RRI.CO.ID, Jakarta - The World Wide Fund for Nature (WWF) Indonesia is urging a transformation of the country’s forest financing system, warning that current funding flows are insufficient to protect forests and achieve national environmental targets.

Sustainable Finance Manager at WWF Indonesia, Risyad Tri Setiaputra, highlighted that the financing gap in the forestry sector reaches around USD 5 billion annually.

“Right now, destructive financing outweighs conservation funding. If this imbalance is not corrected, achieving national environmental goals will become increasingly difficult,” he said during a discussion titled “Closing the Forest Financing Gap in Indonesia” in Jakarta on Wednesday, April 8, 2026, as quoted by Antara.

A joint study by WWF and the Conservation Strategy Fund (CSF) found that positive financial flows to forestry amount to roughly USD 244 million per year, while negative flows -- largely from land-based private sector activities -- reach USD 3.4 billion.

CSF Indonesia Country Director Desta Pratama said this disparity underscores the need to redirect investments toward environmentally friendly activities. “Shifting investment priorities is crucial to reduce pressure on forests and ensure financing supports long-term ecosystem sustainability,” he explained.

The analysis also revealed that Indonesia requires about USD 5.3 billion annually to meet its national forestry policy targets, highlighting significant room for strengthening green financing.

Risyad emphasized that transforming the financial system is essential, including through instruments such as green bonds and credible carbon markets, alongside stronger transparency and environmental risk management.

WWF and CSF believe that collaboration among government, the private sector, and civil society will be key to accelerating reforms in forest financing. Such efforts, they argue, are vital not only for meeting climate commitments but also for safeguarding Indonesia’s forests and supporting community livelihoods.

This call for reform reflects growing recognition that sustainable financing is as critical as conservation itself in ensuring Indonesia’s forests remain a cornerstone of both biodiversity and national development. ***