Lighting the Way: How Green Funds and Youth Leadership Are Driving Local Environmental Solutions 

By Dwi Nugroho and Salman Al-Farisi 

Before solar panel programs were introduced, communities in parts of Indonesia had no formal access to electricity.  

“Back in 2015, when our village had no power, we used a generator at night,” shared a resident of Tana Tidung, Bulukan District, North Kalimantan. Despite being near a state-owned oil and gas facility, the region’s remote location on the Malaysian border made energy infrastructure difficult to establish, delaying local development. 

That began to change with the introduction of green fund initiatives, which enabled communities to directly manage government funding for environmental improvement. In Tana Tidung, this meant installing solar panels—dramatically increasing access to electricity and improving residents’ quality of life. For the local fishing communities, electricity at night allowed better preparation for early-morning activities, boosting livelihoods. The provincial government, which is responsible for distributing the funds, could clearly observe how this support is translated into tangible economic and social benefits. 

Green fund initiatives are part of a broader national strategy to tackle environmental challenges by allocating government funds for eco-friendly programs. These funds incentivize local governments to implement policies that improve environmental quality. However, implementation is not without obstacles. Weak coordination between national and local governments, the private sector, and communities often leads to inefficient use of funds, even when resources are available. 

The Role of Youth in Environmental Finance 

To address these challenges, it is vital to engage young people with innovative green fund initiative tools like ecological fiscal transfers (EFT). These government mechanisms reward local regions with funding based on their environmental performance—essentially, they tie money to sustainability results.  

That’s the goal of the “EFT Goes to Campus” program, a collaboration between The Asia Foundation and the Civil Society Coalition for Ecological Funding. Funded by The Asia Foundation and partners, the program teaches university students how public funds can support environmental goals while fostering critical thinking about budgeting, policy, and leadership. 

By building public understanding of how environmental finance works, the program encourages citizens to support responsible spending and demand better policies. When people understand where money goes and why it matters, they’re more likely to reject short-term or harmful decisions and support sustainable development. 

Through early engagement, the program is cultivating a generation of environmentally literate citizens who not only understand ecological issues but also the financial mechanisms that drive real change. This includes learning how EFT supports conservation and sustainability at the local level. 

To date, the program has reached more than 1,200 students across 14 universities in eight provinces: Aceh, Riau, West Kalimantan, South Sulawesi, Central Java, Banten, Jakarta, and Yogyakarta. Students are encouraged to contribute to shaping fair and sustainable public policies. 

At a public discussion on EFT at Diponegoro University in Central Java, where 170 students—60 percent women—gathered, speakers underscored how smart fiscal policy can drive real environmental change.  

“EFT helps close critical gaps in conservation funding and strengthen conservation across programs,” said Dr. Ika Riswanti Putranti, vice dean of resources at the university.  

R. Alam Surya Putra pointed to success stories in North Kalimantan and Papua, where performance-based incentives like TAPE and TAKE are “turning budgets into tools for greener performance.”  

Dr. Nur Hidayat Sardini urged students to see environmental leadership not as theory, but as a calling: “When education reflects real-world challenges, it empowers students to shape real-world solutions.”  

Putri Milasari, an environmental activist in her twenties from Semarang, began her work after seeing her neighborhood inundated by tidal floods each rainy season. Today, she leads coastal communities in Central Java on issues like waste management and tidal flooding.  

“It’s not just about picking up trash,” she said. “It’s about understanding how we’re connected to the environment and to each other.” Her actions demonstrate how young people can play a direct role in local environmental problem-solving. 

As EFT Goes to Campus continues to grow, it underscores a vital truth: youth engagement is essential for long-term environmental progress. Programs like this not only raise awareness but also equip the next generation with the tools and knowledge they need to create a cleaner, fairer, and more sustainable future.