Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin) and the International Organization for Migration (IOM) have officially signed a Memorandum of Understanding (MoU) to address the challenges of population displacement caused by disasters and climate change in Indonesia.

The signing ceremony took place at the Kadin Indonesia Tower, South Jakarta, on Thursday, July 31, 2025.

This collaboration aims to respond to the increasing threats posed by climate change, which impact population displacement both socially and economically.

Kadin and IOM will focus on strengthening community resilience through various joint initiatives, including reinforcing local solutions and enhancing adaptive capacities.

One of the agreed forms of cooperation is the development of the Climate Catalytic Fund (CCF) scale in Indonesia, a funding mechanism initiated by IOM to promote community-based solutions in tackling the impacts of climate change.

Additionally, the cooperation includes research on the socio-economic impacts of population displacement and support for inclusive adaptation planning.

Suryani Motik, Deputy Chairperson for Social Affairs and Disaster Management at Kadin Indonesia, stated that this partnership underscores the importance of private sector involvement in complex climate issues.

“This partnership reaffirms the crucial role of private sector collaboration in addressing the challenges of population displacement due to climate change. By combining our experience in innovation and business networks, we can build sustainable solutions that are replicable and strengthen climate resilience,” said Suryani.

She added that the presence of the CCF could act as a catalyst for the business community to become more active in supporting social empowerment programs at the community level.

According to her, the private sector’s contribution to climate change mitigation is vital for the nation's long-term resilience.

“Private sector involvement in mitigating the impacts of climate change is essential as part of Indonesia’s role in addressing climate change impacts in the long term,” emphasized Suryani.

Meanwhile, Jeffrey Labovitz, IOM Chief of Mission, stressed that the challenges of climate-induced displacement cannot be addressed in a sectoral manner.

He encouraged a collaborative and cross-sectoral approach as the key to protecting vulnerable communities.

“Population displacement caused by climate change cannot be tackled through isolated efforts; strong partnerships and collaborative approaches are needed. Only by working across sectors and borders can we find solutions that focus on protecting vulnerable communities and upholding the dignity of those forced to move,” said Labovitz.

Through this cooperation, Kadin and IOM are committed to creating tangible impacts in strengthening social and environmental resilience amid the ongoing climate crisis.

As information, moving forward, Kadin and IOM will launch the exploratory phase of the CCF in Indonesia. This initial stage will begin with outreach sessions and consultations with interested private sector actors to collaboratively develop innovative solutions based on local wisdom and context in addressing the challenges of climate-induced population displacement.