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Life Cycle Indonesia (LCI) and WWF Host a Workshop to Unlock Landscape Finance for Indonesia


To address Indonesia's climate targets and mobilise private capital for nature-positive development, LCI in collaboration with World Wildlife Fund (WWF) hosted a two-day multistakeholder dialogue and training workshop on the Landscape Finance Approach (LFA). LFA, developed by WWF, is a new tested and scalable investment model that offers investors a pathway to turn nature into a risk-reduction and positive-yielding opportunity, and aims to change such misconceptions.


Held on July 29–30, 2026, in Central Jakarta, the workshop brought together government officials,, financial institutions, private sectors, and Non Governmental Organisations (NGO) to discuss practical pathways for financing Indonesia’s landscapes that benefit both the local economic activities and the ecosystem.


Bridging the IDR 400 Trillion Investment Gap


Indonesia's transition toward a low-carbon and nature-positive economy faces a critical funding bottleneck. Achieving the nation's Forest and Other Land Use (FOLU) Net Sink 2030 targets requires an estimated IDR 400 trillion (approx. US$ 25–27 billion). However, only 5% (~IDR 21 trillion)  of this capital has been mobilized to date.


This investment shortfall is particularly acute in the agri-food sector. While agriculture contributes 9.9% to Indonesia's GDP, agricultural credit accounts for just 7.12% of total bank credit disbursement. Furthermore, over 29.61% Indonesian farmers own less than 0.1 hectares of land and lack formal land titles, effectively excluding smallholders—who are vital to landscape preservation—from traditional collateral-backed credit.



From Isolated Projects to Aggregate Landscapes: The LFA Framework


The Landscape Finance Approach (LFA) shifts the paradigm from fragmented, short-term conservation projects to an integrated financial model. By aggregating investments across entire ecological boundaries, LFA aligns financial flows with ecological and socio-economic systems, thereby de-risking private capital and scaling commercial bankability.


Presented by WWF-Indonesia, the workshop began with walking participants through the 5 Phases of the LFA Framework as well as study cases:


  • Phase 0: Prioritise Landscapes — Selecting focus ecosystems based on impact potential and financeability.

  • Phase 1: Assess Threats & Solutions — Translating conservation plans into a shortlist of bankable and non-bankable opportunities.

  • Phase 2: Select Interventions — Matching landscape opportunities to specific green financing instruments and market actors.

  • Phase 3: Design & Implement — Creating business models, validating feasibility through pilots, and structuring finance mechanisms.

  • Phase 4: Measure & Monitor — Tracking long-term ecological, social, and economic impact through transparent governance.


Participants were also introduced with WWF’s recently published interactive web-based learning tool, which allows deeper learning outside the workshop.  To learn more about LFA, access WWF's e-Learning tool: https://wwf.myabsorb.com


High-Level Collaboration Across Sectors


Moderated by LCI, the interactive workshop sessions facilitated direct dialogue between multistakeholders,  government officials, financial institutions, private sectors, and Non Governmental Organisations (NGO).


The event saw active representation from high-level regulators and institutions, including The Ministry of National Development Planning/Bappenas. Commercial banking worked alongside major agribusiness and forestry corporations—to co-design financial structures tailored to landscape realities.



Aligning with National and Global Targets


The LFA framework supports Indonesia's national strategies, including the Indonesian Biodiversity Strategy and Action Plan (IBSAP) 2025–2045. Specifically, Target 18 of the IBSAP mandates that companies and financial institutions assess, report, and reduce their negative impacts on nature while actively funding positive contributions. In addition to IBSAP, the LFA also aligns with Enhanced Nationally Determined Contribution (ENDC) and Forestry and Other Land Use (FOLU) Net Sink 2030.


Furthermore, the approach supports WWF-Indonesia's concrete target to transition 50,000 hectares to nature-positive agricultural practices, directly aiding Indonesia's broader goal of reducing 140 million tons of CO2e in the land-use sector by 2030.


By bridging corporate sustainability objectives with rigorous technical screening and landscape-level financial engineering, the joint initiative between LCI and WWF marks a crucial step in positioning Indonesia's priority landscapes as bankable, resilient, and climate-positive investment destinations. 


References


Badan Pusat Statistik. (2023). Sensus Pertanian 2023. BPS.


Badan Pusat Statistik. (2026). Statistik Indonesia 2026. BPS.



Kontan.co.id. (2025). Pembiayaan FOLU net sink 2030 baru 5%, Kemenhut bidik investasi dari Inggris & Jepang. https://nasional.kontan.co.id/news/pembiayaan-folu-net-sink-2030-baru-5-kemenhut-bidik-investasi-dari-inggris-jepang


 
 
 

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