VZCZCXRO6618
PP RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #1552 2590604
ZNR UUUUU ZZH
P 160604Z SEP 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 3340
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS COLL
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RUEHRC/USDA FAS WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHBR/AMEMBASSY BRASILIA 0226
RUEHLO/AMEMBASSY LONDON 0932
RUEHCP/AMEMBASSY COPENHAGEN 0112
RUEHKO/AMEMBASSY TOKYO 3077
RUEHBJ/AMEMBASSY BEIJING 5979
RUEHBY/AMEMBASSY CANBERRA 3660
RUEHUL/AMEMBASSY SEOUL 5408
RHEHNSC/NSC WASHDC

UNCLAS JAKARTA 001552 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID KGHG SENV PREL ID
SUBJECT: Indonesia Launches Climate Change Trust Fund 
 
¶1.  On September 14, Indonesia's Ministry of National Development 
Planning announced the "soft" launch of the Indonesia Climate Change 
Trust Fund (ICCTF).  Through the ICCTF, the Government of Indonesia 
(GOI) aims to achieve a low-carbon economy with greater resilience 
to climate change and to link international sources of financing 
with national investment strategies.  The ICCTF's main mitigation 
priority areas are the energy sector and sustainable management of 
forestry and peat lands.  The adaptation priority areas are 
agriculture, water resources and coastal zone management (including 
fisheries).  The GOI moved up the ICCTF launch announcement in 
advance of this month's rapid series of high-level climate change 
talks, starting with the Major Economies Forum meeting in Washington 
and culminating in the Pittsburg G20 Summit. 
 
¶2.  The GOI sees the ICCTF as the means to finance its Nationally 
Appropriate Mitigation Actions (NAMAs).  A 20 Year Climate Change 
Sectoral Roadmap will provide the basis for developing Indonesia's 
NAMAs.  Together with Indonesia's 2010-2014 Medium Term Development 
Plan, this Roadmap will, when finalized, guide ICCTF's activities. 
The GOI aims to complete the Roadmap by October at the earliest, but 
no later than December's climate change negotiations in Copenhagen. 
 
¶3.  It was a "soft" launch because the ICCTF's structure, mechanisms 
and policies are not yet fully defined.  The United Nations 
Development Program will serve as the interim Trustee until a 
"national financial institution" is appointed by the Ministry of 
Finance through a fair and open bidding process.  The timing of the 
ICCTF launch caught donors by surprise.  However, the United Kingdom 
re-pledged an existing commitment of 10 million pounds.  Australia 
has also pledged AUS$2 million for the first year of ICCTF 
activities.  Norway has similarly pledged an initial 1 million 
Euros.  In its first phase, the ICCTF will have an Innovation Fund 
mechanism that operates solely with grant funding from development 
partners and other contributors.  From 2012 onwards, the ICCTF will 
shift to a Transformation Fund mechanism that will accept multiple 
sources of financing -- public and private -- in addition to 
grants. 
 
OSIUS