Enhancing Capital for Sustainable Development - Indonesia, 2025
Indonesia is embarking on a comprehensive journey towards a sustainable, inclusive, and resilient economy by 2045, focusing on the net zero transition, clean energy, and the blue economy within its National Long-Term Development Plan 2025-2045.
To achieve this ambitious goal, Indonesia is adopting a multi-faceted approach that encompasses regulatory frameworks, innovative financing, energy system transformation, biodiversity conservation, and inclusive community empowerment.
One of the key strategies is decarbonizing power production and phasing out fossil fuels. The government is implementing an Energy Transition Mechanism to facilitate the coal phaseout and increase clean energy adoption. Indonesia also aims to create a Green Taxonomy framework to guide and attract both domestic and international capital towards sustainable projects.
Another innovative financing initiative is the issuance of the world's first sovereign blue bond. This bond will fund projects in the blue economy, aiming to develop sustainable ocean-based economic activities while preserving biodiversity.
Indonesia faces a significant funding gap of over US$500 billion to meet its 2060 net zero target. To address this, the country is tapping into domestic and blended finance sources, and encouraging greater corporate sustainability disclosure and the development of a domestic carbon market to drive private sector participation.
In addition to these financial efforts, Indonesia is also focusing on promoting nature-positive development and biodiversity conservation. Initiatives like ENABLE and SPARE aim to protect millions of hectares of forest and marine areas, while also supporting local communities through sustainable livelihoods and carbon sequestration.
Strategic investments in key sectors via partnerships are also a crucial part of Indonesia's plan. The government is fostering collaborations, as exemplified by Danantara Indonesia's US$4 billion joint fund focusing on renewable energy, downstream minerals, food security, healthcare, and digital infrastructure.
Empowering communities is another essential aspect of Indonesia's inclusivity efforts. The country is working to ensure that sustainability benefits extend to local and indigenous communities, including women, thereby promoting social equity alongside economic and environmental targets.
The "Unlocking Capital for Sustainability - Indonesia" event, being convened, provides a platform for news, events, jobs, and thought leadership publication. Early bird tickets are available at SGD50 until 31 May 2025, with special discounts for EB Circle, EB Premium, and EB Enterprise subscribers. From 1 June 2025, the regular rate will be SGD100.
Indonesia's progress towards this goal includes developing a Green Taxonomy, planning a coal phaseout under the Energy Transition Mechanism, and launching the world's first sovereign blue bond. As the country continues to implement these strategies, it is poised to build a resilient and inclusive economy that addresses climate change, pollution, and biodiversity loss comprehensively.
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- Indonesia's comprehensive journey towards a sustainable, inclusive, and resilient economy by 2045 involves strategies like decarbonizing power production, biodiversity conservation, and community empowerment.
- The government is adopting an Energy Transition Mechanism to facilitate the coal phaseout and increase clean energy adoption, and creating a Green Taxonomy framework to guide capital towards sustainable projects.
- Indonesia's financial efforts include issuing the world's first sovereign blue bond for ocean-based economic activities, addressing a funding gap of over US$500 billion for the 2060 net zero target through domestic and blended finance, and promoting a domestic carbon market.
- Nature-positive development and biodiversity conservation initiatives like ENABLE and SPARE aim to protect forest and marine areas, supporting local communities with sustainable livelihoods and carbon sequestration.
- Partnerships in key sectors, such as renewable energy, downstream minerals, food security, healthcare, and digital infrastructure, are crucial for Indonesia's sustainable development, as demonstrated by Danantara Indonesia's US$4 billion joint fund.
- Empowering communities is essential for Indonesia's inclusivity efforts, aiming to extend sustainability benefits to local and indigenous communities, including women, promoting social equity alongside economic and environmental targets.
