Green Infrastructure Investment Opportunities INDONESIA UPDATE REPORT

The report highlights Indonesia's growing green bond market, which reached nearly USD 3 billion by October 2019, and the government's efforts to scale up blended finance to meet climate targets and sustainable development goals. It emphasizes the role of development finance institutions (DFIs) in de-risking projects and the importance of avoiding deforestation in green investments.

• Indonesia has developed a green bond market valued at almost USD 3 billion, featuring five issuers as of October 2019. This includes a USD 1.25 billion sovereign green sukuk, which was the first of its kind in the region and the fifth globally, and a USD 580 million deal by Star Energy Geothermal for the Wayang Windu plant.
• The Indonesian government is actively promoting the blended finance model to attract private capital and reduce investment barriers using philanthropic or official development finance. Key initiatives include the Tri Hita Karana Roadmap for Blended Finance (October 2018) and the launch of the Blended Finance and Innovation Institute in September 2019, intended as an ASEAN hub and global accelerator for achieving the SDGs.
• Development finance institutions (DFIs) support Indonesian green infrastructure by providing credit enhancements, such as risk guarantees and first-loss provisions, to governments, state-owned enterprises, and investors. Examples of such support include the IFC's Green Komodo Bonds, which were offshore Rupiah-denominated bonds for climate projects in Indonesia.
• While a significant portion of green bond proceeds in Indonesia are allocated to sustainable land use, rainforest conservation, and climate adaptation, there is a critical need to ensure these projects avoid deforestation. Indonesian regulation requires an Environmental Impact Assessment (AMDAL) for projects overlapping with protected forest areas, national parks, or reserves.

APA

Climate Bonds Initiative (n.d.). Green Infrastructure Investment Opportunities INDONESIA UPDATE REPORT. https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunities-Indonesia-Update-Report.pdf

Chicago

Climate Bonds Initiative. Green Infrastructure Investment Opportunities INDONESIA UPDATE REPORT. n.d. https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunities-Indonesia-Update-Report.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Green Infrastructure Investment Opportunities INDONESIA UPDATE REPORT |url=https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunities-Indonesia-Update-Report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiativendgreen, author = {{Climate Bonds Initiative}}, title = {{Green Infrastructure Investment Opportunities INDONESIA UPDATE REPORT}}, institution = {Climate Bonds Initiative}, url = {https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunities-Indonesia-Update-Report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }