IDH – Indonesia Green Taxonomy (TKBI–AFOLU) & Deforestation-Free Finance Systems
PlanB is supporting IDH – The Sustainable Trade Initiative in the development and operationalisation of Indonesia’s Green Taxonomy for the Agriculture, Forestry and Other Land Use (AFOLU) sector. This assignment focuses on translating national deforestation-free policy ambitions into practical financial instruments that can be applied by banks, investors, and agri-businesses.
The project addresses one of the key bottlenecks in sustainable finance in Indonesia: the gap between sustainability policy, banking regulations, and real-world smallholder and SME financing. PlanB’s role is to bridge this gap by designing technical eligibility criteria, financing logic, and verification mechanisms that allow financial institutions to confidently finance deforestation-free production systems.
Key activities include:
- Translating deforestation-free principles into bankable eligibility rules under the TKBI–AFOLU framework
- Aligning taxonomy definitions with EUDR, Indonesian SRN, and banking risk management requirements
- Designing risk-sharing and pipeline mechanisms to unlock lending for the “missing middle”
- Developing harmonised MRV, reporting, and verification templates for lenders
- Structuring linkages between buyers, banks, and landscape programs for blended finance deployment
This assignment positions PlanB at the center of Indonesia’s developing deforestation-free financial architecture, ensuring that sustainability requirements are not only regulatory concepts, but practical tools for capital mobilisation into climate-smart and traceable landscapes.
