Jakarta. Indonesia will require $757.6 billion in climate financing by 2035 to meet its climate-action commitments under the Enhanced and Secondary Nationally Determined Contribution (NDC), highlighting a major funding gap as current climate spending accounts for only 3 percent of the state budget, the government said on Tuesday.

National Development Planning Minister Rachmat Pambudy presented the figure during an event in Jakarta, noting that climate-related allocations remain modest compared with the magnitude of the country’s decarbonization and adaptation objectives.

“On average, government climate expenditure between 2016 and 2024 stood at $4.4 billion per year, or about 3 percent of the state budget. This means there is still a very large climate-financing gap,” Rachmat said.

To close the gap, Indonesia must improve governance readiness and accelerate programs and projects capable of mobilizing large-scale investment. Investment, he stressed, is crucial to advancing technology, innovation and knowledge — foundations that will allow Indonesia to fast-track its low-carbon transition and climate resilience.

Rachmat called for early-stage investment in scalable low-carbon technologies, citing World Resources Institute (WRI) 2025 data showing that every $1 invested in climate adaptation can yield over $10 in benefits within a decade.

He also referenced the International Energy Agency (IEA) 2021 finding that 50 percent of global emissions reductions needed by 2050 will come from technologies that are currently still in the prototype stage.

The urgency aligns with global momentum following the 30th UN Climate Change Conference (COP30) in Belém, Brazil, where climate finance topped the agenda and countries agreed to work toward mobilizing $1.3 trillion per year by 2035 under the New Collective Quantified Goal on Climate Finance (NCQG).

On the same day, the government officially launched the Innovation and Technology Fund (ITF) — a financing mechanism designed to support low-carbon development programs at the provincial level.

Rachmat said the ITF will function as a financing bridge to spur climate innovation, strengthen technological solutions and support projects that deliver multiple long-term benefits for mitigation and adaptation.

The ITF will be distributed through the Innovative Development Fund, which is expected to contribute to broader national development targets. Rachmat also expressed appreciation for support from the UK, Germany and the UNDP for their roles in assisting Indonesia in tackling climate challenges.