Indonesia’s Climate Finance Governance: Policy Paradox, Fiscal Symbolism, and Fragmentation

Abstract

This article examines climate finance governance in Indonesia through the lens of public administration, focusing on policy paradox, fiscal symbolism, and institutional fragmentation. Drawing on qualitative evidence from policy documents, institutional mapping, and actor interpretations, this article shows that Indonesia has developed a relatively advanced climate finance architecture through the Paris Agreement commitment, Nationally Determined Contribution, Climate Budget Tagging, green sukuk, BPDLH, carbon economic value instruments, and low-carbon development planning. However, the findings reveal that formal institutionalization does not automatically produce coherent implementation. Climate finance operates within a paradoxical administrative field where ambitious climate commitments coexist with fiscal prudence, sectoral priorities, project-based implementation, and fragmented authority. Green fiscal instruments function not only as technical mechanisms, but also as symbolic devices that strengthen state legitimacy in domestic and international arenas. At the same time, institutional fragmentation limits the capacity of public administration to translate climate finance into substantive transformation. The article contributes to policy paradox theory by showing how climate finance governance is fiscally mediated, symbolically legitimized, and institutionally reproduced in a developing state context. The study concludes that improving climate finance governance requires stronger integration between fiscal allocation, planning, fund management, legislative oversight, and public accountability.