Indonesia and the United Nations launched a joint program on April 9, 2026, to help small-scale farmers mitigate climate risks by expanding access to financial services and sustainable agricultural practices. The initiative, titled “Leveraging Finance to Scale Up Climate-Resilient Food Systems,” will be implemented in the food-producing provinces of East Java and Lampung.
- Target Reach: Training for 15,000 farmers and financing for 300,000 smallholders.
- Financial Goal: Mobilizing $205 million in public and private finance from a $2 million initial investment.
- Key Mechanisms: Integration of Green Sukuk, SDG Bonds, and climate insurance.
Strengthening Food Security and Farmer Welfare
The program aims to bolster financing access for farmers and encourage the adoption of climate-smart agriculture to improve rural welfare and strengthen national food security. Leonardo A. A. Teguh Sambodo, Deputy for Food, Natural Resources, and Environment at the Ministry of National Development Planning (Bappenas), stated that the objectives align with national priorities for sustainable development and food systems transformation.
Small-scale farmers are considered the backbone of Indonesia’s agriculture but remain highly vulnerable to climate change. Extreme weather, prolonged droughts, and pest outbreaks increasingly threaten rural incomes and the stability of the national food supply.
Financial Mechanisms for Sustainable Agriculture
To scale the adoption of innovative practices, the program leverages existing financial tools, including Indonesia’s climate insurance scheme, Sustainable Development Goal (SDG) Bonds, Green Sukuk (shariah-compliant green bonds), and the Indonesian Environment Fund (BPDLH).
In East Java, at least 6,000 farmers will receive support to apply sustainable farming practices in exchange for access to climate insurance. Additionally, the program intends to mobilize $150 million from annual SDG Bond and Green Sukuk issuances to fund rice biofortification and sustainable practices for at least 300,000 smallholders.
The BPDLH is expected to provide micro-loans to at least 400 Micro, Small and Medium Enterprises (MSMEs) that implement bankable agro-silvo-pastoral projects combining forestry, animal husbandry, and crop cultivation.
Implementation and International Support
Running from 2026 to 2027, the program is led by the Food and Agriculture Organization (FAO) in partnership with the International Fund for Agricultural Development (IFAD), the United Nations Development Programme (UNDP), and the UN Resident Coordinator’s Office (RCO).
UN Resident Coordinator in Indonesia Gita Sabharwal noted that the $2 million Joint Programme investment targets the mobilization of $205 million in total public and private finance.
The initiative is supported by the Joint SDG Fund and the UN Food Systems Coordination Hub, with contributions from the European Union and governments including Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Monaco, the Netherlands, Norway, Poland, Portugal, Republic of Korea, Saudi Arabia, Spain, Sweden, and Switzerland.
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