Indonesia’s sustainability transition hinges on its ability to crowd in private sector investment and boost the government’s financial capacity to plug a US$1.7 trillion financing gap, said leading industry players at the Unlocking capital for sustainability conference in Jakarta held on 24 June this year.
Engaging these stakeholders is crucial against a backdrop of slowing economic growth, macroeconomic uncertainty and geopolitical upheaval, which threaten to slow investment into sustainable and green projects.
“Leveraging domestic investment for this ambitious transformation is key amid today’s global economic slowdown. Progress or setbacks in one country impact the economies of other nations. For instance, Singapore relies heavily on renewables in Indonesia for its own energy needs,” said Gita Sabharwal, UN Resident Coordinator for Indonesia, during her keynote address.
“Analysis tells us that the financing gap to meet the Sustainable Development Goals in Indonesia stands at US$1.7 trillion. Closing this gap will require the private sector to mobilise capital while being ready to take calculated risks in support of sustainability, which will bolster bottom lines.”
She added that catalysing investment will also “require working with provincial governments to strengthen their capacity for issuing municipal bonds predicated on robust financial assessments,” potentially unlocking an additional US$2 billion for accelerating Indonesia’s green and blue economies.
Indonesia is making significant progress in greening its economy, targeting a 28 per cent increase in new and renewable energy investments this year, at US$1.8 billion compared to 2024, and launching a first-of-its-kind sovereign blue bond to finance the sustainable use of marine ecosystems – supporting local livelihoods and unlocking carbon mitigation potential.
The challenge is ensuring the right regulatory, governance and financial mechanisms are in place to support the greening and blueing of the domestic economy, while unlocking public-private-philanthropic partnerships to address investment gaps, experts said.
“Southeast Asia is at an inflection point. We can be a global hub for green innovation, a source of credible offsets and a destination for sustainability-based investment, but only if we act together with a sense of urgency to create the enabling environment for these complex projects to succeed,” said Kwok Fook Seng, Singapore’s Ambassador to Indonesia, who provided the closing address.
Themed “Empowering change: financing Indonesia’s green and blue economy”, the Indonesian edition of the thought leadership forum, organised by Eco-Business in partnership with United Nations Environmental Programme Finance Initiative (UNEP FI), convened over 100 decision-makers across government, finance and industry at The Pullman Hotel Jakarta, to identify novel and collaborative solutions to Indonesia’s pressing challenges.
“The conversations that took place at Unlocking capital for sustainability (UCFS) are crucial in catalysing public-private partnerships to drive innovation in climate tech, clean energy and sustainable ocean use. These partnerships are integral in decoupling economic growth from carbon emissions, but they can only achieve the necessary commercial scale with the right financial, regulatory and policy levers. This is where financial institutions, multilateral organisations and government agencies come in,” said Meaghan See, Chief Commercial Officer for Eco-Business.
Global environmental disclosure platform CDP, energy finance think tank Energy Shift Institute, the UN Global Compact Network Indonesia for advancing corporate sustainability and climate-tech startup TerraNova were the knowledge partners for the sustainable finance-themed summit, while Endeavor – a global community of high-impact entrepreneurs – was the outreach partner.
“As the world’s only independent environmental disclosure system, CDP is proud to partner with UCFS Indonesia 2025 to spotlight the critical role of data to enable Earth-positive decisions and power sustainable finance. With rising demand for consistent, comparable and decision-useful environmental data, this event provides a vital platform to align capital flows with climate and nature goals — particularly in a region as dynamic and high-impact as Southeast Asia,” said Jose Ordonez, Global Chief Revenue Officer and APAC Managing Director, CDP.
“At TerraNova, we understand that climate innovation can’t scale without access to capital, especially for early-stage technologies tackling urgent emissions challenges. We joined as a knowledge partner because Eco-Business provides a critical platform to connect ideas with investors and bridge the funding gap that often limits clean-tech breakthroughs. As we develop carbon capture solutions for transportation, we know mobilising domestic and international finance is essential – not just for us, but for the entire ecosystem working towards a just and accelerated energy transition,” said El Roy Tobing, Founder and CEO, TerraNova.
“Indonesia’s green economy won’t be built on perfect conditions but on credible actions. That means aligning capital with real transition outcomes – reduced emissions in the near-term, protected ecosystems and new climate-friendly industries. That’s where government must steer capital. We’re excited to partner with UCFS this year, helping to sharpen the conversation and pose the difficult questions,” said Putra Adhiguna, Managing Director, Energy Shift Institute.
Hosted by PT TBS Energi Utama Tbk. and Eco-Business, the thought leadership forum is also organising a screening and talkshow on Eco-Business’ latest impact documentary, WASTED, today, convening leading ecosystem players across government, industry, non-governmental organisations and civic society to explore the connections between waste and planetary and human health in Asia.
For more information on Unlocking capital for sustainability, visit our website and download our insights report from 2024.
ANNEX
Plenaries include:
- Opening keynote by Gita Sabharwal, UN Resident Coordinator Indonesia
- Opening plenary: Mobilising domestic capital, de-risking investments for the just energy transition
- Plenary #2: Blue finance and tech: tapping into Indonesia’s ocean economy for sustainable growth
- Closing plenary: Unleashing AI for climate innovation and inclusion
- Closing address by Kwok Fook Seng, Singapore’s Ambassador to Indonesia
For full list of speakers, please view our programme.
Notes to Editors:
For enquiries or photos, please contact:
Mark Rao, Eco-Business
About Eco-Business
Established in 2009, Eco-Business is Asia Pacific’s leading media and advisory platform dedicated to sustainable development. Its publishes high quality, trusted content that advances dialogue and enables measurable impact on a wide range of sustainable development and responsible business issues. Eco-Business is headquartered in Singapore, with a presence in Beijing, Hong Kong, Manila, Kuala Lumpur, Jakarta, and correspondents across major cities in Asia Pacific. Visit www.eco-business.com.
About UNEP FI
UNEP Finance Initiative brings together a large network of banks, insurers and investors that collectively catalyses action across the financial system to deliver more sustainable global economies.
For more than 30 years the initiative has been connecting the UN with financial institutions from around the world to shape the sustainable finance agenda. We’ve established the world’s foremost sustainability frameworks that help the finance industry address global environmental, social and governance (ESG) challenges.
Convened by a Geneva, Switzerland-based secretariat, more than 500 banks and insurers with assets exceeding US$170 trillion work together to facilitate the implementation of UNEP FI’s Principles for Responsible Banking and Principles for Sustainable Insurance, as well as three UN-convened net-zero alliances. Financial institutions work with UNEP FI on a voluntary basis, and we help them to apply the industry frameworks and develop practical guidance and tools to position their businesses for the transition to a sustainable and inclusive economy.
Founded in 1992, UNEP FI was the first organisation to engage the finance sector on sustainability and incubated the Principles for Responsible Investment, now the world’s leading proponent of responsible investment.
Today, we cultivate leadership and advance sustainable market practice while supporting the implementation of global programmes at a regional level across Africa & the Middle East, Asia Pacific, Europe, Latin America & the Caribbean and North America. More details about UN Environment can be found at www.unepfi.org.
About Unlocking capital for sustainability
Unlocking capital for sustainability is an annual flagship event organised by Eco-Business in partnership with UNEP FI that brings together high-level decision makers in finance, business, government and civic society to discuss and commit to actionable initiatives that mobilise the capital markets for sustainable development projects. The event’s partners for the Indonesia edition comprise CDP, Energy Shift Institute, UN Global Compact Network Indonesia, TerraNova and Endeavor. Our full list of knowledge partners – past and present – can also be found on our website: www.unlockingcapitalforsustainability.com
Publish your content with EB Publishing
It's about who you reach. Get your news, events, jobs and thought leadership seen by those who matter to you.
