Jakarta, 25 June: Indonesia needs clear and deliberate policies to counter global protectionism and short-term defences shaping today’s markets, which are slowing investments in long-term energy security and sustainability, said leading stakeholders at the flagship Unlocking capital for sustainability summit in Indonesia yesterday.
The tense geopolitical environment has significantly affected Asean’s sustainable development path and political conflicts are now a major systemic barrier to the clean energy transition, while disrupting trade and stifling economic growth.
The region will need at least US$200 billion in annual energy investments by 2030, three-quarters of which are earmarked for clean energy projects, and geopolitics will be the decisive factor determining the success of the transition.
Meanwhile, Indonesia’s central bank raised its interest rate three times in one month in response to global volatility, a weakening rupiah and growing inflation risks. This, while providing short-term defences, fuels longer-term market uncertainty.
Building bankability amid external headwinds
Gita Sabharwal, the United Nations (UN) resident coordinator for Indonesia, said these repeated shocks are “reshaping how decisions are made”, with stakeholders shifting focus towards immediate returns as investment horizons shorten and risk appetite tightens.
“Under pressure, ESG can sometimes be viewed as a compliance exercise – another report at a time of competing priorities and rising costs. But the evidence is clear … It reduces risk, strengthens supply chains and improves the cost of capital, enabling companies to outperform over time,” she said in her opening address.
However, Sabharwal cautioned that the metrics around environmental, social, and governance (ESG) investments must be supported by clear standards, credible taxonomies and transparent disclosure frameworks to allow investors to price risk with confidence.
H.E. Denis Chaibi, ambassador of the European Union (EU) to Indonesia and Brunei Darussalam, said investing in the transition is key to enhancing economic competitiveness, but the challenge lies in quantifying the value of these investments.
“Competitiveness is at the heart of both Indonesia and EU political debate. In the EU, we have a clear debate between those who feel … that our companies are suffering from the green measures that are not being made competitive,” he said in his special address. “In Indonesia, you always have this dilemma: how can we maximise the resources for coal or palm oil, and how you do put a value on its environmental cost?”
He pointed to examples across the EU, such as Spain betting heavily on solar and wind energy to emerge as one of the most profitable destinations for green investments, and highlighted Indonesia’s immense carbon market potential following new regulation last year to bolster the market’s credibility and competitiveness.
“In a country that has so many coal reserves, the carbon markets and the price you put on carbon will be a key element of better resource management and favouring the climate transition,” he said.
The link between energy security and economic resilience
Meanwhile, the ongoing Gulf conflict exposed structural vulnerabilities within the global energy system, with economic resilience now closely tied to energy security.
H.E. Satvinder Singh, deputy secretary general for the ASEAN Economic Community, said the region must accelerate efforts to transition towards a sustainable and diversified energy system, especially in the face of evolving global challenges.
“Energy security and sustainability must go hand in hand to support our efforts as a region towards continued growth. For me, economic security today must include our focus on a balanced, inclusive energy transition that supports workers, communities and industries,” he said in his closing keynote address.
Organised by Eco-Business in partnership with United Nations Environment Programme Finance Initiative (UNEP FI), and held as part of the fifth annual Global Sustainable Development Congress (GSDC), the 2026 edition of Unlocking capital for sustainability – Indonesia convened 120 delegates from government, finance and industry under the theme of “Strengthening governance, securing resilience”.
Meaghan See, chief commercial officer for Eco-Business, said the impact of global uncertainties on policy direction, multilateral ties and capital deployment is a stark reminder of how quickly investor confidence can turn when policy direction is unclear.
She added, however, that the headways being made in the region are proof that it is no longer a question of whether to invest in sustainable development but how to govern it.
“Asia is no longer waiting for a global rulebook to arrive before it acts. Whether it is Indonesia’s carbon governance reforms, regional taxonomies maturing across Asean or capital that has already moved past the trillion-dollar mark in sustainable bonds, Asia is writing its own playbook, on its own timeline and often faster than the conversations happening elsewhere. That’s not a footnote to the global story. Increasingly, it is the story,” she said.
Unlocking capital for sustainability is hosted in six markets across Asia in 2026. In addition to Jakarta, the flagship forum will be hosted in Kuala Lumpur in July, Manila in August, Singapore and Bangkok in September and Hong Kong in November.
For more information on next month’s Malaysian forum, visit our website.
– Ends –
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 business intelligence and advisory platform dedicated to advancing sustainable development. We produce trusted, high-quality multimedia content exploring the world’s most pressing challenges—and the solutions driving change. Our work is aligned with the 17 United Nations Sustainable Development Goals (SDGs) and supported by a 15-year archive of news, analysis, research, and events on sustainable development topics. Headquartered in Singapore, we have a presence in Manila, Kuala Lumpur, Jakarta, Bangkok, Hong Kong, Beijing, and London.
For more information, 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. Our full list of knowledge partners – past and present – can be found on our website: www.
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