April 10, 2026 | 05:22 pm
TEMPO.CO, Jakarta - Indonesia and the United Nations on Thursday, April 9, 2026, launched a joint program to support smallholders in mitigating climate risks by expanding access to financial services and strengthening their capacity to adopt sustainable agricultural practices.
The program will be implemented in East Java and Lampung, two of Indonesia’s largest food-producing provinces.
“The program's objectives align with national priorities, particularly to promote food systems transformation and sustainable development," said Leonardo A. A. Teguh Sambodo, Deputy for Food, Natural Resources, and Environment at the Ministry of National Development Planning (Bappenas), during the event, as quoted from a release received by Tempo on Friday.
According to him, this program will bolster financing access for farmers, encourage the implementation of climate-smart agriculture, improve farmers' welfare, strengthen food security, and integrate with other priority programs such as the free nutritious meal program.
Small-scale farmers are the backbone of Indonesia’s agriculture, yet they are also among those most vulnerable to climate change, according to the release. Extreme weather events, prolonged droughts, and pest outbreaks increasingly threaten smallholders’ livelihoods—posing risks not only to rural incomes, but also to national food security.
The 'Leveraging Finance to Scale Up Climate-Resilient Food Systems' joint program aims to train at least 15,000 farmers in East Java and Lampung to adopt climate-smart and innovative agricultural practices.
To support smallholders in adopting these practices at scale, the program integrates and leverages existing innovative financing mechanisms. This includes Indonesia’s climate insurance scheme, Sustainable Development Goal (SDG) Bond, Green Sukuk (shariah-compliant green bonds), and Indonesian Environment Fund (Badan Pengelola Dana Lingkungan Hidup/BPDLH).
Under the program, at least 6,000 farmers in East Java will be supported to apply sustainable farming practices in return for access to climate insurance. In parallel, the program aims to mobilize US$150 million from Indonesia’s annual SDG Bond, Green Sukuk and project-based Green Sukuk issuances to finance sustainable practices and rice biofortification for at least 300,000 smallholders.
In addition, BPDLH is expected to provide micro-loans for at least 400 Micro, Small and Medium Enterprises (MSMEs) implementing bankable agro-silvo-pastoral projects that combine crop cultivation, forestry and animal husbandry.
The program will run from 2026 to 2027 and will be 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).
“From a US$2 million Joint Programme investment, we are targeting the mobilization of US$205 million in public and private finance,” said Gita Sabharwal, UN Resident Coordinator in Indonesia.
This joint program is supported by the Joint SDG Fund, in collaboration with the UN Food Systems Coordination Hub, with contributions from the European Union and the governments of Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Monaco, the Netherlands, Norway, Poland, Portugal, Republic of Korea, Saudi Arabia, Spain, Sweden, and Switzerland.
Read: Central Java Governor Urges Farmers to Adopt Crop Failure Insurance Amid Extreme Weather
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