Green Infrastructure Investment Opportunities INDONESIA: Green Recovery 2022 REPORT

The report outlines Indonesia's need for USD 322.8 billion in climate-compatible infrastructure by 2030, focusing on renewable energy, low-carbon transport, sustainable water, and waste management. It highlights a significant financing gap and argues for the use of green bonds, blended finance, and de-risking mechanisms to attract private investment. The document also details the role of the SDG Indonesia One platform and the ASEAN Catalytic Green Finance Facility in bridging these gaps.

• Indonesia requires an estimated USD 322.8 billion in climate-compatible infrastructure and assets by 2030 to meet its emission targets, with energy and transportation accounting for approximately 75% of this need at USD 245 billion.
• There is a substantial annual financing gap for climate-adjusted infrastructure in Indonesia, estimated at USD 51 billion, with the state budget only meeting about 34% of funding needs between 2016 and 2020.
• Indonesia's initial pandemic recovery stimulus lacked a strong green focus, with only 4% of total stimulus funding allocated to the green sector, while the majority of energy-related stimulus (USD 6.54 billion) supported fossil fuels.
• The renewable energy sector requires USD 154 billion by 2025 to reach a 23% energy mix target; however, growth is hindered by opaque procurement rules and unpredictable cash flows from power purchase agreements.
• The Indonesian green, social, and sustainability (GSS) bond market reached USD 7.7 billion as of November 2021, with green bonds contributing USD 6.3 billion, largely driven by sovereign issuances.
• The Otoritas Jasa Keuangan (OJK) released the first edition of the Indonesia Green Taxonomy on January 20, 2022, utilizing a unique 'traffic light system' (green, yellow, red) to classify business activities by environmental impact.
• The SDG Indonesia One (SIO) platform, managed by PT SMI, has pooled USD 3.24 billion from diverse sources and channeled USD 231 million into sustainable infrastructure projects to address the lack of bankable green projects.
• The transport sector contributes 26% of national GHG emissions, and the railway infrastructure alone will require approximately USD 65 billion in investment between 2021 and 2030.
• Indonesia faces a waste emergency as the second-largest producer of plastic waste globally, with an estimated USD 18.4 billion needed by 2040 for adequate waste management infrastructure.
• Key barriers to green bond growth include a lack of domestic expertise in verification and external review, as well as high relative costs for smaller issuances under USD 100 million.

APA

Gunawan, N., Tukiainen, K., & Boulle, B. (2022). Green Infrastructure Investment Opportunities INDONESIA: Green Recovery 2022 REPORT. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunity-GIIO-Indonesia-Green-Recovery-2022-Report.pdf

Chicago

Gunawan, Nabilla, Krista Tukiainen, and Bridget Boulle. Green Infrastructure Investment Opportunities INDONESIA: Green Recovery 2022 REPORT. Climate Bonds Initiative, 2022. https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunity-GIIO-Indonesia-Green-Recovery-2022-Report.pdf.

Wikipedia

{{cite report |last1=Gunawan |first1=Nabilla |last2=Tukiainen |first2=Krista |last3=Boulle |first3=Bridget |title=Green Infrastructure Investment Opportunities INDONESIA: Green Recovery 2022 REPORT |publisher=Climate Bonds Initiative |date=March 2022 |url=https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunity-GIIO-Indonesia-Green-Recovery-2022-Report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gunawan2022green, author = {Gunawan, Nabilla and Tukiainen, Krista and Boulle, Bridget}, title = {{Green Infrastructure Investment Opportunities INDONESIA: Green Recovery 2022 REPORT}}, institution = {Climate Bonds Initiative}, year = {2022}, month = mar, url = {https://www.climatebonds.net/files/documents/publications/Green-Infrastructure-Investment-Opportunity-GIIO-Indonesia-Green-Recovery-2022-Report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }