Development of a National Strategy on Innovative Finance in Indonesia (individual or team).
Background
SNV is an international not-for-profit development organisation, working in 38 countries in Africa, Asia, and Latin America with more than ten years of experience in Indonesia. Across Southeast-Asia SNV has been working with the private sector and local communities on climate smart agriculture, supply-chain development and sustainable livelihoods in mangroves and aquaculture. SNV is a global leader in the engagement of private sector in ecosystem approaches and Nature-based Solutions (NbS), building partnerships for landscape management, supporting independent and smallholder farmers to improve their production practices and prevent further deforestation and instead contribute positively to nature and biodiversity, and leveraging innovative sources of finance to sustain and scale impact.
SOLUSI
Inadequate landscape management and unsustainable land use threaten the Indonesian ecosystems. SOLUSI is a project funded by the International Climate Initiatives to mitigate the degradation of land and seascapes in Indonesia, increasing the resilience of ecosystems and thereby promoting climate-resilient livelihoods. National, sub-national, and local stakeholders improve spatial and development planning by incorporating principles of green and blue economy. The project promotes sustainable business models, ecotourism as well as integrated waste management, access to sustainable finance, and supply chain partnerships. Upscaling will enhance national planning processes and promote a strong interest among farmers—including young people, women, and indigenous groups.
The project encompasses interventions at both the national and regional levels in three provinces: Central Java, Bangka-Belitung Islands, and Central Sulawesi. The three regions are Bappenas focus areas regarding the land- to seascape integrated approach. They are diverse in stages of conservation, restoration and socio-economic development, coastal-marine resource management and land-use change dynamics of the diverse archipelago of Indonesia. In all three provinces, coastal areas are under pressure of degradation through the expansion of aquaculture in mangrove ecosystems, industrial land use, and unsustainable fishing. Unsustainable mineral and sand mining as well as improper waste management constitute threats to land and marine ecosystems in all provinces accounting for numerous endangered species. Biodiversity is high in all three of the provinces, with numerous endemic species.
Central Java has currently 29% of its land covered by forest (90% plantation forest). However, the province still has large-degraded areas. Afforestation measures so far focused on monoculture systems, merely increasing the extent of tree cover rather than measures that support a higher species diversity. With sea-level rise and critical watersheds, Central Java is highly vulnerable to hydro-meteorological risks. Climate vulnerability, declining water quality, and supply as well as the lack of waste management are prevailing problems. Mangrove areas cover about 56,000 ha along the northern and southern coastal areas. Local communities manage some areas with mangrove ecosystems, karst areas, and caves with below-ground water for ecotourism and other economic activities. Technical assistance is needed for spatial planning that integrates land- and seascape management, waste management, the development of non-timber forest products, salvo-fishery, and environmental services for water in the karst areas and for the protection and rehabilitation of mangrove areas.
The Belitung and East Belitung Districts of Belitung Islands Province cover an area of 1.6 m ha with 0.7 m ha covered by forest and 43,000 ha by peatland, with a population size of 1.3 m (2015). Belitung Island, comprised of Belitung Regency and East Belitung Regency, is recognized as a UNESCO Global Geopark. Mining contributes 56% of the province's income. Despite the policy of the Belitung district government to focus on geo-tourism, legal and illegal mining continue to negatively impact the functionality of the landscape. Water pollution from mining activities as well as plastic waste are increasing problems on the island. Belitung has endangered marine seascapes and upstream landscape areas. Food security is a main concern, as fast and highly paid, but harmful mining is given preference to the low wage-yielding agricultural activities. Potential commodities are pepper, rubber, honey, and palm oil. Although value chains could be improved, the income out of illegal mining is very high making it difficult for other commodities to compete.
Central Sulawesi covers an area of 6.2 m ha of which 4.0 m is forest (2013), with a population of 2.8 m people (2015). LaS are under high pressure from mineral mining, logging, and cutting of mangrove trees for firewood, dynamite fishing, destruction of coral reefs, and excessive use of fertilizers and pesticides in upstream areas that impact coastal and marine areas. Coastal habitats consist of coral reefs, seagrass, mangroves, shallow waters, bays, and deep waters with abundant reef fish, seaweed, and lobster. Downstream areas are also damaged by urban activities and tsunami impacts. The geographical location of Donggala District is close to the area destined for the new Indonesia Capital City in East Kalimantan and is intended to serve as a buffer for food security. The main commodities are cocoa, coffee, coconut, candlenuts, corn, clove, vanilla, durian, avocado, fish, and mangrove crabs. A strong need results in disaster risk management, CRL, environmental services, and climate change adaptation.
