GGGI Indonesia: Expert, Development of Policy Recommendation for Financing Institutions in Accessing GCF

INTRODUCTION TO GGGI

The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page. 

The Global Green Growth Institute (GGGI) requires the services of a qualified expert, the Climate Finance Sr. Advisor for the development of policy recommendations for financing institutions to access the GCF (hereafter referred to as “the Consultant”). The consultant shall work under the guidance of the NDA and GGGI team and attend regular coordination meetings with the NDA and GGGI with the scope of work as listed below:

1. Conduct desk research, compile, and assess the most updated studies, policies, and institutional regulations in Indonesia in relation to:

• Requirements for GCF accreditation to become a Direct Access Entity (DAE);
• Sustainable finance;
• Green banking;
• Climate-related reporting and disclosure;
• Role of banking institutions in climate transition;
• Overall readiness of financing institutions in Indonesia in assessing, reporting, and disclosing climate-related matters

2. Develop detailed work plan, methodology, and timeline for the accomplishment of the task.

3. Conduct interviews, consultations and moderate the discussions with stakeholders, if needed.

4. Develop one document with policy recommendations and propose a strategy that strengthens institution and governance of the Financing Institutions (FIs) to develop and implement climate change projects, as well as access international climate funding. The document will be submitted to the Ministry of Finance and Financial Services Authority (Otoritas Jasa Keuangan – OJK). The recommendations shall be based on the current landscape of commercial financial institutions in Indonesia including national, international, private, and state-owned institutions such as Special Mission Vehicles under the Ministry of Finance (eg. PT SMI). It shall be developed based on the analysis and results from the gap assessment study conducted for PT SMI, Bank Artha Graha Internasional and Bank CIMB Niaga.

5. Lead the consultation with Ministry of Finance and OJK to discuss and confirm the policy recommendations.

6. Participate in regular meetings and facilitate information sharing with the NDA, GGGI and partners. Prepare and give presentations as requested.

The Consultant will report to the Readiness Project Manager at GGGI Indonesia.  

 

PROJECT BACKGROUND

Based in Seoul, Republic of Korea, the Global Green Growth Institute (GGGI) is an intergovernmental organization founded to support and promote a model of economic growth known as “green growth”, which targets key aspects of economic performance such a poverty reduction, job creation, social inclusion, and environmental sustainability. GGGI works with countries around the world, building their capacity and working collaboratively on green growth policies and green investment projects that can impact the lives of millions. The organization partners with countries, multilateral institutions, government bodies, and private sector to help build economies that grow strongly and are more efficient and sustainable in the use of natural resources, less carbon intensive, and more resilient to climate change.

Currently, GGGI supports the Government of Indonesia (GoI) under the joint GoI-GGGI Green Growth Program (GGP, “the Program”). The Program aims to demonstrate that green investments can become the norm both for investors and planners, ultimately improving the quality of economic development for more environmental sustainability and social inclusion. Through the Program, GGGI collaborates with the Ministry of Development Planning (BAPPENAS), the Coordinating Ministry of Economic Affairs, Ministry of Finance, Ministry of Energy and Mineral Resources, Ministry of Environment and Forestry, PT Sarana Multi Infrastruktur (“PT SMI”) and others.

GGGI and the Fiscal Policy Agency (FPA) implement the Green Climate Fund (GCF) readiness and preparatory support project (“the Readiness Project”) in Indonesia. The FPA is the National Designated Authority (NDA) of the GCF in Indonesia, i.e., the agency through which Indonesia and the GCF interact and communicate. In September 2022, the FPA started the 3-year Readiness Project “Enhancing Indonesia's Access to International Climate Finance and Private Sector Investments for Climate Actions” (“Readiness III”) to support the NDA in enhancing national actors’ institutional capacities to build a pipeline of climate change projects and to increase country ownership. The NDA has selected GGGI as the Delivery Partner to implement this project.

Overall, the Readiness Project aims to mobilize international climate finance and private sector investment to close the financing gap across the priority sectors identified by the Government of Indonesia. It consists of a range of activities with the objective of achieving readiness outcomes, including 1) established capacity of direct access applicants and direct access entities (DAEs) to meet and maintain the GCF accreditation standards,  2) the capacity to develop a pipeline of projects,  and 3) effectively implement GCF-funded activities.

 

OBJECTIVES OF THE ASSIGNMENT

The GCF works through its accredited entities to channel their funding to developing countries. National Direct Access Entities (DAE) are one of the GCF’s distinctive approaches designed to help developing countries increase their ownership of climate change funding and better integrate it with their national climate action plans. For the countries, obtaining direct access to climate funding allows them to flexibly tailor projects to meet domestic priorities, coordinate and monitor projects due to geographical proximity that allows for better communication among parties, and eliminate various costs associated with planning, coordination, and implementation. Direct access may also help to better integrate local context in climate projects and programs and enhance the transfer of local knowledge and experience.

Indonesia prioritizes national DAE accreditation to ensure effective and efficient engagement with AEs. Currently, priority is given to banking and financial institutions to encourage financing of small, medium, and large projects in various sectors, and enable more innovative and flexible financing instruments. Moreover, banking and financial institutions are formally regulated by Indonesia’s Financial Service Authority (OJK). Indonesia has one financial institution that is accredited as DAE, namely PT SMI, and two nominated candidate DAEs - Bank Artha Graha Internasional, and Bank CIMB Niaga.

