The Effectiveness of Official Development Assistance to Indonesia Climate Mitigation

Abstract

This research investigates the effectiveness of climate-related development aid in Indonesia’s climate mitigation. Specific objectives include assessing the contribution of official development assistance (ODA) to reducing CO2 emissions and evaluating the implementation of the Busan Principles of aid effectiveness to achieve Indonesia’s mitigation priorities and targets. We utilize a new primary dataset based on interviews with the most knowledgeable stakeholders of ODA on climate change mitigation. Additionally, we use secondary data from the annual Rio Marker and the Common Reporting Standard data of the Organization for Economic Co-operation and Development. The results show a significant correlation between climate-related development aid and CO2 emission reduction in Indonesia. Additionally, the implementation of the Busan Principles enhances aid management by fostering project ownership and increasing the involvement of civil society and private sector. The study has implications for devising an effective climate change mitigation strategy for Indonesia. It is suggested that the government of Indonesia exercise greater flexibility and dynamism in engaging with development partners.