SNV is one of the implementing partners in SOLUSI alongside The German Development Agency (GIZ) as the main implementing partner, the Indonesian Biodiversity Foundation (KEHATI), and the International Centre for Research in Agroforestry (World Agroforestry Centre (ICRAF)). SNV's role is promoting sustainable business models, ecotourism as well as integrated waste management, access to sustainable finance, and supply chain partnerships.
Work Description
In the development of sustainable finance, SOLUSI will support the government of Indonesia in developing a national strategy on innovative finance mechanisms to support investment in climate-resilient livelihoods (CRL) within landscape and seascape initiatives.
The activities will include:
- Conducting a cross-cutting finance assessment and review of innovative financing mechanisms (i.e climate funds, adaptation fund, carbon markets, guarantees, Payment of Environment Services (PES)/biodiversity offsets/trust funds, blue bond, coral bond, orange bond, etc.) for climate resilience and biodiversity in LaS:
- Study on available regulatory and its gaps for the implementation of innovative finance in Indonesia.
- Stakeholder mapping of innovative finance sectors on macro, micro and meso level and their respective roles and responsibilities.
- Identification of innovative finance providers in Indonesia with their target market and financing/investment scheme.
- Developing and maintaining communication with relevant stakeholders in financial and private sectors in relation to innovative finance mechanism.
- Drafting a national strategy on innovative financing mechanisms link it to BAPPENAS initiatives refers to Draft Presidential Instruction (INPRES) on Climate Resilience, and Presidential Decree (PERPRES) 111/2022 Acceleration of SDGs implementation according .
- Arranging and conducting national and sub-national workshops to review needs and opportunities for investment in LaS development by means of national and sub-national consultation workshop.
- Arranging and conducting a national workshop to develop strategies and implementation plan of innovative finance in Indonesia.
- Formulizing the implementation plan of innovative finance in national level and its application in regional level.
Deliverables
- Inception Report : 2 weeks after start of the engagement, outlining approach and work plan (activities and timing) as well as detailed activity budget for the assessment.
- Intermediate Report : 12 weeks after start of the engagement, updating progress of the assignments including challenges, risks, and recommendations to address them.
- Final Report, which includes Draft of National Strategy on Innovative Finance Mechanism: 6 weeks before end of the assignment in draft form, 2 weeks for commenting, 2 weeks for finalizing. "Initial" refers to the fact that at later stages of project development the plan will be further detailed and updated as more data and information becomes available, and developments might have happened in the meantime.
Evaluation Criteria
- Education and professional background and experience.
- Proposed assessment methodology.
- Detailed and reasonable timeline from planning to reporting.
- Detailed and reasonable budget proposal
- Clear HSE protocol.
Desired Qualifications
- Individual of a team of consultants, with minimum 7 years of proven track record in financial sector preferably in innovative finance sector.
- Master's degree in economy, finance, or business.
- Proven experience in conducting similar assessment in Indonesia.
- Strong network with financial and innovative finance stakeholders in national level and three intervention regions of SOLUSSI.
- Excellent writing and communication skill in Indonesian and English.
Level of Effort
This is a lumpsum contract, the service provider shall deliver all the report at the end of contract.
Reporting Line
The work will be coordinated and managed by SNV in Indonesia with technical guidance and quality control from SNV's Origination Facility Safeguards Specialist. The selected consultant firm or team of consultants will be contracted to SNV, and all deliverables will be submitted to SNV and PT N-Three for final review and approval.
Payment Terms
• 20% after the inception report is approved.
• 30% after the mid-term report is approved.
• 50% after the final report is approved.
How to Apply
Please submit the proposal and relevant portfolio to indonesia-procurement@snv.org by 22nd March 2024 at 24.00 for the latest, subject "Service Provider: Development of a National Strategy on Innovative Finance in Indonesia (individual or team)". The proposal shall consist of the following:
· Proposed idea concept based on ToR
· Financial proposal
· CVs of team members
· Working experiences
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