Sustainable Investment for Indonesia’s Green Economy : Strategic Lessons Learned from Five Years of MCA-Indonesia’s Green Prosperity Project

(Jakarta) 18 April 2018 – In five years, the Green Prosperity Project of MCA-Indonesia has paved the way for poverty reduction through sustainable economic growth. Numerous lessons learned and achievements are accomplished in the journey, which aims to support commitment of Government of Indonesia for sustainable and equitable economic growth, and to assist the government to reach its target for greenhouse gases emission reduction.

“Today, we want to share lessons learned from the Green Prosperity Project that is estimated to reduce more than 1 million metric ton of greenhouse gases emission annually, or equal to emission of 212,000 cars every year. This success is supported by various investment models and involvement of stakeholders, from the community, local and central government, to the private sector,” said Executive Director of MCA-Indonesia, Bonaria Siahaan.

MCA-Indonesia implemented Participatory Land Use Planning (PLUP) to provide spatial certainty for communities, government and investors. Sustainable Cocoa Partnership Grants, Green Prosperity Partnership Grants and Renewable Energy Co-Financing Grants strived to involve the private sector and civil society to co-finance and conduct efforts to increase productivity, through sustainable agriculture practices and renewable energy utilization. Renewable Energy Grants for Community in four remote locations mobilized private sector to invest, and empower communities as majority shareholders and operators of the power plants. Community-based Natural Resources Management Grants empowered grassroots communities to manage natural resources around them. Meanwhile, Green Knowledge Grants invested for projects that collect and disseminate knowledge about sustainable economy.

In five years, PLUP was implemented in 40 districts, while 363 villages were facilitated to map their boundaries and resources.12.3 MW of renewable energy has illuminated 8,808 houses and public facilities in remote areas. 15,832 hectares of peatland are rewetted through construction of 232 canal blockings. 197,906 hectares of land has been improved through community-based natural resources management. 121,143 cacao farmers have implemented agricultural practices that are more productive and environmentally friendly. 440 Green Knowledge products were produced and Indonesia’s first renewable energy operator certification institution was established.

However, these lessons learned and achievement should not stop here. To ensure sustainability of green economy investment in Indonesia, today MCA-Indonesia conducts the Policy Dialogue on Sustainable Strategy for Green Prosperity Investment in Indonesia.

“This event provides space for interaction between project implementers and potential co-financiers, including local governments and donors. We hope projects supported by the Green Prosperity Project will be sustained by funding and co-financing from government agencies, donors and investors,” said Bonaria Siahaan.

About Millennium Challenge Account – Indonesia (MCA-Indonesia)

MCA-Indonesia is the implementing entity of the Compact Grants from Millennium Challenge Corporation (MCC), which supports US Strategic Partnership with Indonesia. MCA-Indonesia aims to reduce poverty through economic growth, and manages the following main projects: (1) Green Prosperity, (2) Community-Based Health and Nutrition to Reduce Stunting, and (3) Procurement Modernization.


About Millennium Challenge Corporation (MCC)

MCC is an innovative and independent agency of the US government, which aims to help alleviate poverty globally. Formed by the US Congress in 2004, MCC has distributed Compact Grants worth US $ 11.2 billion for 27 countries committed to good governance, economic freedom and investments in their citizens. Compact Grants are competitive, meaning that the candidate countries must compete in a transparent selection process.

MCC holds the principle of country-led solutions and country-led implementation, so that the countries that receive the grants have the discretion and authority to identify problems and solutions, and to develop and implement its program.