The Impact of Norway's FOLU Grant on Indonesia's Green Growth: An Input-Output Analysis
DOI:
https://doi.org/10.55448/j5d70945Keywords:
Green Economy, Indonesia’s Development, Norway’s Grant, FOLU Net Sink 2030, Input OutputAbstract
Multinational financing facilities to improve environmental quality had been implemented by Indonesia at the fourth quarter of 2022, as Norway’s grant about USD 56 under the Forestry and Other Land Use (FOLU) Net Sink 2030 program. This study aims to assess the effectiveness and impact of the Norwegian grant on the development of Indonesia’s green economy using Indonesia’s 52-sector Input-Output analysis 2016 that already updated to 2025, interviews and documentation. This research finds that Norway’s grant was allocated under a Result-Based Contribution (RBC) scheme, achieved an effectiveness rate of 52% in 2023. It also boosted economic growth through increased output (Rp735,39 billion) and gross value added (Rp607,80 billion), enhanced by downstream forest product industries. Nonetheless, optimization gaps remain, particularly in governance quality, stakeholder synergy, and community-based downstream forestry initiatives.
References
Adusei, & Elizabeth. (2020). The Impact of Foreign Aid on Economic Growth in Sub-Sahara Africa: The Mediating Role of Institutions. MPRA Paper No. 104561. https://mpra.ub.uni-muenchen.de/104561/
Ariutama, I. G. A., Prasetyo, E., & Saputra, A. H. (2021). Economics Development Analysis Journal the Impact of Asian Games 2018 on Indonesian Economy Article Information. Economics Development Analysis Journal, 4, 393–403. http://journal.unnes.ac.id/sju/index.php/edaj DOI: https://doi.org/10.15294/edaj.v10i4.44666
Armelly, A., Rusdi, M., & Pasaribu, E. (2021). Analisis Sektor Unggulan Perekonomian Indonesia: Model Input-Output. SOROT, 16(2), 119. https://doi.org/10.31258/sorot.16.2.119-134 DOI: https://doi.org/10.31258/sorot.16.2.119-134
Azhari, W. F., & Purnomo, D. (2022). Analisis Input – Output: Dampak Sektor Pertanian terhadap Perekonomian, Pendapatan Rumah Tangga, dan Kesesempatan Kerja. Journal of Economics Research and Policy Studies, 2(3), 132–144. https://doi.org/10.53088/jerps.v2i3.417 DOI: https://doi.org/10.53088/jerps.v2i3.417
Beckmann, A., Sivarajah, U., & Irani, Z. (2021). Circular Economy versus Planetary Limits: A Slovak Forestry Sector Case Study. Journal of Enterprise Information Management, 34(6), 1673–1698. https://doi.org/10.1108/JEIM-03-2020-0110 DOI: https://doi.org/10.1108/JEIM-03-2020-0110
Climate Change Performance Index. (2024). Top 3 Remain Empty as Countires Must Speed Up Implementation. Https://Ccpi.Org/Countries/.
Depinto, D. P., Adry, M. R., & Putra, H. S. (2022). Pengaruh Bantuan Luar Negeri Terhadap Pertumbuhan Ekonomi Negara ASEAN. Jurnal Kajian Ekonomi Dan Pembangunan, 4(1), 35–44. http://ejournal.unp.ac.id/students/index.php/epb/index DOI: https://doi.org/10.24036/jkep.v4i1.13305
Dhakal, K., Harry, A., Spooner, G., Ralph, J., Findlay, S., & Hamilton, S. (2024). Economic Impact of Forest Based Activities in Scotland.
DJPPI KLHK. (2023, February 21). Debriefing of the COP28 UNFCCC and Its Outcomes. Https://Www.Ditjenppi.Org/.
Fazlly, S. K. (2024). Foreign Aid and Economic Growth: An Econometric Study of Afghanistan. Journal of Indonesian Applied Economics, 12(1), 46–54. https://doi.org/10.21776/ub.jiae.2024.012.01.4 DOI: https://doi.org/10.21776/ub.jiae.2024.012.01.4
Fransiska Berutu, M. (2016). Kepentingan Pemerintah Norwegia dalam Kerjasama Penanganan Deforestasi dan Degradasi Hutan di Indonesia Melalui Mekanisme REDD+. Journal of International Relations, 2(3), 11–21. http://ejournal-s1.undip.ac.id/index.php/jihiWebsite:http://www.fisip.undip.ac.id
International Trade Administration. (2024, January 20). Green Technologies Norway. Https://Www.Trade.Gov/.
Kementerian Lingkungan Hidup dan Kehutanan. (2022). FOLU Net Sink. Https://Www.Menlhk.Go.Id/Program/Folu-Net-Sink/.
