Indonesian Wealth Fund Inks MoU With Australian Climate Advisory Firm 

To unlock the potential of nature-based solutions (NBS) in Indonesia, the country’s sovereign wealth fund, the Indonesia Investment Authority (INA), has signed a Memorandum of Understanding (MoU) with Pollination, an Australian-based specialist climate change investment and advisory firm.

INA said in a statement the collaboration represents a significant stride towards harnessing the power of nature-based solutions (NBS) strategies that employ Indonesia’s ecosystem’s inherent capacity to absorb carbon emissions, bolster biodiversity, and nurture socio-economic growth.

The MoU lays the groundwork for cooperation in the NBS sector in Indonesia, Southeast Asia’s largest economy. This effort is aligned with global and Indonesian aspirations for net zero emissions, in line with the Paris Agreement’s targets, aiming to limit global temperature rise to a maximum of 1.5 degrees Celsius and reduce greenhouse gas (GHG) emissions by at least 31% through domestic efforts or up to 43% with international support by 2030.

Uniquely positioned, Indonesia holds the world’s second-largest low-cost NBS potential, accounting for 75% of SEA carbon stocks. Under the terms of the MoU, both INA and Pollination are committed to identifying investment opportunities, developing nature-based projects, and enhancing strategic planning for financing and investing in NBS.

The collaboration is further bolstered by the Indonesian Government’s stance on carbon trading mechanisms, both domestically and internationally, with recent Presidential Regulations laying the groundwork for domestic carbon pricing and participation in international carbon markets.

“Reaching net zero global emissions as quickly as we need to will require the opportunities presented by NBS to be maximised,” said Pollination Chief Executive Officer Martijn Wilder. “

He further added, “We are extremely optimistic about Indonesia’s ability to initiate and host the high-quality projects that global investors are actively seeking and to execute them at a scale that will be required.”