aimed to foster dialogue on open governance approaches and alternative funding solutions to address the climate crisis.
R. Alam Surya Putra, Director of the Environmental and Climate Action Unit at The Asia Foundation Indonesia, highlighted the origins of EFT. Forest degradation and declining environmental quality due to development were key drivers. With limited regional budgets for environmental protection, EFT offers a policy alternative through schemes like Provincial Ecological Budget Transfers (TAPE), Regency Ecological Budget Transfers (TAKE), and National Ecological Budget Transfers (TANE). To date, TAPE and TAKE have been adopted by 43 local governments across 5 provinces and 31 regencies/cities, reducing forest fires and improving the Environmental Quality Index.
Mutmainah Korona, a member of the Palu City Regional People’s Representative Council (DPRD), shared insights on the implementation of Village Ecological Budget Allocation (ALAKE) in Palu. This initiative encourages villages to develop conservation and green development programs. Born from challenges like land degradation, mining-related pollution, and poor waste management, ALAKE allocated Rp611 million in 2023 to 10 top-performing sub-districts based on indicators such as waste management and reforestation.
Meanwhile, L. Budhi Yuwono, Head of Bappeda in Siak Regency, explained how TAKE supports the “Green Siak” mission. Facing environmental threats from resource-based industries, such as forest fires and mangrove ecosystem degradation, Siak leverages Regional Regulation No. 4 of 2022 to facilitate TAKE. This mechanism supports reforestation, waste management, and clean water provision while offering performance incentives to villages.
The side event underscored that open governance and innovative funding like EFT can catalyze efforts to combat the climate crisis. Strong collaboration between government, CSOs, and communities positions Indonesia to achieve sustainable, environmentally friendly development.