Unlocking Transition Finance for Achieving Net Zero Emissions in Indonesia

This report by the Climate Policy Initiative analyzes the investment gap for Indonesia's 2030 ENDC targets and examines the regulatory landscape and barriers hindering the scaling of climate-aligned finance in the country's financial sector.

• Indonesia faces a substantial investment gap of approximately USD 146.4 billion, representing a 51% deficit, to achieve its 2030 ENDC targets. Between 2015 and 2021, public and private financial institutions provided USD 41.7 billion in climate finance, which is roughly 15% of the total needs. Private financial institutions, primarily commercial ones, allocated only 3% of their total investments to climate finance.
• Recent regulatory updates aim to support national decarbonization and align with global initiatives. These include the launch of Version 1 of the Indonesia Taxonomy for Sustainable Finance (TKBI) in February 2024 and Version 2 in February 2025, as well as OJK Regulation No 18 Year 2023 (POJK 18/2023) regarding debt securities and sustainability-based bonds and sukuk.

APA

Climate Policy Initiative (2025). Unlocking Transition Finance for Achieving Net Zero Emissions in Indonesia. https://www.climatepolicyinitiative.org/publication/unlocking-transition-finance-for-achieving-net-zero-emissions-in-indonesia/

Chicago

Climate Policy Initiative. Unlocking Transition Finance for Achieving Net Zero Emissions in Indonesia. 2025. https://www.climatepolicyinitiative.org/publication/unlocking-transition-finance-for-achieving-net-zero-emissions-in-indonesia/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Unlocking Transition Finance for Achieving Net Zero Emissions in Indonesia |date=24 February 2025 |url=https://www.climatepolicyinitiative.org/publication/unlocking-transition-finance-for-achieving-net-zero-emissions-in-indonesia/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025unlocking, author = {{Climate Policy Initiative}}, title = {{Unlocking Transition Finance for Achieving Net Zero Emissions in Indonesia}}, institution = {Climate Policy Initiative}, year = {2025}, month = feb, url = {https://www.climatepolicyinitiative.org/publication/unlocking-transition-finance-for-achieving-net-zero-emissions-in-indonesia/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }