The Government of Indonesia and the United Nations in Indonesia launched a joint programme on 9 April aimed at helping smallholder farmers manage climate risks by improving access to financial services and promoting sustainable agricultural practices. The initiative will be implemented in East Java and Lampung, two of the country’s key food-producing regions.
Smallholder farmers play a central role in Indonesia’s agricultural sector but remain highly vulnerable to climate change. Increasingly frequent extreme weather events, prolonged droughts, and pest outbreaks continue to threaten their livelihoods, putting both rural incomes and national food security at risk.
The programme, titled “Leveraging Finance to Scale Up Climate-Resilient Food Systems,” aims to train at least 15,000 farmers to adopt climate-smart and innovative agricultural practices. These include the use of drought-resilient crops such as water-efficient rice varieties. Climate-smart agriculture focuses on improving productivity while reducing greenhouse gas emissions and strengthening resilience to climate-related shocks.
To scale adoption, the programme integrates existing financing mechanisms such as Indonesia’s climate insurance scheme, Sustainable Development Goal bonds, Green Sukuk, and the Indonesian Environment Fund (BPDLH). These efforts build on earlier initiatives supported by the UN Joint SDG Fund to strengthen sustainable finance in the country.
Speaking at the launch held at Bappenas in Jakarta, Leonardo A. A. Teguh Sambodo highlighted that the programme aligns with national priorities, including food system transformation and sustainable development. He noted that it is expected to expand farmers’ access to finance, promote climate-smart agriculture, improve livelihoods, and strengthen food security.
As part of the initiative, at least 6,000 farmers in East Java will adopt sustainable farming practices in exchange for access to climate insurance. The programme also aims to mobilize USD 150 million through SDG bonds and Green Sukuk issuances to support sustainable agriculture and rice biofortification for around 300,000 smallholders. This includes expanding access to advanced technologies such as solar-powered irrigation systems.
In addition, the Indonesian Environment Fund is expected to provide micro-loans to at least 400 Micro, Small and Medium Enterprises (MSMEs) engaged in agro-silvo-pastoral projects that combine crop cultivation, forestry, and livestock production.
The programme will run from 2026 to 2027 and will be led by the Food and Agriculture Organization in partnership with the International Fund for Agricultural Development, the United Nations Development Programme, and the UN Resident Coordinator’s Office.
According to Gita Sabharwal, the initiative aims to mobilize approximately USD 205 million in public and private finance from an initial USD 2 million investment. She emphasized that the programme combines technical expertise with innovative financing tools to scale climate-smart agriculture and reduce risks for farmers.
Rajendra Aryal noted that agriculture currently receives a limited share of global climate finance and expressed hope that the programme would unlock greater investment for smallholder farmers, including women and youth.
Supported by the UN Joint SDG Fund and contributions from partners such as the European Union and multiple national governments, the initiative is part of a broader effort to accelerate food systems transformation and progress toward the Sustainable Development Goals.
Sharon Lennon also expressed support for the initiative, emphasizing its potential to advance climate-resilient agriculture and improve livelihoods across Indonesia.
