Decades of World Bank partnership have helped Indonesia build one of the world's most mature community-driven development (CDD) systems. Today, more than 75,000 villages receive direct fiscal transfers for climate resilience investments, averaging $3.8 billion per year, and participate in structured planning processes that give communities a formal role in setting priorities and managing projects.
Facing more than 3,000 disasters annually, over 98 percent of them climate-related, Indonesia has pioneered tools that connect climate analytics to budget decisions. The Village Climate Risk Index, for example, is an Intergovernmental Panel on Climate Change-aligned classification of village-level risk that now steers additional fiscal allocations toward the country’s most climate-vulnerable communities.
As the World Bank looks to build on lessons learned in countries like Indonesia and expand knowledge on what works in new contexts, a key question emerges: how can governments channel resources, knowledge, and decision-making authority to the local level—and do so at scale?
In January 2026, the World Bank and the Government of Indonesia convened a Global Knowledge Exchange in Jakarta to tackle this question. Over four days, delegations from 13 countries from Africa, East Asia and the Pacific, Central Asia, and Latin America came together to share what works in building climate resilience, creating jobs, and empowering local communities.
Read this brief to learn about the transferable lessons identified during this exchange.
Learn more about the Platform for Locally Led Climate Action