USAID Announces Two Projects Worth $71.8 Million to Help Indonesia Address the Climate Crisis

The U.S. Agency for International Development (USAID) is investing $71.8 million over five years, subject to the availability of funds, to support Indonesia in tackling the global climate crisis. This new work will help Indonesia balance inclusive economic growth and sustainable development with greater renewable energy use and lower greenhouse gas emissions. 

The $32.7 million USAID Sustainable Environmental Governance Across Regions (SEGAR, or “fresh” in Indonesian) project, implemented by Chemonics International, Inc., will bring the government, businesses, and local communities together to make business-as-usual commodities production less harmful to the environment and more profitable for local farmers and businesses. At the same time, USAID SEGAR will work with committed local governments to strengthen environmental governance that decreases emissions from unsustainable land use and reduces threats to biodiversity. Through the SEGAR project, USAID is expected to bring 7 million hectares of tropical forest and peatland under improved management, help mobilize up to $45 million of public and private climate finance by 2026, and reduce 55 million metric tons of CO2e—the equivalent of removing nearly 12 million cars from the road for a year. 

The $38.8 million USAID Sustainable Energy for Indonesia’s Advancing Resilience (SINAR, or “beam of light” in Indonesian) project, implemented by Tetra Tech ES, will expand Indonesia’s sustainable, reliable, and equitable energy services, advancing transformation of the energy sector toward a net-zero emissions future. USAID, through the SINAR project, is expected to mobilize $5 billion worth of private and public financing for investments in renewable energy, energy efficiency, and other advanced energy systems. The project will also assist with the installation of 2,000 megawatts of renewable energy, improving access to energy for five million Indonesians.

These activities build on decades of USAID’s partnership with the Government of Indonesia, the private sector, and other partners to combat climate change, protect forests and biodiversity, reform and enhance the energy sector, curb environmental pollution, and increase prosperity for Indonesian families and communities.