GGGI supports the NDA and KEMITRAAN in developing a concept note for a financing facility of USD 10 million dedicated to adaptation projects for national CSOs and the Micro, Small, Medium Enterprises (MSMEs) that seek funding for micro-scale projects. The Concept Idea titled “Advancing Adaptation Finance Facility (AFF) to Highly Vulnerable Communities in Central and Eastern Parts of Indonesia” has been developed for KEMITRAAN as the Accredited. AFF aims to promote climate change adaptation projects in compliance with the Indonesian National Adaptation Planning (NAP) and GCF Indonesia Country Programme Document prioritizing vulnerable areas indicated in the Vulnerability Index Data Information System. AFF is expected to increase both climate finance access and the capacity of local actors to adaptation projects.
Currently, there is limited study in Indonesia’s context on assessing potential delivery mechanisms to channel financial resources at the sub-national level, particularly to target the most vulnerable areas and groups impacted by climate change. Initial studies have been undertaken covering broad institutional and capacity gaps for climate change adaptation as baselines of existing gaps that AFF is expected to close the barriers. However, there is a need for a study to identify areas of opportunity where microfinance could play a role in the AFF program for MSMEs, CSOs and local governments (LGs). The findings from this specific study will help the NDA and KEMITRAAN strengthen the AFF’s overall designs and framework by incorporating the potential role and contribution of microfinance.
The Global Green Growth Institute (GGGI) requires the services of a qualified expert (hereafter referred to as “the Consultant”) to identify and assess the role of microfinance for the development of AFF and recommend a potential design for AFF where innovative financing instruments in microfinance could fit and play a role in the facility.
The Consultant will be responsible for the following tasks and duties:
1. Present an overall approach to the study preparation at a kick-off meeting with the NDA, GGGI, and KEMITRAAN to establish a common understanding of the scope of work, approach and timeline.
2. Conduct desk research and analysis on:
- The report study on Enabling Environments for Private Sector Engagement in Climate Change Adaptation Projects, study on Market Assessment on the Microfinance Sector for Peatlands, and other similar studies on gaps and barriers to access climate funding for adaptation projects, particularly for micro-scale projects;
- Studies related to microfinance in Indonesia, including challenges and lessons learned;
- Other countries’ experiences related to microfinance’ role in funding adaptation projects including challenges and lessons learned.
3. Conduct an assessment study on the role of microfinance. The study will be based on desk research and analysis (refer to point 2 above) and stakeholder consultations in a form of surveys, interviews, FGDs, etc. The consultant, will map the potential stakeholders to be consulted with, which should include Government Institutions, the Indonesian Environment Fund (BPDLH), Microfinance Institutions (MFIs), and other related stakeholders at national level. The study will map and present an overview of Indonesia's landscape in terms of current status, roles, and barriers in funding micro scale adaptation projects, including challenges faced by the MFIs and their risk appetite to provide microfinance and engage in adaptation projects, and overall challenges faced by MSMEs, CSOs, and local governments in accessing the funding.
4. Based on the findings from the study, provide:
a. Summarized information on gaps and barriers to access climate funding for adaptation projects and the current landscape of microfinance in Indonesia including its institutional barriers providing adaptation funding, as well as summarized lessons learned from other countries as identified from point 2 and 3 above;
b. Matrix on lists of MFIs with their identified risk appetite. Based on the matrix, provide recommendation on which MFIs is deemed suitable to be the potential partner(s) in the AFF Program;
c. Recommendation on how the AFF will address key barriers (as summarized in point 4.a), including recommendation on the applicable designs and framework for the AFF grant window for each of the targeted area (i.e. scope, cost categories, eligibility criteria for the facility’s investment window).
d. Recommendation on applicable designs and framework where microfinance could be incorporated to AFF program.
5. Prepare high-quality presentations on the study result.
The Consultant will report to the GGGI Green Investment Specialist.
The expected deliverable, delivery timeline, and payment schedule are as follow:
Draft Outline of the study including stakeholder mapping
2 weeks after signing contract
Draft report of the study
8 weeks after signing contract
Final report for the study, including:
Powerpoint presentation on the study summary should be provided.
11 weeks after signing contract
Total fee: USD 18,000 depending on candidate's credentials
- The draft and final reports shall be written in English.
- In performing his/her tasks, the Consultant will work closely with the NDA, GGGI (the Readiness Project team), and KEMITRAAN. We foresee the Consultant to perform the work virtually due to travel restrictions related to the COVID-19 pandemic.
- The consultant is to provide his/her own equipment and expendable supplies to produce all deliverables.
S/he 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:
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:
All of the above information must be included in the application package in order for the package to considered complete. Application, Cover Letter, and CV must be sent in English. All application submitted by GGGI website, must be in GGGI Seoul, no later than the date to close, Korean Standard Time (KST). Applications submitted after the deadline will not be considered. A consortium, or a firm may not be engaged for the individual consultant assignment.
Value Added Tax clarification
Individual consultant without Indonesian tax ID: In accordance to Directorate General Taxation number SE-145/PJ/2010 VAT is applicable on foreign services rendered by international entities not registered in Indonesia are subject to 10% VAT.
Withholding tax on foreign services rendered/withholding tax Art 26
Payment of royalties, interest, and service fees by resident taxpayer to a non-resident taxpayer are subject to 20% withholding tax Art 26. However, if the payment is made to a resident of a country with which Indonesia has signed a tax treaty, the withholding (WHT) may be reduced or exempted. Nonresident taxpayer should get the DGT1 form certified by their country of residence tax authority to be exempted from WHT. Please visit the following sites to download the DGT1 form. (http://www.pajak.go.id/content/formulir/10198/form-dgt-1)
Withholding tax on local purchase of goods and services
Payments of certain types of income paid to resident taxpayers are subject to withholding Art 23 at a rate of 15% (for dividend interest royalties) and 2% (rental of asset, other than land and building [which is subject to final tax Art4(2)] and services such as technical, management, consulting services, etc.
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.