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Madani Berkelanjutan analyzes the performance, challenges, and structural bottlenecks of the Environmental Fund Management Agency (BPDLH) in mobilizing green financing and managing climate funds in Indonesia. It underscores that while BPDLH is uniquely positioned to bridge international investments—such as result-based payments from partners like Norway and emerging mechanisms like the Tropical Forest Forever Facility (TFFF)—with domestic conservation, its operations are heavily restricted. Key obstacles include institutional rigidities, inadequate monitoring and evaluation frameworks, and unresolved audit issues from the Supreme Audit Agency (BPK) regarding revolving funds. These governance deficits restrict the agency's ability to issue resources effectively, heightening the risk of greenwashing and limiting financial accessibility for local communities and Indigenous peoples on the front lines of forest protection.

To overcome these structural limitations, the report underscores the urgent need for comprehensive legal and operational reforms that prioritize transparency, equity, and accountability. It emphasizes that current green financing schemes struggle to compete with the immediate profitability and entrenched political backing of extractive industries, such as coal mining and palm oil expansion. Consequently, the document strongly recommends that the Indonesian government and parliamentary commissions strengthen BPDLH’s institutional capacity and enforce strict social and environmental safeguards. By establishing clear legal mandates, rectifying financial management irregularities, and aligning fund distribution with genuine ecological conservation goals, BPDLH can transform into a credible and effective vehicle for achieving the nation's 2030 climate goals and long-term net-zero commitments.