Mawardi, R. (2019, March 4). Penelitian Kualitatif: Pendekatan Grounded Theory. Perbanas University. https://dosen.perbanas.id/penelitian-kualitatif-pendekatan-grounded-theory/
Millah, M. A. Z. (2024). Kepentingan Norwegia Kerja Sama dengan Indonesia dalam Reducing Emission from Deforestation and Forest Degradation (REDD+) TAHUN 2015-2021.
Miranda, F. C. T. (2021). Is Norway on the pathway to a Green Economy? Evidence on decoupling between GDP and environmental pressure [Norwegian University of Life Science]. https://www.nmbu.no/fakultet/landsam/institutt/noragric
Narenda, B. H., & Salim, A. G. (2020). Bunga Rampai: Dukungan IPTEK Rahabilitasi Hutan dan Lahan dalam Pemulihan Fungsi Daerah Aliran Sungai (Pratiwi, B. H. Narenda, & A. G. Pamungkas, Eds.; Cetakan Pertama, Vol. 8). Penerbit IPB Press.
NICFI. (2022). NICFI: Indonesia. Norwegian Ministry of Climate and Environment. https://www.nicfi.no/partner-countries/indonesia/#facts-about-indonesia
NICFI. (2023, December). COP28/Dubai: Indonesia and Norway Strengthen Joint Efforts to Beat Climate Change. Norwegian Ministry of Climate and Environment.
NOAA National Centers for Environmental Information. (2024, June). Climate at a Glance: Global Time Series. Https://Www.Ncei.Noaa.Gov/Access/Monitoring/Climate-at-a-Glance/Global/Time-Series.
Nurprabowo, A., & Rahayu, S. (2023). Kajian Strategis Seri Energi Hijau: Investasi Sektor Hilirisasi hasil Sumber Daya Hutan.
PEFC. (2019, July 25). What is PEFC? Pefc.Org. https://www.pefc.org/discover-pefc/what-is-pefc
Pramesti, M. T. (2023). Kausalitas Pinjaman-Hibah Luar Negeri terhadap Pertumbuhan Ekonomi, dan Kemiskinan di Indonesia (Causality of Foreign Loans-Grants on Economic Growth, And Poverty). Jurnal Manajemen, Bisnis Dan Organisasi (JUMBO), 7(3), 509–523. http://ojs.uho.ac.id/index.php/JUMBO
Ratna Dewi, I., Wiguna, Y., & Ocean Louis Ishaac Noya, A. (2023). Enigma of Nickel Export Ban: Understanding Its Impact through Input-Output Analysis. Jurnal Ekonomi Pembangunan, 21(02), 141–160. DOI: https://doi.org/10.22219/jep.v21i02.28568
Rosmika, N. (2021). Ekonomi Sektor Pertanian dan Pertumbuhan Ekonomi Indonesia: Analisis Input Output 2016. MEDIAN: Jurnal Ilmiah Populer, 4, 24–35.
Saidah, F., Nasruddin, Madnasir, & Fasa, M. I. (2023). Penerapan Green Economy dalam Upaya Peningkatan Ekonomi Masyarakat Melalui Pemanfaatan Lahan Kosong Pekarangan Rumah: Studi Literatur Riview. Jurnal Masharif Al-Syariah: Jurnal Ekonomi Dan Perbankan Syariah, 8(2), 997–1007. https://doi.org/http://dx.doi.org/10.30651/jms.v8i2.16422
Sianturi, V. B. E., Rawana, & Bowo, H. (2024). Potensi Cadangan Karbon pada Tanaman Bambu (Bambusoideae) di Hutan Rakyat Desa Wisata Turgo Merapi, Daerah Istimewa Yogyakarta. Agroforetech, 2(2), 924–935.
Tarigan, R. (2005). Ekonomi Regional: Teori dan Aplikasi (Edisi Revisi, Vol. 1). Bumi Aksara.
Todaro, M. P., & Smith, S. C. (2015). Economic Development. (E. Harlow, Ed.; 12th ed., Vol. 12). Pearson Education Limited.
Trinh, B., & Phong, N. V. (2013). A Short Note on RAS Method. Advances in Management & Applied Economics, 3(4), 1792–7552.
UN Environment Programme. (2024). Keeping the Promise: Annual Report 2023.
Wijaya, L., & Witri Elvianti. (2022). Factors Behind the Establishment and Fulfillment of Norway-Indonesia REDD+ Partnership (2010-2019). Jurnal Asia Pacific Studies, 6(2), 98–114. https://doi.org/10.33541/japs.v6i2.3773 DOI: https://doi.org/10.33541/japs.v6i2.3773
Published
Issue
Section
License
Copyright (c) 2026 Jurnal Ekologi, Masyarakat dan Sains

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors of articles published in Jurnal EMS are permitted to self-archive the published/PDF version anywhere.
























