Jakarta, February 18, 2025 - Indonesia’s green resources, which comes in various forms including biodiversity and ecosystem services, have the potential to support the Indonesian Government’s objective to achieve 8% economic growth by 2029 This was presented during the session titled Policies and Initiatives for Accelerating Indonesia’s Green Growth at the Indonesia Economic Summit 2025.

Satya Tripathi, Secretary-General of the Global Alliance for a Sustainable Planet (GASP) said Indonesia has a significant potential for Indonesia in pursuing green growth strategy that will deliver steady, stable and sustainable growth, producing both wealth and welfare to its 270 million people.

“Indonesia also has the inherent strength to harness the power of the carbon market, which will benefit people at the bottom of the economic pyramid,” said Satya. Yet, the main challenge for Indonesia is that a lot of real economic benefits from ecosystem services and biodiversity remains unaccounted for by the conventional GDP measurement.

Indonesia commits to reach net zero emissions by 2060 or sooner. President Prabowo Subianto, in a G20 forum, said he is optimistic Indonesia can reach net zero emissions before 2050 and made a pledge to retire around 75 gigawatts of coal-fired power plants and replace them with renewable energy.

Kearney in a 2024 report titled ‘Indonesia Pathway to Net Zero 2060’ said tha Indonesia could require investment in the amount of $2.4 trillion to achieve Net Zero by 2060, majority of which will go to ramp up renewable energy output to account for 100% of electricity consumption by 2060 from 15% in 2020.

Peter Kennedy, Chief Investment Officer of Global Fund for Coral Reefs, shared a similar sentiment on Indonesia green potential and the challenge for the Indonesian Government is to attract that early and initial investment that will help to de-risk environment projects, so that more money can come in to finance such projects.

Shinta W. Kamdani, Chairwoman of Indonesia Employers Association (APINDO) said that Indonesia’s green potential can also improve Indonesia’s competitiveness at the global stage. However, realizing such potential will require a lot of efforts from both the Government by providing incentives and from the private sector by taking the initiatives.

Elim Sritaba, Chief Sustainability Officer of Asia Pulp & Paper (APP) Group, said there’s a different level of understanding between Indonesian companies, especiall the small and medium enterprises (SMEs), on the importance of sustainability to their business and operation. Large companies like APP can play a role by providing education to SMEs on the hidden risk and cost of not doing their business based on sustainability principles.

Arcandra Tahar, former Minister for Energy and Mineral Resources, urged caution for Indonesia to pursue green growth strategy amid rising sentiment to prioritize domestic economic growth over global environmental initiatives in key economies such as the US. Arcandra Tahar sees a future in which both fossil fuel and non-fossil fuel can work together, rather than defeating and competing against each other.

About the Indonesia Economic Summit (IES): The Indonesia Economic Summit (IES) is an annual initiative of the Indonesia Business Council (IBC). Initiated as a high-level forum forum collaboration and innovation, IES seeks to promote competitiveness, inclusive growth, and sustainable prosperity for Indonesia. This forum reflects IBC’s commitment to advancing Indonesia’s role in the global economic arena.

About the Indonesian Business Council (IBC): The Indonesian Business Council (IBC) is an association of CEOs and business/industry leaders of leading companies in Indonesia, established in February 2023. IBC seeks to promote and strengthen Indonesia’s competitiveness, encourage collaboration, and enhance the contribution of the Indonesian private sector to economic growth and prosperity, through advocacy. For media inquiries, please contact:
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