Jakarta, Indonesia, 20 June – Responsible for nearly 2 per cent of global carbon emissions, Indonesia is the planet’s third-largest coal producer. Despite recent government pledges to phase out fossil fuels, progress on its energy transition remains challenging.
Leaders from government, finance, business, and civic society convened to launch the seventh edition of Unlocking Capital for Sustainability in Indonesia, kicking off the first of six events across Asia, with this year’s edition being the second in-person event held in Indonesia.
Themed “Integrating sustainable finance: A nation in transition,” the event featured two panels – with one panel discussing how the nation can maintain its energy transition momentum, and another panel touching upon how Indonesia can mobilise finance to safeguard its natural resources and biodiversity.
The event was organised by Eco-Business in collaboration with the United Nations Environment Programme Finance Initiative and held as part of Jakarta Investment Festival 2024. This regional forum is part of the annual flagship event on sustainable finance for the Asia-Pacific region, bringing together high-level decision-makers to discuss and commit to actionable initiatives aimed at mobilising capital markets for sustainable development.
Indonesia’s reliance on coal for domestic energy and as a revenue source poses significant obstacles, and achieving a just energy transition while maintaining economic stability is a complex undertaking.
The country already grapples with climate change consequences: Jakarta, sinking due to land subsidence, rising sea levels, and intense rainfall, exemplifies the urgency. The nation plans to relocate its capital to East Kalimantan Nusantara within 25 years.
Amid a new leadership transition, all eyes are on how Indonesia will establish the robust policy frameworks required for its sustainable transition and for it to achieve its aspiration to become a developed nation by 2045.
How Indonesia will attract the capital it needs for this transition – all while safeguarding its rich biodiversity and protecting livelihood – was discussed at the forum.
“Cities are playing a vital role in developing, implementing and overseeing the energy transition policies. As the national centre of economic and business, Jakarta, with our vision towards a Global City, is ready to promote sustainable transition by accelerating the transformation of our city’s development aspects such as public transportation, infrastructure, and energy. To support the transition, we are open for collaborative partnership with global counterparts through the Jakarta Investment Catalyst Initiative and 35 strategic investment projects that we are offering this year at Jakarta Investment Festival 2024,” said Tona Hutauruk, Head, Jakarta Investment Centre.
“The energy transition demands substantial investment, and decarbonising Indonesia is vital not only for the country but also for the region. This is a step-by-step process that requires strategic partnerships and sustainable financing to ensure a reliable and safe energy future. As we expand our renewable energy capacity, we must not abandon existing infrastructure; it should be leveraged to bridge the gap. Also, we must recognise the critical importance of a robust grid. A resilient and modernised grid is the backbone of the energy transition, enabling the integration of renewable energy sources and ensuring stable energy delivery to the region,” said Karna Mohan, Vice President of Finance for Siemens Energy in Asia Pacific, who spoke on the panel discussing Indonesia’s energy transition.
“The conversations we’ve had today highlight the intersections between finance and policy and emphasise the urgency in which Indonesia must transition towards sustainable development. To realise this potential, we need continued investment support from all sectors – governments, businesses, investors and civil society,” said Natalia Rialucky Marsudi, Founder & Chief Executive Officer of Fairatmos, in her closing remarks.
Jakarta Investment Centre and Siemens Energy are the strategic partners of this event, while OCBC Bank is the supporting partner. Knowledge partners include Centre for Asian Philanthropy and Society (CAPS), and International Finance Corporation. Asia Investor Group on Climate Change is the event’s outreach partner.
For more information, visit the Unlocking capital for sustainability website at https://www.unlockingcapitalforsustainability.com/indonesia/2024.
For high-resolution photos from the event, please visit this page.
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Notes to Editors:
For enquiries or photos, contact:
Gabrielle See, Eco-Business
gabrielle.see@eco-business.com
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About Eco-Business
Established in 2009, Eco-Business is Asia Pacific’s leading media organisation on sustainable development. Its independent journalism unit publishes high quality, trusted news and views that advance 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, New York 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 premiere event organised by Eco-Business in partnership with UN Environment 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.
More information about Unlocking capital for sustainability can be found at www.unlockingcapitalforsustainability.com.
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