GREEN INFRASTRUCTURE INVESTMENT OPPORTUNITIES INDONESIA

The report highlights a pipeline of 38 green infrastructure projects in Indonesia for 2018-2019, ranging from a USD15m solar project to a USD6bn high-speed rail development. It emphasizes the role of green finance, specifically green bonds and the world's first sovereign green sukuk, in bridging a USD150bn infrastructure investment gap. Key sectors identified include low-carbon transport (rail and BRT), renewable energy (geothermal and hydropower), sustainable water and waste management, and the built environment (certified green buildings).

• Indonesia has a significant infrastructure funding gap, seeking approximately USD150bn in investments to supplement the state budget, which covers 63% of the estimated USD400bn needed for public-works projects between 2015 and 2019.
• The Indonesian government demonstrated leadership in green finance by issuing the world's first sovereign green sukuk in early 2018, which was upsized to USD1.25bn due to high investor demand and priced at 3.75%.
• The 2018-2019 green infrastructure pipeline includes 38 projects, with the largest opportunities concentrated in low-carbon transport, specifically rail and Bus Rapid Transit (BRT), and renewable energy, focusing on geothermal and hydropower.
• In the transport sector, key planned projects include the Medan urban railway (est. USD477.4m) and the Batam Island Railway (est. USD635m), while the Jakarta-Bandung High-Speed Rail is under construction with a cost of almost USD6bn.
• Indonesia's renewable energy targets aim for renewable sources to comprise at least 23% of the energy mix by 2025 and 31% by 2050, with geothermal and hydropower currently dominating the mix.
• The water and waste sector faces critical challenges, with 69% of the 64 million tonnes of annual solid waste sent to open dumpsites; the government is responding by planning seven waste-to-energy plants.
• In the built environment, the '30:30 Commitment' in Jakarta aims to reduce energy and water consumption and carbon emissions by up to 30% by 2030, supported by the use of EDGE and Greenship certifications.
• The global green bond market is growing rapidly, reaching USD160.8bn in issuance in 2017, an 85% increase from the previous year, driven by institutional investors from OECD nations and China.

APA

Climate Bonds Initiative (2018). GREEN INFRASTRUCTURE INVESTMENT OPPORTUNITIES INDONESIA. https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunities-Indonesia.pdf

Chicago

Climate Bonds Initiative. GREEN INFRASTRUCTURE INVESTMENT OPPORTUNITIES INDONESIA. 2018. https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunities-Indonesia.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=GREEN INFRASTRUCTURE INVESTMENT OPPORTUNITIES INDONESIA |date=May 2018 |url=https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunities-Indonesia.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2018green, author = {{Climate Bonds Initiative}}, title = {{GREEN INFRASTRUCTURE INVESTMENT OPPORTUNITIES INDONESIA}}, institution = {Climate Bonds Initiative}, year = {2018}, month = may, url = {https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunities-Indonesia.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }