Emerging financing approaches such as guarantee facilities, blended finance, offtake-backed financing, and technical assistance facilities offer opportunities to mobilize capital, reduce risks, and support forest-positive enterprises. At the same time, Indonesia’s sustainable finance agenda, including the Indonesia Taxonomy for Sustainable Finance (TKBI), climate finance initiatives, and green finance targets, creates opportunities to scale financing solutions that contribute to sustainable and deforestation-free supply chains.

To support stakeholder engagement and inform future initiatives, The Tropical Forest Alliance seeks a qualified consultant or consulting firm to develop a publication on Forest-Positive Financing for MSMEs in Indonesia.

  1. Objective

The objective of this assignment is to develop an evidence-based publication that examines opportunities, challenges, and innovative financing mechanisms for MSMEs operating in forest-positive and sustainable commodity value chains in Indonesia. The publication is expected to provide actionable insights and recommendations for financial institutions, investors, donors, philanthropic organizations, policymakers, private sector actors, and MSME ecosystem stakeholders.

  1. Scope of Work

The selected consultant shall undertake the following activities:

  1. Desk Review and Research

Conduct a review of relevant literature, policies, financing mechanisms, market initiatives, and existing studies related to:

  • MSME financing;
  • Sustainable finance and green finance;
  • Climate and nature finance;
  • Agroforestry and nature-based solutions;
  • Deforestation-free supply chains;
  • Forest-positive business models.
  1. Stakeholder Consultation

Conduct consultations and interviews with relevant stakeholders, including:

  • Financial institutions and banks;
  • Impact investors;
  • Donors and philanthropic organizations;
  • Corporate buyers and commodity companies;
  • Government agencies;
  • MSME ecosystem actors;
  • Technical assistance providers.
  1. Analysis and Publication Development

Analyze findings and develop a publication that assesses financing opportunities and proposes recommendations for scaling forest-positive financing for MSMEs in Indonesia.

  1. Key Themes to be Covered in the Publication

The publication should cover the following themes:

  • Innovative financing structures for forest-positive MSMEs, including guarantee facilities, blended finance, offtake-backed financing, and technical assistance mechanisms.
  • Alignment of financing with forest-positive outcomes, such as agroforestry, regenerative agriculture, NDPE compliance, traceability, livelihood improvement, gender inclusion, carbon reduction, and ecosystem restoration.
  • Opportunities to align financing mechanisms with relevant policies and initiatives, including Indonesia’s Sustainable Finance Taxonomy (TKBI), climate finance strategies, green finance targets, and jurisdictional approaches promoted by TFA, WEF, and partners.
  • The role of donors, philanthropic organizations, and catalytic capital providers in supporting forest-positive financing through guarantees, concessional financing, grants, and technical assistance.
  • Priority financing opportunities related to forest and ecosystem restoration, biodiversity conservation, nature-based solutions, sustainable commodities, and deforestation-free supply chains.
  1. Deliverables

Deliverable 1: Inception & Publication Planning

An inception report outlining the methodology, workplan, stakeholder engagement approach, and proposed publication outline.

Deliverable 2: Stakeholder Consultation Summary

A summary of stakeholder consultations, including key findings, opportunities, challenges, and emerging themes relevant to forest-positive financing for MSMEs.

Deliverable 3: Draft Publication

A draft publication for review and feedback.

Deliverable 4: Final Publication Package

A final publication package consisting of:

  • A professionally written publication (approximately 15–25 pages);
  • An executive summary (2–4 pages);
  • A presentation deck (10–15 slides) highlighting key findings and recommendations.
  1. Consultant Qualifications

The consultant or consulting firm should demonstrate:

  • At least 7 years of relevant experience in sustainable finance, climate finance, impact investing, MSME development, forestry, agriculture, or related fields.
  • Advanced degree in finance, economics, public policy, environmental studies, or a related field; or equivalent professional experience.
  • Proven experience conducting research, policy analysis, and stakeholder consultations.
  • Familiarity with Indonesia’s sustainable finance landscape, including relevant policies, regulations, and market developments.
  • Experience producing analytical reports, policy papers, knowledge products, or publications for governments, development partners, financial institutions, or international organizations.
  • Strong stakeholder engagement and facilitation capabilities, including experience working with public, private, and civil society actors.
  • Excellent research, analytical, writing, and communication skills in English. Proficiency in Bahasa Indonesia is highly desirable.

Please submit your CV and a one-page summary of relevant experience for the position to Nadila Simbolon at [email protected] no later than Friday, 26 June.