18 March 2025
Restoring Mangrove Forests: Muhamad Yusuf Secures Ongoing Funding
Projects aimed at protecting Indonesia’s forest and marine resources are starting on a strong... Read more
18 March 2025
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Projects aimed at protecting Indonesia’s forest and marine resources are starting on a strong foundation, following the careful planning of climate finance experts, including Muhamad Yusuf.
Mangrove forests are one of the most effective solutions for tackling the climate crisis due to their ability to store up to five times more carbon than tropical forests.[1] This gives Indonesia, which possesses 23% of the world's mangrove forests, a major role in their preservation.
The Mangroves for Coastal Resilience (M4CR) program aims to rehabilitate and restore 600,000 hectares of mangroves across four provinces.[2]
In his former role as the Head of the Section for Multilateral Affairs at the Directorate General of Budget Financing and Risk Management (DJPPR), Yusuf was vital in managing the procurement of funds for M4CR. These funds, amounting to more than IDR 6.09 trillion, come from loans and grants from the World Bank.[3]
"While managing funding for M4CR, I faced considerable challenges because not many people truly understand how to manage climate finance sustainably," Yusuf explained.
He learned about the Australia Awards Short Course on Climate Finance, held at Griffith University in 2022, through his network as an alumnus of the Australian National University.
“I felt the need to learn from other countries about how they address sustainability issues and implement climate finance,” he said.
Insights on Sustainable Funding
Yusuf found the Short Course in Australia to be very comprehensive due to the combination of classroom learning and site visits to observe the implementation of climate finance in Australia.
“We were given many opportunities to communicate with climate finance experts from Australia. We also had the chance to see the implementation of climate finance firsthand.”
One example was SolarShare in Canberra, a renewable energy company that involved the local community as co-owners.
“I think it’s remarkable how the government, private sector, and community can collaborate on sustainable projects that benefit many people,” Yusuf observed. “The Short Course taught me that the government cannot tackle environmental issues alone; cooperation with the private sector and NGOs is essential.”
The Short Course experience allowed Yusuf to use Australia as a benchmark for implementing climate finance. “I see that Indonesia, with its natural wealth, just needs to work on its implementation, regulatory frameworks, and developing the market to make sustainability projects more accessible, similar to what is done in Australia.”
During the Short Course, Yusuf engaged in intensive discussions about climate finance funding sources with Kuki Soejachmoen, Co-Founder and Executive Director at the Indonesia Research Institute for Decarbonisation, who was a co-designer of the Short Course.
Yusuf realised that Indonesia had not yet maximised the proposal-based funding from Multilateral Development Banks (MDBs).
“She told me that there are funding sources from other MDBs that can be utilised by Asian countries, including Indonesia, to finance climate change projects,” he said.
“She suggested that we in Indonesia should enhance our capabilities to access funding related to climate change projects. She also explained the steps needed to secure such funding.”
A Community-Centred Approach
Upon returning from the Short Course, Yusuf was entrusted with the role of financing coordinator at DJPPR to procure the financing for all projects related to climate change. He was able to share the lessons from the Short Course with his colleagues at the Ministry of Finance to develop a more comprehensive understanding of climate finance.
“We at the Ministry of Finance are sometimes focused on the financing aspect without having a complete understanding of the context of the environmental projects we handle. After obtaining a thorough understanding of climate finance and environmental issues, I now find it easier to manage the financing of projects related to climate finance,” he added.
Besides learning to allocate funds more effectively and efficiently, Yusuf also took away the importance of involving local community and NGOs in programs.
In 2024, M4CR was piloted in six cities in Riau, with a target of rehabilitating 7,498 hectares of mangrove land.[4]
It is executed by the Ministry of Environment, the Peatland and Mangrove Restoration Agency, and the Ministry of Finance, under the coordination of the Coordinating Ministry for Maritime Affairs and Investment.
"We at the Ministry of Finance propose that communities should be actively involved in planting, caring for, and utilising mangroves for public benefit," Yusuf explained.
To ensure the sustainability of the mangrove rehabilitation program, the government is adopting a landscape approach. This not only focuses on strengthening policies and regulations related to mangrove forests but also encourages the development of community resilience through sustainable community-based mangrove management.
"Communities can now participate in mangrove rehabilitation programs through coastal field schools or mangrove schools, which serve as educational forums for mangroves to the community. This includes learning how to plant, care for, and utilise mangroves as a source of livelihood," Yusuf said.
Yusuf and his team have also devised incentive schemes for communities that actively engage in mangrove rehabilitation. This aims to encourage more communities to get involved.
Promoted to Bilateral Affairs
Another project under Yusuf’s former team was the Oceans for Prosperity project (Lautra), initiated by the Ministry of Marine Affairs and Fisheries (KKP). The aim of Lautra is to provide sustainable financing for the management of marine resources and the development of livelihoods for coastal communities.
For the Lautra project, Yusuf and his team have proposed to the government the formation of a Public Service Agency (Badan Layanan Umum) to serve as an endowment fund or an investment portfolio that begins with a donation and will provide ongoing funds for the project. The fund would create a source of what is known as blue finance, or sustainable finance, for projects that help the oceans.
"In the past, in managing blue finance, we have sometimes relied on donations from other countries and donors, which eventually becomes problematic when the donor funds run out," Yusuf explained.
Now, Yusuf is no longer involved in the M4CR and Lautra projects.
In 2023, about six months after the Short Course, he was promoted to the position of Head of Section for Bilateral Affairs at DJPPR. Yusuf believes the promotion was closely linked to the knowledge and experience gained from the Short Course.
"One of the benefits of the Short Course is that I managed to handle projects in the multilateral sector, which then led to me being entrusted by my superiors to move to manage projects in the bilateral sector," Yusuf stated.
In his new position, Yusuf remains ambitious about advancing climate finance in Indonesia by initiating communication with bilateral lenders and donors.
"I wish to create environmentally sustainable projects that can be implemented throughout Indonesia," Yusuf concluded.
[1] https://www.climate.gov/news-features/understanding-climate/climate-change-global-temperature#:~:text=Earth's%20temperature%20has%20risen%20by,0.20%C2%B0%20C)%20per%20decade.
https://ppid.menlhk.go.id/berita/siaran-pers/6889/perkuat-dukungan-internasional-untuk-world-mangrove-center-klhk-gelar-talkshow-di-cop27-unfccc
[2] https://www.worldbank.org/in/programs/indonesia-sustainable-landscapes-management-program/practice
[3] https://jikalahari.or.id/kabar/klipingberita/bank-dunia-beri-pinjaman-rp-6-triliun-untuk-restorasi-mangrove-ri/
[4] https://www.antaranews.com/berita/3828543/riau-dapat-bantuan-bank-dunia-rp800-miliar-buat-rehabilitasi-mangrove
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