Strategy of Managing International Environment Aid Sustainability in Post-Reform Indonesia

Abstract

Climate change and environmental degradation are several of the biggest contributing threats to business and economic sustainability, given the vulnerability of Indonesia’s geography and financial architecture. The financial crisis on the West has brought opportunities for Indonesia to pursue another source of assistance with less political intentions and loose concessional economic reforms. The Paris Agreement in 2015 also offers flexible mechanisms for developing countries to meet its target. DAC countries are known to contribute support of poverty reduction and environment assistance, while most of non-DAC countries build its core assistance in infrastructure development programs. However, other non-DAC countries demonstrate significant growth in environmental aid, as well as its capacity of delivery. This paper will establish an analysis to balance Indonesian dependence of foreign assistance for environmental conservation between those two types of donor countries. Using international assistance approach, this study will try to establish an argument prior to policy input for above circumstances. The study finds that there are no coherence and communications among policies and stakeholders in terms of aid compatibility to national development programs, funding schemes, harmonization of policies, valid measurements of emission reduction commitments.
 Keywords: foreign aid, environment aid, Indonesia, development policy