As part of the Readiness III project, the FPA conducted a gap assessment on accreditation of the three entities to assess their institutional and resource capacity gaps and needs to meet GCF standards, apply GCF policies, and develop a high-quality project pipeline. The result of the gap assessment is validated by each institution to confirm findings and ensure the potential technical assistance activities in the proposed workplans fit their needs. Based on the validated gaps in governance and institutional capacity, the NDA plans to further support the overall readiness of Financing Institutions in Indonesia (as potential DAEs). This is to increase their interest in climate projects, accelerate the process of their GCF accreditation, and to help prepare a high-quality project pipeline. A document with policy recommendations will be developed to build institutional and governance capacity of Financing Institutions in Indonesia particularly by addressing the needs of PT SMI (existing DAE), Bank Artha Graha Internasional and Bank CIMB Niaga (nominated FIs). The Climate Finance Sr. Advisor (hereafter referred to as “the Consultant”) will work closely with the GGGI Readiness Team and the NDA.

 

DELIVERABLES AND PAYMENT SCHEDULE

No	Description	Deliverable	Payment Term	Amount
1	Deliverable 1	Submission of inception report. It should comprise: - Detailed work plan; - Proposed methodology and timeline for the accomplishment of the tasks as described in the Scope of Work; - One page of proposed outline of the study; - Report of kick off meetings conducted.	3 weeks after contract being signed	20% (USD 1,600)
2	Deliverable 2	Submission of draft reports, which consist of: - Summary on the findings from desk research; - Draft policy recommendation with the objective for FIs to address the gap wihtin institutional capacity and governance in developing and implementing climate change projects.	8 weeks after contract being signed	30% c(USD 2,400)
3	Deliverable 3	Submission of final policy recommendations which are confirmed with Ministry of Finance and OJK	12 weeks after contract being signed	50% (USD 4,000)

Notes:

• The Consultant is to provide his/her own equipment to produce all deliverables.
• The Consultant shall submit the report in electronic versions readable by a Microsoft Office application.
• All outputs must be in English.
• Final deliverable must be approved by GGGI. The Consultant shall consider the comments and necessary revisions proposed to provide a final version of the deliverable in a timely manner.

 

EXPERTISE INFORMATION

He or she must have the following qualifications:

• Advanced degree (preferably a PhD) in finance, economics, public administration, international development or relevant fields;
• At least 8 years of professional experience in climate investment/finance or related initiatives is a must;
• An extensive knowledge of the climate investment landscape in Indonesia;
• Existing network in Fiscal Policy Agency, Ministry of Finance and Financial Services Authority (Otoritas Jasa Keuangan – OJK) is desirable;
• Existing network in financing institutions, preferably with the decision makers, is desirable;
• A proven track record of working on complex and politically sensitive issues with government, the private sector and international actors;
• A good understanding of the Green Climate Fund (GCF) is highly desirable;
• Demonstrated experience in assessing institutional policies and frameworks;
• Proven ability to communicate clearly and effectively in written reports and other publications both in English and Bahasa Indonesia, previous writing examples might be requested.
• Demonstrated strong interpersonal and motivational skills and sensitivity to the local environment as well as the ability to work with minimal supervision.

 

ADMINISTRATIVE INFORMATION

In order to be considered for the position, the candidate must meet the minimum qualification listed below. Consideration and selection will be based on a panel evaluation of the evaluation criteria factor below. Please note that only shortlisted/finalist applicants will be interviewed or contacted. GGGI does not pay for any expenses associated with the interviews unless expenses are pre-authorized. Reference check will be conducted on those candidates selected for an interview. The applicant’s references must be able to provide substantive information about his/her past performance and abilities.

Interviews and a writing exercise may be requested. Applicants are required to prepare a brief narrative demonstrating how prior experience and/or education and training address selection criteria factors listed below:

1. Professional Competency (10 points): Advanced degree (preferably a PhD), in finance, economics, public administration, international development or relevant fields;

2. Experience (40 points): At least 8 years of professional experience in climate investment/finance or related initiatives is a must; A proven track record of working on complex and politically sensitive issues with government, the private sector and international actors; Demonstrated experience in assessing institutional policies and frameworks; Existing network in Ministry of Finance, Financial Services Authority (Otoritas Jasa Keuangan – OJK) is desirable; Existing network in financing institutions.

3. Communication (10 points): Proven ability to communicate clearly and effectively in written reports and other publications both in English and Bahasa Indonesia, previous writing examples might be requested. Demonstrated strong interpersonal and motivational skills and sensitivity to the local environment as well as the ability to work with minimal supervision.

5. Technical Knowledge (40 points): An extensive knowledge on climate investment landscape in Indonesia; Understanding of the Green Climate Fund (GCF) is highly desirable;

 Maximum Points Available: 100

 

At GGGI’s discretion, reference checks and interviews may be conducted as part of the evaluation process.

Applicants must also include in their application package as follows:

1. A cover letter of no more than 3 pages that demonstrates how the candidate’s qualifications meet the work requirements;
2. A curriculum vitae which, at a minimum, describes education, latest experience and career achievements;
3. Names, current and accurate contract numbers (email and phone) of three professional references that have knowledge of the applicant’s abilities to perform the duties set forth in the solicitation.

 

All of the above information must be included in the application package in order for the package to considered complete.

Interested candidates should send the above information directly in the link https://careers.gggi.org/vacancy/

All application submitted by GGGI website must be no later than 17th June 2023 at 5:00 p.m. Korean Standard Time (KST). Application submitted after the deadline will not be considered Application. Cover Letter, and CV must be sent in English. A consortium, or a firm may not be engaged for the individual consultant assignment.

 

Child protection – GGGI is committed to child protection, irrespective of whether any specific area of work involves direct contact with children. GGGI’s Child Protection Policy is written in accordance with the Convention on the Rights of the Child.